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Submitted By: Larry
Answered: January 29, 2016 12:01 pm
Answered: January 29, 2016 12:01 pm
If I give my sister a gift of $14,000, do I have to wait until after April 15, 2016, to make another tax-free gift?
No. You can give each person up to the annual exclusion amount ($14,000 in 2015 and 2016) without any gift tax, or even the need to file a return. A person can make one gift on December 31, 2015, and another on January 1, 2016. However, there is no carryover of an unused exclusion amount. Thus, not making gift in 2015 does not increase the gift limit for 2016.
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Tax Glossary
Private letter ruling
A written determination issued to a taxpayer by the IRS that interprets and applies the tax laws to the taxpayer’s specific set of facts. A letter ruling advises the taxpayer regarding the tax treatment that can be expected from the IRS in the circumstances specified by the ruling. It may not be used or cited as precedent by another taxpayer.
