In gift splitting, what is the limit per recipient for a married couple?

In the context of gift splitting for a married couple, the limit per recipient is indeed $26,000. This is based on the annual gift tax exclusion, which allows individuals to give a certain amount to each recipient without incurring gift tax. For 2023, that exclusion amount is $13,000 per individual.

When both spouses consent to gift splitting, they can effectively double that exclusion amount for each recipient, resulting in a total limit of $26,000 per recipient. This means that a married couple can gift up to $26,000 to each person without it counting against their lifetime gift tax exemption.

This strategy can be beneficial for tax planning, as it allows couples to maximize their tax-free gifts to children or others while minimizing potential taxable gifts. By utilizing gift splitting, couples can significantly enhance their financial support to recipients without triggering taxation.