4 ms·

I believe that is not the case for amounts below $13k. See http://www.nolo.com/legal-encyclopedia/article-30095.html http://www.nolo.com/legal-encyclopedia/arti

• pg 16y ago
  Yes, there's an exemption. I'm talking about a marginal dollar, as he is.
  • pingswept 16y ago
    If by "he," you mean Mankiw, I agree. But I think you probably mean mikeryan. I don't think he was talking about a marginal dollar. His point was that the first $12k ($13k in 2010) gifted are taxed differently than dollars beyond that threshold. I suppose the real question is the relative importance of the behavior at the margin versus the behavior for the first dollar. For the ultra-rich, $13k is obviously irrelevant, but for someone near the $250k annual income threshold like Mankiw, I don't think it is. The present value of $12k per year given every year for 30 years is substantially larger than the same amount invested and then hit by estate tax at year 30.
    • pg 16y ago
      I mean Mankiw.
• lotharbot 16y ago
  It's $13k per person (giver and receiver) per year. Additionally, there's a $1 million lifetime exemption (for the giver) which is only cut into once you pass the $13k/year limit.
• ivankirigin 16y ago
  Fun fact: that $13K limit can actually be a lot bigger. That is the limit from one person to another. Mom gives daughter $13K, mom gives son-in-law $13K, Mom gives kid #1 $13K, dad gives daughter... Not a good way to rid yourself of millions, obviously.