Money transfer for sons

[moscosamykaill]

How much is the annual limit for a tax free money transfer from me to my son who is over 21 years old?

[Vanessa A · Accepted solution]

The annual exclusion for 2024 is $18,000. 

[Bsch4477 · Accepted solution]

For 2024, the annual gift tax limit is $18,000. (That's up $1,000 from last year's limit since the gift tax is one of many tax amounts adjusted annually for inflation.) For married couples, the combined 2024 limit is $36,000.

Understand that you can give much more but will then have to file form 709. Since the gift/estate tax is over 12 million dollars you don’t have to worry about paying taxes on the gift. 

[moscosamykaill]

Thanks for your prompt and clever response Vanessa, just to reconfirm if my son doesn't have to pay taxes on the monetary gift he will receive from me? thanks

[Vanessa A]

No.  He does not have to pay the taxes on a gift.  Even if you transfer him $500,000, he would not pay the taxes, you would if you went over your lifetime exclusion which was $12.92 million in 2023. 

Gift Tax Made Simple