re: Friend gave his daughter $275k when she graduated college.

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Great idea, but going to be one hell of a tax bill.

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The gift tax only kicks in after lifetime gifts exceed $11.7 million in 2021

The first thing to know about the federal gift tax is that gift givers—not gift recipients—have to pay it. Thankfully, you won’t owe the tax until you’ve given away more than $11.7 million in cash or other assets during your lifetime. The lifetime exclusion was raised to $11.7 million in 2021.

If you’re married, your spouse is entitled to a separate $11.7 million in 2021. So, actually owing the gift tax is not a concern for most folks. But you may still have to file gift tax returns even though you don’t owe any tax.

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