Gift taxes and exclusions

Gifts of any sizable amount have tax consequences to the giver, as well as the receiver. Each of us is considered, by the tax folks, to have a yearly dollar amount, above which tax must be paid on a gift that is bestowed upon anyone. This amount is known as the Annual Gift Tax Exclusion. It is the same for everyone, regardless of income or financial situation, but it has increased over the past twenty years:

  • 1997-2001: $10,000  
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