❓ Frequently Asked Questions

The gift tax is a federal tax on transfers of money or property to another person while receiving nothing (or less than full value) in return. The tax applies to the donor, not the recipient.

For 2024, you can give up to $18,000 per recipient without filing a gift tax return. Married couples can give up to $36,000 per recipient by splitting gifts.

The lifetime gift and estate tax exemption is $13.61 million per person for 2024. Gifts exceeding the annual exclusion count against this lifetime limit.

You must file IRS Form 709 (United States Gift Tax Return) if you gave gifts exceeding the annual exclusion ($18,000 in 2024) to any one recipient during the year.

Form 709 is due on April 15th of the year following the gift (same as your income tax return). You can request an automatic 6-month extension.

No, gifts to a U.S. citizen spouse qualify for the unlimited marital deduction and are not subject to gift tax, regardless of amount.

No, payments made directly to educational institutions for tuition or to medical providers for medical care are exempt from gift tax, with no dollar limit.

Gifts exceeding the annual exclusion must be reported on Form 709 and will reduce your lifetime exemption. No tax is owed until you exceed the lifetime limit.

Yes, strategic gifting is a common estate planning technique. Regular gifts using the annual exclusion can transfer significant wealth over time without gift or estate tax.

Keep records of the date, recipient, property description, fair market value, and any appraisals. Retain copies of gift tax returns (Form 709) indefinitely.

No, gifts to qualified 501(c)(3) charities are not subject to gift tax and may also qualify for an income tax deduction.

Gifts are valued at fair market value (FMV) on the date of the gift. For real estate or closely-held business interests, a professional appraisal is recommended.