Summer is often a popular season for major life milestones. Across the country, proud parents, grandparents, relatives, and friends are celebrating graduations and weddings, and some are sending hefty financial gifts.
But every year, questions loom about how much gifting results in IRS scrutiny.
The good news? The annual gift tax exclusion currently sits at $19,000 per person. But what actually happens if you exceed that threshold? And does the federal government even track these things?
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Take this quick quiz to see if you can outsmart common gift tax misunderstandings and earn a perfect score.
Please note that this quiz has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or financial advice.
Navigating the complexities of the lifetime estate exemption and annul gift exclusion often requires a personalized approach. That's why it's important to consult your own tax and financial advisors with questions or concerns about any transactions.