Question

Your married miserly grandfather has never given anything to anyone except dear grandma. He asks the most amount he can gift you and your three siblings in total during the tax year 2018 and not be required to pay any gift taxes. Which of the following is correct? a. $11,180,000 b. $120,000 c. $60,000 d. $11,300,000

Answer 1

Answer is (c) $60,000 as $15,000*4 Grandchilds.

The annual exclusion applies to gifts to each donee. In other words, if you give each of your children is $15,000. The IRS allows every taxpayer is gift up to $15,000 to an individual recipient in one year. There is no limit to the number of recipients you can give a gift to. There is also a lifetime exemption of $11.58 million. Even if you gift someone more than $15,000 in one year, you will not have to pay any gift taxes unless you go over that lifetime gift tax limit.