This holiday season, you may want to make cash gifts to loved ones. The annual gift tax exclusion for 2023 is $17,000 ($34,000 for married couples). You can give up to that amount to an unlimited number of people by Dec. 31, and the gifts will be exempt from gift tax, the generation-skipping tax and filing obligations.
You can’t “carry over” tax-exempt gifts from year to year, but there may be strategies for making larger gifts. If, for example, you and your spouse want to help your daughter buy a house, you can give her $34,000 on Dec. 31. Then on Jan. 1, you can give an equal or higher amount, when 2024’s gift tax exclusion is projected to be $18,000 ($36,000 for married couples).
Contact one of our experts for help with tax planning.