Gift Tax in 2021: How Much Can I Give Tax-Free?
Many people don't realize that the federal government charges taxes on gifts. That's because of a provision that allows people to give up to a certain amount each year without any gift tax consequences at all. That annual gift-tax exclusion amount, which remains unchanged at $15,000 for 2021, keeps all but the most lavish gift givers from having to worry about the IRS with their typical holiday practices.
As you'll see below, though, even if you make a gift of more than $15,000, you usually won't have to pay any gift taxes right away. The system governing gift tax is tricky to understand, but below, we'll explain how it works and what you have to do to avoid it, if possible.
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Source Fool.com
