The IRS has increased the annual gift tax exclusion to $15000 for each of the recipient in 2018 from $14000 due to inflation. A husband and wife can each make $15,000 gifts.
Here,
a) Patel being single gifted 6 grandchildren $30000 each in 2018:
Total Gift 6X30000 = 180,000
Total Exclusion 6X15000 = 90,000
b) Patel being married can claim exclusion with his wife, where both will get the exclusion limits to $15000 per recipient
Patel Exclusion 6X15000 = 90,000
Wife's Exclusion 6X15000 = 90,000
Total Exclusion together 180,000
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Tax Drill Gift Splitting Answer the following regarding the gift tax exclusion. a. Patel is single and gives each of his six grandchildren $30,000 this year (2018). Patel's gift tax exclusion is b. Assume Patel is married and elects to gift-splitting with his wife. Patel's gift tax exclusion is Feedback