For 2024, you can give up to $18,000 per recipient without having to report the gift to the IRS. If you're married, you and your spouse can each give $18,000 to the same person, which totals $36,000 in tax-free gifts. For example, if you gave your daughter $15,000 and your spouse gave her $15,000, you're well within the exclusion and neither of you would have to file a gift tax return.
Gifts over the annual limit don't automatically trigger taxes, but they do require documentation. You'll need to file IRS Form 709 to report any excess amounts. These larger gifts count against your lifetime gift and estate tax exemption, set at $13.61 million per person for 2024.
Most people won't hit that limit in their lifetime, but it's essential to keep accurate records. Proper documentation helps ensure your estate remains in good standing and avoids surprises down the road.
Not all gifts count toward the annual limit. You can give generously in these areas without worrying about tax rules:
The key here is making the payments directly to the institution or provider rather than giving cash to a family member to make the payments themselves.
Gifting property, like real estate or stocks, comes with a different set of considerations. When you transfer these types of assets, the recipient also inherits your original cost basis. That means if they later sell the asset, they could face capital gains taxes on the entire increase in value since you first acquired it.
Sometimes, passing appreciated assets through your estate may be more beneficial than as a living gift. The rules are complex, which is why professional guidance can make such a difference.
Tax laws surrounding gifts can get complicated fast. What works well for one family might not be the right move for another. Factors like your income, overall estate value, and timing can all affect the best way to structure your generosity. Gifting without a clear plan can create problems you didn't anticipate. On the other hand, a thoughtful strategy can help you support your loved ones while preserving your own financial stability.
If you're thinking about making a large gift or including regular gifts as part of your estate plan, now is a smart time to connect with a CPA. At Myrick CPA, we help you look at the full picture so you can give with confidence.
We'll help you:
You want your gifts to make a difference, not cause stress. With expert tax planning and clear guidance, you can support your family now and in the future while protecting your financial well-being.
Contact Myrick CPA to schedule a consultation and learn how we can help you create a gifting strategy that's as smart as it is generous.