How Much Can I Gift My Daughter and Son-in-Law Without Owing Taxes?

Core Insights - The IRS allows individuals to gift up to $18,000 per recipient in 2024 without incurring taxes, with a lifetime exemption of $13.61 million before taxes apply [2][7] - The gift tax rates range from 18% to 40% for gifts exceeding the exemption limits, primarily affecting wealthy individuals [5][7] Group 1: Gift Tax Overview - A gift is defined as a unilateral transfer of money or property without receiving fair value in return [3] - Certain exceptions exist for what constitutes a taxable gift, such as money given to dependents or tuition payments [4] - The gift tax is designed to prevent individuals from avoiding estate taxes by transferring wealth before death [7] Group 2: Annual Exclusion and Future Changes - The annual exclusion limit for gifting is set at $18,000 for individuals and $36,000 for married couples in 2024, increasing to $19,000 and $38,000 in 2025 [8] - The annual exclusion applies separately to each recipient, allowing for multiple gifts without triggering tax implications [8]