Starting in 2013, the annual exclusion amount from gift taxes will increase from the current $13,000 per year to $14,000.
That’s a $14,000 gift per person, per calendar year. In other words, parents can give each child $28,000 per year ($14,000 x 2).
You can give away more than that if you are so inclined to do so, but after the $14,000 annual threshold, you’ll start cutting in to your lifetime exclusion amount. This year the lifetime exclusion amount is $5,120,000, but don’t memorize that number because it expires at the end of 2012 and is likely to be changed as part of the “fiscal cliff” discussions in Congress.
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