Now open: Africaâs first underwater hotel room. Okay, hotel room might be a slight understatement, as this place is more like a three-story private island: Catch rays on the top deckâs cushy daybed, chill out in the dining/ living area on the water deck, and sleep with the fishes. Depth: 13ft.
That means that in 2016 you can bequeath up to $5 million dollars to friends or relatives and an additional $5 million to your spouse tax-free. In 2017, the federal gift tax and estate tax will be combined for a total exclusion of $5 million. If you give away money, that will lower your lifetime taxable estate. Gifts that exceed the yearly exclusion also lower your overall estate tax exemption. Based on the example above, the same gifts would lower your lifetime estate tax exemption by $24,000. Gifts under $13,000 do not affect your estate tax exemption.
In other words, if you aren't paid back, at least not fully, it's a gift. In 2014, you can give a lifetime total of $5.34 million in taxable gifts (that exceed the annual tax-free limit) without triggering the gift tax. Beyond the $5.34 million level, you would actually have to pay the gift tax.f you give people a lot of money, you might have to pay a federal gift tax. But the IRS also allows you to give up to $14,000 in 2014 to any number of people without facing any gift taxes, and without the recipient owing any income tax on the gifts.