The Internal Revenue Service recently announced the 2024 cost of living adjustments for the estate and gift tax exclusion amounts.
Gift Tax Exclusion Amount
The Gift Tax Exclusion Amount is the amount an individual may gift to any number of persons annually without incurring a gift tax or reporting obligation. The Gift Tax Exclusion Amount will increase from $17,000 to $18,000 in 2024 (a combined $36,000 for married couples). The Gift Tax Exclusion Amount renews annually, so an individual who gifted $17,000 to someone in 2023 may gift $18,000 to that same person in 2024, without any reporting obligation. However, any gift above $18,000 in 2024 must be reported to the IRS by the person making the gift.
