Submitted By: RC
Answered: November 18, 2014 8:30 am

What is the most I can give to any person?

The law doesn’t put a cap on generosity. However, when gifts to an individual exceed a certain amount, you’ll have to deal with federal gift taxes. In 2014, you can give up to $14,000 per individual (if you’re married and your spouse consents, you can double this amount). This dollar limit, called the annual gift tax exclusion, isn’t cumulative so if you didn’t use it in 2013, you don’t get any added limit in 2014. If the gift exceeds the exclusion, you can apply your lifetime exemption amount ($5.34 million in 2014), but this reduces the exemption your estate can take when you die.

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Tax Glossary

Carryback

A tax technique for receiving a refund of back taxes by applying a deduction or credit from a current tax year to a prior tax year. For example, a business net operating loss may be carried back for two years.

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