By Woods & Durham, Nov 16 2017 08:00AM
As the holiday season approaches you're likely considering giving cash gifts to family or friends. Before you calculate the amount of your gifts, you may want to consider the annual gift tax exclusion of $14,000 to avoid paying gift tax..
This means that both spouses or each individual may give a gift of up to $14,000 to any one individual without having to pay any gift tax.
For example, Dad could give son and son's wife each $14,000 and Mom could also give son and son's wife $14,000 each for a total annual tax - free transfer of cash from Mom and Dad to son and son's wife of $56,000.