Gifting Rules for 2025: What You Can Give Tax-Free This Holiday Season
As the holidays approach, many people think about giving gifts to loved ones — money, stocks, property, or other assets. But generous giving can carry unexpected tax consequences if you don’t understand how the federal gift tax rules work. For 2025, the rules have changed — and this year could be a prime opportunity to pass assets to family or friends tax-efficiently.
If you live in Georgia (or anywhere in the U.S.), here’s what you need to know — and how to use 2025’s gift rules to your advantage, legally and smartly.
2025’s Key Gift Tax Rules at a Glance
For 2025, you can gift up to $19,000 per recipient, per year, without triggering a gift tax or needing to file a special return. Kiplinger+2Rudler, PSC+2
If you’re married and you and your spouse both wish to gift the same person, you can combine your exclusions and give up to $38,000 per recipient tax-free (assuming you elect gift-splitting). NerdWallet+1
If you give more than $19,000 to one person in a calendar year, you don’t necessarily owe taxes — but you must file IRS Form 709 (Gift Tax Return). That excess gift is tracked against your lifetime estate and gift tax exemption. IRS+2carolinataxconsultingllc.com+2
For 2025, the lifetime exemption is $13,990,000 per individual (or $27,980,000 for married couples combined) before federal gift or estate taxes apply. FeldmanLawGroup+2Rudler, PSC+2
What This Means for Gifting During the Holidays
Smaller Gifts — Great for Cash, Stock, or Property
If you want to give holiday cash gifts, transfer stock shares, or even move small pieces of property, doing so under the $19,000 threshold per person is the simplest and cleanest way to avoid tax or paperwork complications. This is especially useful if you plan to give to multiple children, grandchildren, nieces/nephews, or other loved ones — each gets their own exclusion.
If you’re married, coordinating with your spouse to “split” gifts can double the benefit. For example, you and your spouse could each gift $19,000 to the same grandchild — for a total $38,000 — all tax-free.
Larger Gifts or Asset Transfers — Use with Strategy
Maybe you own real estate, a business interest, or an investment portfolio you’d like to pass on. These more substantial gifts could exceed the annual exclusion. If so:
File IRS Form 709 to track the gift.
The gift will count toward your lifetime exemption — but at $13.99 M, many families will still be far below the threshold.
Especially in a state like Georgia (or Idaho), gifting real estate or business interests requires careful titling, valuation, and documentation to avoid future disputes or unintended tax consequences.
Non-Traditional Gifts: What’s Often Overlooked
Gifts to your spouse (if they’re a U.S. citizen) generally are excluded from gift tax. NerdWallet+1
Payments made directly for someone’s medical care or tuition may also be excluded — even if they exceed the annual gift limit — provided they go directly to the medical provider or educational institution. Pantana CPA+1
Charitable donations and certain gifts to qualifying charities remain tax-advantaged and often do not count as taxable gifts. IRS+1
Why Georgia Residents (and Those Cross-State) Should Care
Even though gift and estate tax rules are set federally, your state of residence — whether Georgia, Idaho, or another — can shape other aspects of estate planning (such as property laws, state taxes, or probate processes).
If you have children or heirs residing in Georgia, own property there, or are considering relocating, it’s wise to structure gifts carefully. In some cases, gifts of real estate, business interests, or out-of-state assets require special documentation to ensure smooth transfers and avoid unintended tax liability.
Using the 2025 gift rules well can help Georgia (and nationwide) families:
Reduce the size of your taxable estate before death, potentially lowering future estate tax liability.
Transfer wealth to children, grandchildren, or other loved ones now — while retaining flexibility.
Provide immediate financial help or support (college, home down payments, etc.) while leveraging favorable gift tax rules.
What to Watch Out For
If you give more than $19,000 per person (or $38,000 per person with a spouse), you MUST file Form 709 — even if you don’t ultimately owe tax. Failure to file can create problems.
Overuse of lifetime exemption — aggressive gifting strategies should be done thoughtfully, especially if you have other estate planning goals.
Real estate or business interest transfers often involve more than just tax rules — proper titling, valuations, and legal structure matter a lot.
Laws change. While current exemptions are generous, future legislation may alter them.
How to Use This Year’s Gift Rules — Strategically
Make a gifting plan now — especially if you want to help kids or grandchildren with education, a first home, or seed money for a small business.
Coordinate with your spouse (if married) to maximize the gift exclusion per recipient.
Consider non-taxable gifts — like paying tuition or medical bills directly — to extend your giving beyond the $19,000 limit.
Document everything carefully — valuations, deeds, paperwork — especially for real estate, business interests, or stock transfers.
Consult an estate planning attorney (especially if you live in GA or ID, or own out-of-state assets) to make sure your plan is legally sound, tax-efficient, and aligned with your long-term goals.
Want to Get It Right? Let Us Help
At Atkins Law Offices, we’ve guided countless families — across Idaho, Georgia, and beyond — through gift, estate, and tax-planning strategies that align with their goals and protect their future.
If you’re thinking about gifting this holiday season — cash, property, business interests, or investments — let’s talk. We’ll help you understand the implications and structure your gifts so you maximize tax advantages and minimize risk.
Schedule a consultation with Atkins Law Offices today and make your gifts count without unintended consequences.
