$13,000
The Annual Gift Tax Exclusion for 2012 is $13,000. For example, in 2012 you could give $13,000 each to your son, your niece and your nephew without incurring any federal gift tax. The federal gift tax rate in 2012 for a gift over $13,000 to any one person is 35%.
Are spouses exempt from gift tax?
The annual exclusion also is per person, which means that if you’re married, you and your spouse could give away a combined $30,000 a year to whomever without having to file a gift tax return. Gifts between spouses are unlimited and generally don’t trigger a gift tax return.
What was the lifetime exemption in 2012?
$5,120,000
Federal Estate and Gift Tax Rates, Exemptions, and Exclusions, 1916-2014
| Year | Estate Tax Exemption | Lifetime Gift Tax Exemption |
|---|---|---|
| 2009 | $3,500,000 | $1,000,000 |
| 2010 | $5,000,000 | $1,000,000 |
| 2011 | $5,000,000 | $5,000,000 |
| 2012 | $5,120,000 | $5,120,000 |
How much can you gift to your spouse for tax exclusion?
Gifts to spouses who are U.S. citizens are tax-free as well. It all starts with the annual exclusion, which lets you make gifts of up to $15,000 per year per person tax-free as of 2020. 2 These gifts don’t count against your $11.58 million lifetime exemption.
When does the lifetime gift tax exemption kick in?
The lifetime exemption only kicks in when you exceed this annual amount in a given year. The key words here are “per person.” If your son and his spouse want to buy a house and you want to give them $30,000 for a down payment, you can do that without paying a gift tax. You can attribute $15,000 for that year to each of them.
When does the annual exclusion apply to gifts?
The annual exclusion applies to gifts to each donee. In other words, if you give each of your children $11,000 in 2002-2005, $12,000 in 2006-2008, $13,000 in 2009-2012 and $14,000 on or after January 1, 2013, the annual exclusion applies to each gift.
How does making a gift affect your taxes?
Making a gift or leaving your estate to your heirs does not ordinarily affect your federal income tax. You cannot deduct the value of gifts you make (other than gifts that are deductible charitable contributions). If you are not sure whether the gift tax or the estate tax applies to your situation,…
