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What is the basic requirement for a gift to be eligible for the annual exlcusion?

What is the basic requirement for a gift to be eligible for the annual exlcusion?

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Answer #1

The basic requirement for a gift to be eligible for the annual exclusion is that it's value shall not exceed the the threshold limit which is $15,000 per donee in 2018 ($14,000 in 2017).

Here the the limit $15,000 applies to each donee.As long as the gift or gifts given to single donee doesn't exceed the above mentioned limit the donor or taxpayer doesn't need to pay gift tax.

However a tax payer or donor can give as many as gifts to his or her spouse because gift to the spouse will never be a taxable gift even though the value of the gift exceed the annual specified limit.

Hope this is useful anf thank you!!!!

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