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.
How To Use the Gift Tax Exemption. As mentioned before, up to $13,000 can be given to one person. That number increases to $26,000 if filing joint, but each spouse will have to file form 709 for gift splitting. The maximum only applies to one person at a time, not one person only. For example, you have three children you want to give $10,000 each to. Each child can each receive the amount and you, the person giving the gift, will not incur any tax.