YOU CAN GIFT UP TO $17,000 IN 2023

If you are considering as part of your estate planning gifting money to a friend or loved one, the annual gift tax exclusion is $17,000 in 2023 (up from $16,000 in 2022). As a result, you can give up to $17,000 to as many people as you want in 2023 without having to worry about paying the federal gift tax; nor would you have to file a gift tax return. And if you're married, your spouse can also give $17,000 to the same people. Between you and your spouse, that is a total of $34,000 per person in 2023.

If you do give more than $17,000 to anyone in 2023, and no exemption applies, then you'll have to file a federal gift tax return (IRS Form 709). But that doesn't necessarily mean you'll owe any tax, because under the lifetime gift tax exclusion, for 2023 you can gift up to $12.92 million (up from $12.06 million for 2022). And, again, if you're married, the lifetime limit is double, just like the annual limit.

If you intend to gift money to someone, please contact us at 310.714.7034 or info@nicolailawfirm.com. We can advise you on your gifts and also help you prepare appropriate, formal letters that should accompany your gifts. (More about what language a gift letter should contain in a separate article.)

https://www.adamnicolailaw.com/post/letters-to-write-to-recipients-when-you-are-gifting-money

Happy gifting!

Information contained in this Memo is intended for informational and educational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney. It is likely considered advertising.