Which of the choices below accurately represents the 2017 annual gift tax exclusion and the 2017 lifetime gift and estate tax exclusion?
The annual gift tax exclusion for 2017 is $14,000, the same as in 2016. This means you can gift up to $14,000 to as many people as you like during the year without incurring gift taxes. The lifetime gift and estate tax exclusion rose to $5.49 million, up from $5.45 million in 2016. The lifetime exclusion is separate from the annual gift tax exclusion and allows you to leave $5.49 million to heirs free of federal estate and gift taxes. These limits can and do fluctuate on an annual basis, so it makes sense to review them regularly.