2013 Gift Tax Exclusions

In Revenue Procedure 2012-41 the IRS announced the annual gift tax exclusions for 2013. The 2013 annual gift tax exclusion amount for a gift to a non-spouse increased for the first time since 2009 ($13,000) to $14,000 per gift. Thus, a taxpayer can give up to $14,000 to an individual (other than their spouse) in 2013 without having to file a Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return.

The annual gift tax exclusion amount for gifts made to a spouse who is not a U.S. citizen will increase from $139,000 in 2012 to $143,000 in 2013. Thus, a taxpayer can give up to $143,000 to their non-citizen spouse in 2013 without having to file a Form 709.

As always, gifts to a spouse who is a U.S. citizen will remain exempt from gift taxes due to the unlimited marital deduction.

REMEMBER: If you make a gift in 2013 that has a value over the annual exclusion, then you must file a Form 709. Even though no gift tax will be owed if you still possess a sufficient amount of your gift tax exemption (currently $5.250 million dollars).