The annual gift tax exclusion of $18,000 for 2024 is the amount of money that you can give as a gift to one person, in any given year, without having to pay any gift tax
This is more than I remember, but I think I’m confusing it with the $6000 limit for contributions to an IRA account. I think it went up to $7000 this year, but I digress.
That’s not the limit where they tax a gift, that’s the limit for where you have to report a gift. You only pay taxes when your lifetime total goes above 12.92 million. Obviously, almost no one hits that, so gift taxes almost never matter.
If anyone is looking for the gift tax limit I got the above quote from https://smartasset.com/retirement/gift-tax-limits
This is more than I remember, but I think I’m confusing it with the $6000 limit for contributions to an IRA account. I think it went up to $7000 this year, but I digress.
That’s not the limit where they tax a gift, that’s the limit for where you have to report a gift. You only pay taxes when your lifetime total goes above 12.92 million. Obviously, almost no one hits that, so gift taxes almost never matter.