2025 Gifting Updates

The IRS has announced an inflation adjusted increase in the gift tax limits for 2025! Despite the minimal change, we feel it is important to announce since gifting is a part of many clients’ financial plans. 

2025 annual gift tax exclusion: $19k/person (up from $18k/person in 2024)

• If married, a spouse can also gift $19k to the same person which means you could gift $38k/person without having to file a gift tax return!

Here’s an important part of this limit to remember. If you wish to gift MORE than the exclusion, you certainly can. You would just then be required to file an extra form in your tax return that applies that excess to your lifetime gift tax exclusion. 

For, 2025 the lifetime gift tax limit increased to $13.99 million (up from $13.61 million in 2024)

• Once again, this amount is doubled if you’re married and this amount is the same for the annual estate tax exemption

This annual lifetime gift tax limit is set to expire at the end of 2025 along with the 2017 Tax Cuts & Jobs Act and the estimated amount is expected to be cut in half (~$6.9 million). Congress could choose to permanently adopt the current amount before the expiration date but there’s no current indication whether that will happen or not.

If you’d like to discuss what this means to you and your financial goals, feel free to reach out as we’d be happy to go through this!

Source:

https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2025

Investment advice offered through Great Valley Advisor Group, a Registered Investment Advisor. Great Valley Advisor Group and Haas Financial Group are separate entities. This is not intended to be used as tax or legal advice. Please consult a tax or legal professional for specific information and advice.

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