Taxes on gifts is one of the most misunderstood tax concepts. Neither the giver or the receiver of a gift ever owes any income tax. And, Federal estate taxes don't start until your estate exceeds $13.61 million in 2024. If you give one recipient more than $18,000 in 2024, you must file a gift tax return, but you do not owe any tax. The only purpose for filing the return is because gifts exceeding $18,000 will reduce the lifetime exclusion of $13.61 million. If you give less than $18,000, you don't need to do anything.
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