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2016 Annual Gift Exemptions
2016 Annual Gift Exemptions
By: Jeffrey M. Fetter
Didn’t win Powerball but still feeling generous? The federal annual gift exclusion remains at $14,000 per donee for 2016. Anyone can gift this amount to each recipient of a gift in 2016 and not be required to file a gift tax return or to use part of their lifetime gifting exemption (increased with the federal estate exemption to $5,450,000 for 2016). A couple can, therefore, make a $28,000 gift to a child or other donee. Remember that gifts include gifts of cash or property and what is sometimes overlooked are gifts to Section 529 education accounts. These count as well. Therefore, it is important to keep track of gifts that are made throughout the year. Also remember, if you do file a federal gift tax return for a year, you must report the annual exclusion gifts on the return as well.
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