How many times in my whole life can I give a gift to my son if it does not exceed 5 millions?
If you gift more than the exclusion to a recipient, you will need to file tax forms to disclose those gifts to the IRS. You may also have to pay taxes on it. If that’s the case, the tax rates range from 18% up to 40%. However, you won’t have to pay any taxes as long as you haven’t hit the lifetime gift tax exemption.
For the year the IRS allows you to gift up to $11.2 million over your lifetime without having to pay gift tax.
So let’s say that in 2018 you gift $210,000 to your daughter. This gift is $185,000 over the annual gift exclusion. That means you will need to report it to the IRS. However, you won’t immediately have to pay tax on that gift. Instead, the IRS deducts that $185,000 from your lifetime gift tax exemption. Assuming you have never made any other gifts over the annual exemption, your remaining lifetime exemption is now $11 million ($11.2 million minus $185,000).
You start paying the gift and estate tax once your lifetime amount of gifts to all persons goes over the $5.4 million limit. You have to file a gift tax return to report every gift of more than $14,000 per person per year so the IRS can count it against your lifetime exclusion.
If your estate is 4,000,000 when you die, the taxable estate is zero (4,000,000 - 4,500,000).
Hope this helps.
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