Increase in Gift Limits
The gifting limitation for 2018 has increased to $15,000 per person. This means that you can gift up to $15,000 to any individual (including those outside of your family) without incurring any tax effect. A married couple may elect to split gifts, effectively allowing you to give up to $30,000 to one individual without tax consequences. Gifts totaling above this amount require a gift tax return filing and reduce your lifetime gift exclusion. The lifetime gift exclusion has also increased to $11,180,000, up from $5,490,000, though this increase is set to expire at the end of 2025. Any gifts made above this limit become taxable to the giver. Gifts are a great tool for effective estate planning.