Final answer:
Julius, a married taxpayer, can make gifts to each of his six children up to a certain amount called the annual exclusion. He can potentially have six annual exclusions for these gifts.
Step-by-step explanation:
Julius, a married taxpayer, can make gifts to each of his six children. These gifts can be excluded from his taxable income up to a certain amount, known as the annual exclusion. In 2020, the annual exclusion amount was $15,000 per recipient. So, Julius can gift up to $15,000 to each of his children without it being subject to gift tax or reducing his lifetime gift and estate tax exemption.
Since Julius has six children, he can potentially make six separate gifts, each up to $15,000, and all of them would qualify for the annual exclusion. This means that a maximum of six annual exclusions could be allowed as to these gifts.