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Gift Limit

By Terry Savage on January 18, 2017 | Financial Planning / Retirement

I understand I can give an amount each year to nieces and nephews without (inheritance or gift tax) and without them having to wait until I pass away. Do I have to make any notification to IRS before moving money to their savings accounts? (Amount $14,000 each?)

Terry Says

No, as long as you stay under the $14,000 limit each year, you have no gift reporting obligation. And you can make as many of these gifts as you want each year to different people.  But I suggest you keep good records of each gift, perhaps recording the check number and date and recipient in a notebook, with a page for every year's gifts.  And, of course, there is no tax or reporting obligation on the part of the recipients.  (Just remember not to give too much away, so you don't run out of money before you run out of time)



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