Q: How much money can I gift without receiver paying taxes?
A: The donor is generally responsible for paying gift tax. The following answer is based on the assumption that you are making a gift as defined by the IRS. There are generally two different federal gift tax exclusions. (1) As of 2013, the annual exclusion is $14,000. You can gift up to that amount tax free to any individual. For example, $14k to your son and $14k to your daughter. (2) The lifetime gift tax exemption is the total amount that you can give away during your lifetime. This amount is linked to your estate tax exclusion. I highly encourage you to contact a tax professional if you plan on making gifts that are larger than the annual exclusion and to get an answer that is specifically tailored to the facts of your case.
A: Generally, the donor pays the gift taxes if any. The annual exclusion is now $14,000, and you must file a gift tax return form 709, if you pay someone more than this amount per person in a year. If you exceed your life-time threshold of $5,250,000 this year, then you pay 40% taxes on the excess. Good luck.
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