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.
The IRS allows you to give away a total of $5.49 million during your lifetime before a gift tax is owed (this figure is for 2017). This $5.49 million exclusion means that even if you have to file a Form 709 because you gave away more than $14,000 to any one person last year, you will owe taxes only if you have given away more than a total of $5.49 million in the past.