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I am giving away large amounts of money, is it true you can give up to 14000.00 without IRS involvement?

Evans, CO |

even if it is to people in the same family?

Thanks!

Attorney Answers 3


  1. Yes, this is the rule for 2013. In 2012, the limit/exclusion was $13,000.

    You can give up to $14,000 per recipient without filing a gift tax return. A higher gift would require filing a gift tax return, Form 709, but you would be unlikely to owe tax due to a lifetime gift exclusion, currently equal to a little over $5 million. Consider speaking with a licensed tax professional to help plan your gift-giving.

    Robert Hoffman is a tax attorney licensed in California. The information presented here is general in nature and is not intended as a substitute for legal advice. This posting does not create any attorney-client relationship with the author. For competent advice about your particular situation, consult your own attorney.


  2. Yes. You are indeed correct that the federal government increased the gift tax to $14,000 this year. That is $14,000 to each individual person you gift to. So, you could give $70,000 to each member of a five member family. Wow, you are indeed kind and generous. People like you are few and far between in this day and age. You should be very proud of yourself. Also, don't forget write-offs if you decide to give to a non-profit organization like the Dumb Friends League, Relay for Cancer, or some other non-profit. It will give you a great tax break. Thank you and best wishes.

    The information provided in this answer does not create an attorney-client relationship and is not considered to be legal advice. Mr. Leroi answers questions on Avvo because he strongly believes in public service from his years as a judge, magistrate, and prosecutor. If you need to ask any follow up questions because my answer did not fully address your question, feel free to call Chris or post an additional question. Thank you.


  3. Yes. Under current federal gift tax law, an individual may give up to $14,000 to a gift recipient without filing a gift tax return. The amount ($14,000) is an "annual exclusion" of smaller gifts. While the amount is fixed, the number of gifts is not. In theory, you could give $14,000 per person to any number of people (related or not), limited only by your total amount available to gift away.

    If you are married, your spouse can also gift $14,000, effectively doubling the amount you can give away.

    If, after you have used up your entire annual gift tax exclusion amount, and your spouse has used us all of his/hers you have not yet reached your giving limit or desire, you can give more without paying gift tax using other gifting strategies.

    What ever your ultimate goal vis-a-vis gifting, make sure you consult with an experienced estate tax attorney to explore all of your gifting options. Remember, that reporting a gift to the IRS is not necessarily a negative thing.

    Disclaimer: My answer is provided without all relevant facts, let alone your unique objectives. No attorney-client relationship is hereby created as a consequence and you should not take (or not take) any action based on my answer. I highly recommend that you consult with competent legal counsel before deciding to take or not take any action, as every situation is more complex than it appears.

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