In 2024 any individual can give any other individual up to $18,000 of stuff in the calendar year 2024 without any tax implications (no money to pay, no reporting on any tax form).
Then the next year could do the same thing. I’d suggest if a check is written that in the memo section the giver writes “gift” in case the receiver has a visit from the IRS… or some type of documentation indicating a gift.
The giver can give gifts to as many people as he or she desires…. Again up to $18k per person per calendar year without any gift tax implications (No tax, no reporting).
The receiver of a gift of any amount does NOT pay a tax on receiving the stuff. Stuff can be money, cars, property, etc… anything.
Let’s say the gift is $100k. The giver is liable for a gift tax and it is very high.
Instead, if the giver files a gift tax return electing to reduce the amount of the…. Estate tax exclusion when you die…. From the current 2024 $13,610,000.
So, the math is……. $100k gift less $18k = $82k reduction in the estate tax exclusion… reduce the $13,610,000 by $82k.