An annual exclusion gift usually involves cash, stocks, bonds, portions of real estate, or forgiving debt on a family loan in an amount that doesn't exceed the annual gift tax exclusion. The federal government sets the allowable limits for tax-free giving each year.
The annual gift exclusion amount for 2021 stays at $15,000 per donor per recipient.
[Last updated in June of 2021 by the Wex Definitions Team]