What is the maximum gift allowed without triggering the gift tax?


Quick Answer

As of 2015, the maximum gift allowed without triggering the federal gift tax is $14,000 per individual each year, with no limit on the number of individuals, according to Bankrate. In addition, a donor can give unlimited amounts to a spouse, charities, political organizations, and educational and medical institutions.

Continue Reading

Full Answer

A donor must make a gift of tuition directly to an educational institution for the gift to qualify under the unlimited gift provision. The provision does not cover room, board, supplies and books, notes Bankrate. A donor paying someone else's medical expenses must give the funds directly to the medical facility to avoid triggering the gift tax. Donors can give away $5 million during their lifetimes without paying gift taxes, not including inflation adjustments.

Learn more about Taxes

Related Questions