Annual Exclusion

Filed Under »
Dictionary Says

Definition of 'Annual Exclusion'

The amount of money that may be transferred by gift from one person to another each year without incurring a gift tax or affecting the unified credit. This amount can be transferred in the form of cash or other assets.   
Investopedia Says

Investopedia explains 'Annual Exclusion'

The annual exclusion has no limits on the number of persons that can receive this amount each year. For example the annual exclusion for 2011 was $13,000. This means that a wealthy individual might, for example, gift $13,000 to ten different people in one year without incurring a gift tax. Also, married couples can combine each partner's $13,000 annual exclusion amount to gift up to $26,000 per individual, or up to $52,000 per couple, every year. This gifting strategy is often used to reduce the size of one's taxable estate.

Search results for

'Annual Exclusion'

  • Leaving Inheritance To Children Easier Said Than Done

    http://www.investopedia.com/articles/pf/08/inheritance-for-children.asp
    ... Gifts qualifying for the annual exclusion from gift tax - often called "annual
    exclusion gifts" - are completely tax free and do not require filing a gift tax ...

  • My 80-year-old mother used her Roth IRA assets to make an $11,000 ...

    http://www.investopedia.com/ask/answers/03/111203.asp
    ... Feedback Feedback. My 80-year-old mother used her Roth IRA assets to make an $11,000
    annual gift tax exclusion. Will these still be considered Roth IRA assets? ...

  • Estate Planning: Estate Taxation | Investopedia

    http://www.investopedia.com/university/estate-planning/estate-planning9.asp
    ... Then any taxable gifts are added (ie, cumulative gifts made to individuals that
    exceeded the annual exclusion amount) to arrive at a "tax base". ...

  • Estate Planning Law Changes You Need To Know - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0911/Estate-Planning-Law-Changes-You-Need-To-Know.aspx
    ... In 2010 and 2011, the annual exclusion from gift tax is $13,000, meaning that an
    individual can gift up to $13,000 to as many people as he or she likes ...

  • 529 Plans: Contributions | Investopedia

    http://www.investopedia.com/university/retirementplans/529plan/529plan3.asp
    ... $13,000 can be made for each designated beneficiary without incurring federal gift
    tax in accordance with the annual exclusion applies to gifts to each done. ...

  • Top 7 Estate Planning Mistakes

    http://www.investopedia.com/articles/retirement/08/estate-planning-mistakes.asp
    ... tax on $13,000 of the car's value. The annual gift tax exclusion is $13,000
    in 2011 and 2012. This means that one can give cash ...

  • Tax-Efficient Wealth Transfer

    http://www.investopedia.com/articles/retirement/07/reduce-estate-tax.asp
    ... annual premiums for this policy will cost approximately $250,000 per year, but less
    than 20% ($48,000) of this cost ($12,000 annual gift tax exclusion for each ...

  • A parent would choose to set up a Coverdell Education Savings ...

    http://www.investopedia.com/ask/answers/09/coverdell-education-savings-account.asp
    ... While the contribution is considered a gift, the annual Coverdell contribution limit
    of $2,000 is well under the annual gift tax exclusion of $13,000. ...

  • I sold my house. Can I exclude the gain from my income?

    http://www.investopedia.com/ask/answers/07/taxtiphome.asp
    ... Free Tools; Free Annual Reports. More Features ยป. Personal Finance; ... certain
    requirements. This is referred to as maximum exclusion. If the ...

  • Safe Tax Planning For High-Net-Worth Filers

    http://www.investopedia.com/articles/taxes/09/affluent-tax-planning.asp
    ... Under the Internal Revenue Code, any donor can gift up to five times their annual
    gift exclusion limit into a Section 529 account for a child, as long as ...

Related Articles

Bank Rates
Product Today Last Wk
$10K MMA 0.50% 0.51%
MMA 0.45% 0.46%
6 Month CD 0.46% 0.47%
1 Year CD 0.70% 0.75%
5 Year CD 1.46% 1.46%
1 Year Jumbo CD 0.66% 0.67%
Rate data provided by Bankrate
Product Today Last Wk
$30K HELOC 4.59% 4.60%
$30K Home Equity Loan 5.74% 5.77%
$50K Home Equity Loan 5.45% 5.50%
$50K HELOC 4.24% 4.24%
$100K Home Equity Loan 5.41% 5.46%
$100K HELOC 4.13% 4.13%
Rate data provided by Bankrate
Product Today Last Wk
30 Year Fixed 3.80% 3.80%
15 Year Fixed 3.09% 3.11%
1 Year ARM 3.54% 3.53%
30 Year Fixed Jumbo 4.38% 4.38%
5/1 ARM 2.65% 2.69%
3/1 ARM 2.69% 2.69%
Rate data provided by Bankrate
Product Today Last Wk
60 Month Used Car Loan 4.51% 4.51%
48 Month Used Car Loan 4.35% 4.35%
48 Month New Car Loan 3.24% 3.24%
36 Month Used Car Loan 4.34% 4.36%
36 Month New Car Loan 3.11% 3.13%
60 Month New Car Loan 3.35% 3.34%
Rate data provided by Bankrate
Partner Links