In 2026, what is the annual gift tax exclusion per donee for gifts of present interest?

In 2026, what is the annual gift tax exclusion per donee for gifts of present interest?

• A. $19,000 per donee for gifts of present interest.
• B. $38,000 per donee for gifts of present interest.
• C. $15,000 per donee for all gifts, present or future interest.
• D. $5,000 or 5% of the corpus, whichever is greater

Answer: (A)

The main idea here is that you can gift a certain amount to each person each year without paying gift tax or using up your lifetime exemption. For gifts of present interest in 2026, that amount is 19,000 per donee. This means you can give up to 19,000 to one person in a year tax-free and without affecting your lifetime exemption. If you’re married and both give to the same recipient, and you elect gift-splitting, you can exclude up to 38,000 to that person in that year. Note that gifts of future interest do not qualify for this annual exclusion. Any amount over the exclusion would use part of your lifetime exemption or incur gift tax.

The main idea here is that you can gift a certain amount to each person each year without paying gift tax or using up your lifetime exemption. For gifts of present interest in 2026, that amount is 19,000 per donee. This means you can give up to 19,000 to one person in a year tax-free and without affecting your lifetime exemption. If you’re married and both give to the same recipient, and you elect gift-splitting, you can exclude up to 38,000 to that person in that year. Note that gifts of future interest do not qualify for this annual exclusion. Any amount over the exclusion would use part of your lifetime exemption or incur gift tax.