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The annual gift tax exclusion allows individuals to give up to $15,000 tax-free to a single recipient
The annual gift tax exclusion allows individuals to give up to $15,000 tax-free to a single recipient."
So may I interpret this as one donor can giveaway up to $15,000 just to one person?
Or a donor can giveaway up to $15,000 to everyone? (like up to $14,999 and then gift tax exclusion would reset to $0?)
Expert Solution
Donor can give up to the annual exclusion amount ($15,000 ) to any number of people in a year, without facing any gift taxes.
It also does not effect on your life time gift tax exemption amount (For 2020 it is 11.58 Million).
If you pay $ 20,000 to any one then either you need to pay gift tax on $ 5,000 or it will be deduct from your life time exemption amount.
Hope given answe will sovle your query.
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