Pat and John want to reduce the size of their by gifting their four grandchildren and two children the maximum tax free amount per year for the next five years.How much can they gift,tax free,each year?

Question

Quizplus · Accepted Answer

As of the last update in 2023, the annual gift tax exclusion allows an individual to gift up to $15,000 per recipient without having to pay gift tax or report the gift to the IRS. For a married couple, this amount doubles to $30,000 per recipient because each spouse can gift $15,000. Pat and John can therefore gift $30,000 to each of their six relatives (four grandchildren and two children) every year. Multiplying $30,000 by 6 equals $180,000, which is the total amount they can gift tax-free each year.

Pat and John Want to Reduce the Size of Their