If a donor makes a 23,000 present-interest gift to a minor in 2026, what is the amount subject to tax after applying the annual exclusion?

If a donor makes a 23,000 present-interest gift to a minor in 2026, what is the amount subject to tax after applying the annual exclusion?

• A. 4,000
• B. 23,000
• C. 19,000
• D. 0

Answer: (A)

The key idea is how the annual gift tax exclusion reduces what’s taxable. In 2026, the annual exclusion for a present‑interest gift to a single recipient is 19,000. If the donor gives 23,000 to one minor, you subtract the exclusion: 23,000 − 19,000 = 4,000. That leftover 4,000 is the amount subject to gift tax (the rest is excluded). The fact the recipient is a minor doesn’t change the exclusion amount or how it’s applied.

The key idea is how the annual gift tax exclusion reduces what’s taxable. In 2026, the annual exclusion for a present‑interest gift to a single recipient is 19,000. If the donor gives 23,000 to one minor, you subtract the exclusion: 23,000 − 19,000 = 4,000. That leftover 4,000 is the amount subject to gift tax (the rest is excluded). The fact the recipient is a minor doesn’t change the exclusion amount or how it’s applied.