This is a link I read, but I want to make sure I understand it correctly.
https://blog.taxact.com/gift-tax-cal...gift-tax-free/
My wife has a large amount of money that she wants to give to her son ($19,000+). She received the money from her father's Will in 2005. Been sitting in the bank since.
After reading this online, it seems she wouldn't have to pay taxes and the amount would be reported and contributed to her lifetime exclusion amount.
* The gift giver pays any gift tax owed, not the receiver.
* You don’t have to report gifts to the IRS unless the amount exceeds $18,000 in 2024 (increasing to $19,000 in 2025).
* Any gifts exceeding $18,000 in a year must be reported and contribute to your lifetime exclusion amount of $13.61 million.
* You can gift up to $13.61 million over your lifetime without paying a gift tax on it (as of 2024).
Am I reading this correctly?
Thanks! Tony