The annual gift tax exclusion will increase next year to $15,000, a $1,000 hike over this year’s figure and the first jump since 2013. This pertains to gifts made in 2018.
Thus, you will be able to give up to $15,000 apiece to a child or any other person free of gift tax and without having to tap your $5,600,00 (up from $5,490,000) lifetime estate and gift tax exemption. Your spouse can also give $15,000 to the same donee, making the tax-free gift $30,000. For example, if you are married with three children, you can give up to $30,000 in 2018 to each of your kin without gift tax consequences. You can read more on other updates at the IRS website.
If you have any questions, please reach out to one of our tax professionals.