Tax Code Section 2503

Tax Code Section 2503 pertains to the annual gift tax exclusion, allowing individuals to gift a certain amount of money or property to another person each year without incurring gift taxes. For 2023, this amount is $17,000 per recipient. Gifts exceeding this threshold may be subject to gift taxes, but the giver can use part of their lifetime exemption to avoid immediate tax consequences. The section also clarifies that gifts to minors can be made in a way that delays their access until they reach a specified age, ensuring financial management until they are older.