President Jimmy Carter, an advocate of the program, said that his mother, who had served as a nurse in the program, had one of the most glorious experiences of her life in the Peace Corps. In 1979, he made it fully autonomous in an executive order.
So a couple will be able to give away $10.86 million tax-free in 2015 (assuming they havenât made prior lifetime gifts). Totally separate from the lifetime gift exemption amount is the annual gift tax exclusion amount. Itâs $14,000 for 2015, the same as 2014, up from $13,000 a year in 2013. You can give away $14,000 to as many individuals as youâd like. A husband and wife can each make $14,000 gifts.
If an adult child gives money to a parent to be used for living expenses, does the maximum tax-free gift rule apply? The IRS allows for monetary gifts of between $1.00 and $14,000.00 to be given to anyone without taxation. This $14,000 maximum gift can be given to anyone, including parents, children or those who you aren't related at all, and no tax liability will be incurred. However, the reason for the gifting has no relevance to the IRS, so long as the gift is given individually and not exceeding the maximum limit for that year. If your gift exceeds that maximum amount, tax may be assessed on it, even if the money is to your elderly parents for living expenses.