Yes ... it is $12,000 the same for each spouse. That $12,000 each can be given to as many individuals as you wish without gift tax. Example: if you had a married son you and your wife could give $48,000 to your son and his wife each year without incurring gift taxes. If you did same now (before year end) you could give $96,000 over the next two weeks ... $12,000 from husband and $12,000 from wife this year to your son ... $12,000 from husband and $12,000 from wife to your dauther-in-law or a total $48,000 this year. In addition, anytime after Jan. 1 2009 you could do the same thing giving another $48,000 or a total of $96,000. Double it if they had two children.
An update is the gift amount is $13,000 for 2009. There are some procedural matters - largely taken care of by doing gifts from a joint account, or filing a gift tax return (no tax, just the 709 return) and noting that the gifts from you are done by gift-splitting.
Good additions Mr Davison ... which point out something I should have added in my first response. GIFTING and the related gift tax implications can get a bit complicated. Therefore, I’d strongly recommend that anyone considering a gifting program work with a tax professional before you implement gifting strategies. Don't take my response as tax advice ... my comments are provided only for discussion purposes. Everyone has particular individual issues that can cause tax implications that should be reviewed by a tax expert before they start gifting.
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