Gifting: Strategic Planning for Year-End

With the fourth quarter officially underway, now is a smart time for clients to evaluate their year-end gifting strategies and goals. For 2026, taxpayers are entitled to give up to $19,000 per person without gift or estate tax consequences and without tapping into their $15 million lifetime transfer tax exemption. Married couples can give up to $38,000 per person. Gifts can be made in cash or property to qualify for the exclusion. When gifts of property are made, the recipient receives the property with a basis equal to the donor's basis at the time of the gift (and the donor will not incur capital gains tax). Notably, gifts to cover qualifying medical and educational expenses are not subject to the $19,000 cap, provided that they are made directly to the medical provider or educational institution. The $19,000 cap is adjusted for inflation each year--and also resets each year, so that donors are entitled to take advantage of the full annual limit each year, even if they have made gifts in prior years. For more information on the gift tax annual exclusion, visit Tax Facts Online. Read More: Link to Q905.