What are the Gift Tax Exemptions?

gifts tax

Any time you give someone money or property you may be subject to paying a gift tax. The federal government has established guidelines for gift tax exemptions and gift tax rates for all property transferred.

Starting in 2006 the IRS determined that gifts under $12,000 per year were exempt from federal gift tax, which is an increase from the $10,000 limit set for years prior. If you give a gift valued over this amount your gift will be taxed at the current gift tax rate of eighteen percent. Federal gift tax laws also state that there is a lifetime deduction amount of $2 million.
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