IRS Tax Code Section 2503

IRS Tax Code Section 2503 relates to gift tax exclusions. It allows individuals to give a certain amount of money or property to someone else each year without the gift being subject to federal gift tax. As of 2023, this annual exclusion amount is $17,000 per recipient. This means you can give up to this amount to as many people as you wish each year without affecting your lifetime gift tax exemption. Additionally, Section 2503 outlines rules for gifting to minors and specifies that gifts must be made for the benefit of the recipient.