Q: Tax question on Inheritance
My partner is considering giving me 50K as a gift. We live together in California and not married yet. We heard that there's 16K annual cash gift limitation but he can assign the rest 34K as his lifetime exemption (Inheritance and I am in his will). My question is are we qualified for this tax rule since we are not married?
A: Yes, you are still qualified for the annual gift tax exclusion and the lifetime exemption even though you are not married. The annual gift tax exclusion allows for gifts up to $16,000 per recipient per year without any tax consequences for either the giver or receiver. Any gifts over that amount will generally count towards the lifetime exemption, which is currently set at $11.7 million. As long as the total amount of the gift (including any past gifts) does not exceed the lifetime exemption amount, there would not be any gift tax owed. However, it's important to note that the rules around gift taxes can be complex, so it's a good idea to consult with a tax professional to make sure you are in compliance with all relevant laws and regulations.
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