I know the maximum amount that can be given to a relative tax-free is $10,000 per year. Can someone give 10,000 in December, then another 10,000 in January?
2006-08-27 08:02:00 · 4 answers · asked by kenny_scarface 4 in Business & Finance ➔ Taxes ➔ United States
$12,000 for 2006
2006-08-31 06:25:53 · answer #1 · answered by Tanya E 2 · 0⤊ 0⤋
The annual gift tax exclusion for 2005 was $11,000. That figure is indexed for inflation but only changes in multiples of $1,000. The specific answer to your question is yes as to gifts in December of one calendar year and January of another calendar year. Also the gift does not need to be to a relative.
2006-08-27 15:39:50 · answer #2 · answered by ? 6 · 0⤊ 0⤋
mathew is right, but don't forget that if you are married it is $11,000 per spouse. So a couple could give $22,000 (eleven a piece) on December 31 and January 1.
2006-08-27 16:16:50 · answer #3 · answered by Molly 6 · 0⤊ 0⤋
i think there's a lifetime amount of 1 million that you can give out tax free... after that you have to pay gift tax...
well correct me if i'm wrong
2006-08-29 00:58:10 · answer #4 · answered by bbbryan14 2 · 0⤊ 0⤋