What is the maximum gift amount an individual can give to another person in 2024 without being subject to taxes?
A. $25,000
B. $18,000
C. $10,000
D. $15,000
Answer (2)
The problem requires identifying the maximum tax-free gift amount for 2024.
The IRS sets the annual gift tax exclusion at $18,000 for 2024.
Comparing this amount with the given options, the correct answer is $18,000.
Therefore, the maximum gift amount is $\boxed{ 18,000} .
Explanation
Understanding the Problem We are asked to identify the maximum amount of money an individual can gift to another person in 2024 without incurring gift taxes. This amount is determined by the IRS and is called the annual gift tax exclusion.
Identifying the Gift Tax Exclusion The IRS sets an annual gift tax exclusion, which is the amount one individual can gift to another without needing to pay gift taxes. For 2024, this amount is $18,000.
Comparing with the Options Now we compare the 2024 gift tax exclusion amount, which is $18,000, with the options provided in the question.
$25,000
$18,000
$10,000
$15,000
Final Answer The option that matches the 2024 gift tax exclusion is 18 , 000. T h ere f ore , t h e ma x im u m g i f t am o u n t anin d i v i d u a l c an g i v e t o an o t h er p erso nin 2024 w i t h o u t b e in g s u bj ec tt o t a x es i s \boxed{ 18,000} .
Examples
Imagine you want to help your niece with her college tuition. The annual gift tax exclusion allows you to gift her a certain amount each year without having to pay gift taxes. This is useful for estate planning, helping family members financially, or supporting charitable causes. For instance, if the gift tax exclusion is $18,000, you can give your niece up to $18,000 each year to help with her tuition without incurring any gift tax implications. This way, you can directly support her education while managing your financial responsibilities effectively.
The maximum gift amount an individual can give to another person in 2024 without being subject to taxes is $18,000, as set by the IRS. This amount is known as the annual gift tax exclusion. Therefore, the correct answer is $18,000 .
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