How can I avoid gift tax when giving gifts?

How can I avoid gift tax when giving gifts?

To avoid gift tax, you can give gifts under the annual exclusion limit, which is $17,000 per recipient for 2023.

What if I want to give more than that amount?

If you want to give more than the annual exclusion, consider spreading the gift over multiple years or using the lifetime exemption.

What is the lifetime exemption amount?

The lifetime exemption amount is $12.92 million for 2023, meaning you can give away that amount over your lifetime without incurring gift tax.

Are there any exceptions to the gift tax rules?

Yes, certain gifts like tuition payments or medical expenses paid directly to the provider are exempt from gift tax.