What is an Annual Exclusion?
An annual exclusion is a type of tax exemption that allows persons to gift other persons with assets up to $10,000.00 US Dollars (USD) without either party having to incur the requirement to pay the standard federal gift tax. There are some specific regulations that control whether or not any gift may properly be classified as an annual exclusion. Here is how the process of annual exclusion works. An individual is allowed to provide an unlimited amount of exclusions to other people. However, the amount of gifts received by any one recipient cannot exceed the $10,000.00 USD figure. Also, the donor cannot have any type of control on how the recipient uses the gifts. They must be given freely, with no types of qualifications on how the gift is to be used by the recipient. Along with this no strings attached approach to the gift, the assets must quality as being of present interest. That is, the receiver of the gift must be able to make immediate use of the gift in whatever manner he or sh
