What happens if a gift exceeds the $18,000 limit for 2024?

If a gift exceeds the $18,000 limit for 2024, that does not automatically trigger the gift tax. Also for 2024, the IRS allows a person to give away up to $13.61 million in assets or property over the course of their lifetime and/or as part of their estate.

How much is a 2024 gift tax exemption?

In addition, the estate and gift tax exemption will be $13.61 million per individual for 2024 gifts and deaths, up from $12.92 million in 2023. This increase means that a married couple can shield a total of $27.22 million without having to pay any federal estate or gift tax.

What is the annual gift tax exclusion?

The annual gift tax exclusion is a set dollar amount that you may give someone without needing to report it to the IRS. The threshold is typically adjusted to account for inflation each year. The IRS announced that the annual gift tax exclusion will be $18,000 in 2024, up from $17,000 in 2023.