IRS Allows $19,000 Annual Gift Tax Exclusion for Family Loans

Parents can lend a child a down payment at the IRS applicable federal rate and forgive $19,000 annually without filing a gift tax return. Married couples can effectively forgive up to $76,000 in one year by stacking the gift tax exclusions. For 2026, the annual gift tax exclusion remains $19,000, as per IRS Revenue Procedure 2025-32. This strategy allows for significant wealth transfer without tax implications, which is valuable for families looking to assist with home purchases.