Final answer:
The gift tax annual exclusion is $15,000 per donee for gifts of present interest, allowing donors to give up to this amount without incurring a federal gift tax. The correct option is a. $15,000 per donee for gifts of present interest.
Step-by-step explanation:
For each donor, the gift tax annual exclusion is $15,000 per donee for gifts of present interest. This means that a donor can give up to $15,000 to an individual recipient without having to pay any federal gift tax or report the gift to the IRS.
It's important to note that this exclusion amount can change periodically due to inflation adjustments or changes in tax laws.
For example, in 2021, donations to political campaigns had limits on how much could be donated to ensure a level playing field, with Federal Election Commission (FEC) regulations limiting contributions to $2900 per candidate per election, as well as other specific limitations for PACs and party committees.
The correct option is a. $15,000 per donee for gifts of present interest.