Here's a summary of the disparities:

Gross amount of gift :The total value of the gift given is known as the Gross Amount without considering any exclusions or exemptions. It encompasses cash, property, or other assets that have been transferred to another person.

Taxable gift: When applying exclusions (like the annual gift tax exclusion), the remaining portion of the gift that exceeds the exclusion amount is considered taxable. It is the giver's responsibility, not the recipient's, to pay any gift tax. Additionally, there is an annual exclusion—for 2025, individuals can gift up to $19,000 per recipient without triggering gift tax.

Non-Taxable Gift: The IRS offers a lifetime gift tax exemption, which allows people to give a certain amount over their lifetime without paying gift tax. The exemption amount is set to be $13.99 million in 2025.

In addition, there is an annual exclusion that allows individuals to gift up to $19,000 per recipient without incurring gift tax in 2025.

Are you interested in exploring methods for efficient gifting that reduce tax liability? Creating gifts that maximize benefits can be done in a variety of ways.