Should I be concerned with the 2011 gift tax limit?

Currently the IRS will allow you to give away up to $13,000.00 annually without having to pay any tax on the gift. This $13,000.00 can be given to one person or any number of people. If you are married, then this amount increases to $26,000.00.

One important thing to remember is that the recipients of your gift will never have to pay any tax on the gift. If the giver of the gift goes above the IRS gift tax limit amount, the giver will pay the gift tax on the gift.

How Much Can I Give In a Lifetime?

You are allowed to give up to one million dollars in gifts above the annual limit in your lifetime without having to pay taxes. This means you need to plan carefully to ensure you do not exceed your annual limit as well as your lifetime limit.

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