Examples of el cheapo in a sentence. took an el cheapo vacation, staying at a friend's cabin the whole time.
Exclusions. The entire $50,000 you give isn't vulnerable to taxation. The IRS allows exclusions, a dollar limit you can give away tax-free. As of the 2012 tax year, the exclusion amount is $13,000 for each person you make a gift to. If you're married, you can double that: you and your spouse are each entitled to give away $13,000 per person.
For an update, see my Oct. 30, 2014 post, âIRS Raises Limit On Tax-Free Lifetime Gifts For 2015.â. The yearly limit on how much we can each give another person without having to worry about gift tax in 2013 is $14,000. This limit, known as the annual exclusion, will not be increased for inflation in 2014. Spouses can combine their annual exclusions to double the size of the gift.