Submitted By: Dave
Answered: September 3, 2013 8:30 am

How much can I give my children as a gift in 2013 without having to pay any gift tax?

The annual exclusion for 2013 is $14,000 per recipient. This amount is doubled if you are married and your spouse consents to split the gift. If your children are married, you can effectively multiply the tax-free gifts by giving gifts to spouses. And you can apply your lifetime gift tax exemption amount ($5.25 million in 2013) to transfer even more tax free. Bottom line: You can make sizable gifts tax free, but talk with a tax or financial advisor to determine the extent of your generosity.

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Tax Glossary

Assessment

The IRS action of fixing tax liability that sets in motion collection procedures, such as charging interest, imposing penalties, and, if necessary, seizing property.

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