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.
However, if you gave $14,000 to Friend A, but $15,000 to Friend B, you would then be taxed on that $1,000 gift to Friend B. (So, as you can see, unless youâre regularly throwing around five-figure gifts, the gift tax limitations will exclude the gifts most of us give and receive).13,000 given by your father to you in one year is not taxable and does not have to be reported to the IRS. If he gives you more than $13,000 in a year, that âmoreâ is reportable (by your dad) on Form 709. Reportable is not the same as taxable.