According to annual gift tax exemption you
are allowed to make gifts of up to $14,000 per year per person which is tax-free.
Now Patel gave his six grand children $30,000 each. So, Patel's gift tax exclusion on each individual is $14,000. The amount above the annual limit
that is $14,000 to each individual has to be reported and counts toward Patel’s
lifetime exclusion.
