If an individual makes annual gifts starting in 2026 and gifts $250,000 to his son in that year, what is the first tax year for which he will have to file a gift tax return?

If an individual makes annual gifts starting in 2026 and gifts $250,000 to his son in that year, what is the first tax year for which he will have to file a gift tax return?

• A. 2026
• B. 2027
• C. 2028
• D. 2029

Answer: (A)

Gifts to a single recipient are covered by the annual exclusion each year. If you give more than that amount to one person in a given year, you must file a gift tax return for that year. Here, giving 250,000 to his son in 2026 clearly exceeds the annual exclusion for 2026, so the first time a gift tax return is required is the 2026 tax year. The amount above the exclusion reduces the lifetime gift and estate tax exemption, but you only owe tax later if total lifetime gifts exceed that exemption. The return you’d file is for the year 2026 (Form 709, due in the following spring).

Gifts to a single recipient are covered by the annual exclusion each year. If you give more than that amount to one person in a given year, you must file a gift tax return for that year. Here, giving 250,000 to his son in 2026 clearly exceeds the annual exclusion for 2026, so the first time a gift tax return is required is the 2026 tax year. The amount above the exclusion reduces the lifetime gift and estate tax exemption, but you only owe tax later if total lifetime gifts exceed that exemption. The return you’d file is for the year 2026 (Form 709, due in the following spring).