The annual exclusion on the federal gift tax will increase to $16,000 in 2022 from 2018 to 2021 the exclusion was $15,000. The general rule is that any gift is a taxable gift, except for:
- Gifts that is not more than the annual exclusion for the calendar year.
- Tuition or medical expenses you pay for someone (the educational and medical exclusions).
- Gifts to your spouse.
- Gifts to a political organization for its use.
In addition, gifts to qualifying charities are deductible from the value of the gifts made. Contact experienced New York estate planning attorneys Friedman & Ranzenhofer, PC at (585) 484-7432 to prepare your estate plan and protect your assets.