Welcome to 2024, where Americans have even more reasons to embrace the spirit of giving, thanks to the Internal Revenue Service (IRS) upping the ante on gift and estate tax exemptions. In this blog post, we’ll break down the exciting changes that make giving more tax-friendly than ever before.
Annual Gift Tax Exclusion: The Annual Gift Tax Exclusion has taken a leap, allowing individuals to generously gift up to $18,000 per person, with married couples enjoying a tax-free limit of $36,000. It’s the perfect opportunity to spread joy without the worry of taxation.
Lifetime Gift Tax Exemption: In a significant move, the IRS has announced a boost in the Lifetime Gift Tax Exemption to an impressive $13.61 million for 2024. Even if your gift surpasses the annual limit, fear not; no immediate taxes are incurred, as the excess amount simply gets deducted from your lifetime exemption.
Non-US Citizen Spouse: Navigating gifts to non-U.S. citizen spouses? The annual exclusion has risen to $185,000 in 2024, providing more flexibility for international gift-giving endeavors.
Act Now: It’s essential to seize the moment. With the lifetime estate and gift tax exemption set to revert to pre-2017 levels in 2025, now is the time to plan your gift-giving strategy. Maximize the benefits of the current exemptions while ensuring both parties can enjoy the financial advantages while alive.
As we embrace the opportunities that 2024 brings, let’s make the most of the increased IRS exemptions. Whether you’re a generous individual or a thoughtful couple, these changes open up new possibilities for tax-savvy giving. Start planning your gifts wisely, and make 2024 a year of both generosity and financial wisdom. #TaxSavvyGiving #2024Exemptions #FinancialPlanning