Understanding Gift Taxes: Can You Gift Your Brother a Million Dollars?

Learn about IRS gift tax rules and how much you can gift without penalties. Find out about the annual and lifetime limits for gifts.

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Yes, you can give your brother a million dollars. However, it’s important to note that the IRS has a gift tax. For 2023, you can give up to $17,000 per year to an individual without it counting against your lifetime gift tax exemption, which is $12.92 million for 2023.

FAQs & Answers

  1. What is the annual gift tax exclusion for 2023? In 2023, you can give up to $17,000 to an individual without triggering the gift tax.
  2. What is the lifetime gift tax exemption? The lifetime gift tax exemption for 2023 is $12.92 million, meaning you can gift that amount over your lifetime without incurring gift tax.
  3. Can I gift more than $17,000 to one person? Yes, you can gift more than $17,000 to one person, but any amount over that will count against your lifetime gift exemption.
  4. Do I have to report a gift to the IRS? If your gift exceeds the annual exclusion amount, you are required to report it on IRS Form 709.

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