What is the gift tax annual exclusion amount per donee for gifts of present interest?

The correct answer is that the gift tax annual exclusion amount per donee for gifts of present interest is $15,000. This amount represents the maximum value of gifts that an individual can give to each recipient in a calendar year without incurring federal gift taxes or requiring the filing of a gift tax return. The exclusion applies specifically to gifts of present interest, meaning the recipient has the immediate and unrestricted right to use or enjoy the gift.

The annual exclusion amount is indexed for inflation and was originally set at $10,000, but it has increased over the years, with the $15,000 figure being relevant for the years following 2016. It is important for individuals engaged in estate planning and gift-giving to understand this limit, as it allows for tax-efficient transfers of wealth.

While other options represent different amounts or conditions related to gift taxation, they do not pertain to the standard annual exclusion amount for gifts of present interest per donee. Understanding this concept is crucial for financial advisors and individuals alike, as it plays a vital role in strategic gift planning.