Q: Are gifts taxable?

A: Gifts are never taxable to the recipient, but they could be taxable to the gift giver. The current annual gift tax exclusion limit is $15,000. You can give away up to this amount to as many people as you would like each year without any taxes or reporting requirements.

Each person also has a lifetime federal estate tax exclusion, which is $11.7 million as of 2021. You can give more than the $15,000 to any person any time if you elect to use up a portion of your lifetime exclusion. To do this, you need to file tax form 709 to let the IRS know. There are some other considerations and exemptions, so for more detail, read: Gifting and Taxes.