Tax On Gift 

Valentine’s Day just around the corner, you might be considering gifting something special. Check Federal Gift Tax Related Rules.

Gift tax rates are based on the size of the taxable gift and can range between 18% and 40%

Rate of Gift Tax

The Gift tax is only triggered on annual gifts above $17,000 for 2023.Limits are per recipient.

Annual Exclusion Limit

If you’ve given a gift that exceeds the annual exclusion Limit but is still under the lifetime maximum, then report it, but no tax on it. ($12.92 million in 2023)

Life Time Exclusion

An unlimited amount can be gifted tax-free if the spouse is a U.S. citizen. No Annual/Life Time exclusion Limit

Gift To spouse

Tax-free gifts are limited to an annually adjusted value—$164,000 in 2022 and $175,000 in 2023.

If Spouse Not US Citizen

As defined by the Internal Revenue Service (IRS), a spouse refers to an individual's legally married husband or wife

Spouse Meaning

Normal Exclusion Limit of $17000 in a year and Life time $12.92 Million applicable to your Loved One.

Gift to Other than Spouse

Gift tax can impact the gifts you give on Valentine's Day, it doesn't have to put a damper on your celebration of love

Enjoy Valentines Day

Ensure that you're making informed decisions about your gifts is to consult with a tax professional

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