Uncle Sam might tax your 401(k) or even your dividends, but there is a good chance he won’t take a cut of that $100 bill you slipped into your teenage son’s birthday card or the $650 washing machine you bought for a friend in need. In fact, you can give away quite a bit of money or property without the IRS noticing—provided you stay within certain gift-tax limits, which are called annual exemption limits. The current annual exemption limit is $17,000 per recipient in 2023, and spouses can share the exclusion amount, meaning you and your partner can give up to $34,000 to each other and to individual recipients each year.

It’s important to note, however, that you must file a gift tax return for any gifts above this limit. It’s a civil obligation to let the IRS know, and failing to do so can result in penalties.

In general, the IRS looks at a number of things when determining whether something qualifies as a taxable gift. One of the most important considerations is fair market value, which is what the item would sell for on the open market. The IRS can also consider a gift any time you transfer ownership of an asset to someone else, which is why setting up revocable trusts can be such a smart move.

The good news is that the current lifetime exemption is set to double in 2023, so most people won’t run afoul of this rule any time soon. But it’s always a good idea to keep track of the value of the assets you’re giving away, especially if they are appreciated assets.

There are also some items that don’t qualify as a gift, such as interest-free loans or forgiving debts. Basically, any loan you make that you don’t expect to get paid back is considered a gift by the IRS.

Another reason to keep track of the value of your gifts is that if you give more than the exclusion amount in a single year, the excess must be reported on a gift tax return, and it will lower your lifetime exclusion limit. If you’re planning to give away a large sum in the future, this could be a big issue to consider.