Sylvester wants to gift as much as possible to his three children without making taxable gifts. What is the total amount he can give each year?

The correct total amount Sylvester can give each year without making taxable gifts is $45,000. This figure is derived from the annual gift tax exclusion, which allows individuals to gift a certain amount each year to an unlimited number of recipients without incurring gift tax. As of 2023, this exclusion amount is $15,000 per recipient.

Since Sylvester has three children, he can apply the exclusion for each child individually. Therefore, if he gives $15,000 to each of his three children, the total becomes $15,000 multiplied by 3, resulting in $45,000. This strategy allows Sylvester to effectively transfer wealth to his children without triggering any gift tax implications, thus maximizing his gift-giving within the exclusion limits.

In contrast, other amounts suggested would either exceed the exclusion limit for the total gifts given to his children or not fully utilize the tax benefits available to him.