Annual Gift Tax Exclusion Up to $14k in 2013
The IRS will increase the annual gift tax exclusion from $13k to $14K in 2013. The annual gift tax exclusion is the amount you and your spouse can each gift to anyone without dipping into your lifetime gift tax exclusion (the lifetime gift tax exclusion is currently $5,120,000 and scheduled to drop to $1M in 2013). From Forbes:
There is one change taking effect in January 2013 that’s new: the annual gift tax exclusion. The annual gift tax exclusion amount, which is adjusted annually, will be $14,000 for 2013, as announced by IRS last week (it won’t be in hard copy until it hits the Internal Revenue Bulletin 2012-45 on Nov. 5, 2012). That means that taxpayers can make gifts of up to $14,000 per person in 2013 without any federal gift tax consequences (and yes, the per person qualifier means that you can gift up to $14,000 each to one person or a million people without owing a penny in federal gift tax).
As to what else is to come? You tell me… Your guesses?