Don’t Wait Until It’s Too Late

As 2022 comes to a close, consider making annual exclusion gifts before the end of the year.

The annual gift tax exclusion is currently set at $16,000 (set to increase to $17,000 in January 2023), which means one can give any number of people up to $16,000 each in a single year (or double that amount if one is splitting gifts with a spouse), without incurring a gift tax or exhausting any lifetime exemption.

In the future, think about making gifts earlier in the year to reduce appreciation and income in your estate.

Interesting research on the topic here from Northern Trust Corporation: The Power of Early: The Annual Gift Tax Exclusion

Thank you to Azi Baer for this week’s Tax Tracker post.