Gift Tax Annual Exemption Amount for Tax Year 2012

For tax year 2012, the annual gift tax exemption remains at $13,000. Therefore, the first $13,000 of gifts to any one person is NOT included in the total amount of taxable gifts.

You can give gifts to a spouse who is NOT a citizen of the United States up to $139,000 (other than gifts of future interests in property) and exclude them from the total amount of taxable gifts.

NOTE: If you are a U.S. person RECEIVING aggregate foreign gifts exceeding $14,723, you must file an information return with the IRS.

NOTE: The annual gift tax exclusion amounts do NOT apply to gifts of a future interest. For example, a gift of a "remainder interest."

For 2012, a person can generally make lifetime gifts (above the exemption amount) totaling $5,120,000 without incurring gift tax.

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