*The gift tax is a tax on the transfer of property by one individual to another while receiving nothing, or less than face value, in return. An annual exclusion gift is one that qualifies for the $14,000 per person per year exclusion from federal gift taxes as of 2016. In other words, this is the amount that can be gifted in cash or property value without incurring a gift tax. .
The federal gift tax exclusion for the tax year 2019 is $15,000.
For example, Alicia is 60-years old, and her husband, Tom, is 62-years old. They want to give their daughter, Kathy, $30,000 to help her buy a new car. Alicia can give Kathy $15,000, and Tom can give her $15,000 without exceeding the gift tax exclusion for the year.