A couple gives gifts amounting to $36,000. What is the amount of the reduction in the lifetime exemption from the gifts?

The correct choice indicates that there is no reduction in the lifetime exemption due to the gifts made by the couple, amounting to $36,000. This stems from the annual gift tax exclusion limit, which for the tax year 2021 is $15,000 per recipient.

In this scenario, if the couple made gifts to multiple individuals, each recipient would qualify for the annual gift exclusion. The couple can give away up to $15,000 to each recipient without affecting their lifetime gift tax exemption. Therefore, if they gifted $36,000 in total, as long as they did not exceed the limit per individual recipient and the combined number of recipients fits within the exclusion criteria, the total gift does not reduce their lifetime exemption.

In summary, because the total amount of gifts does not surpass the allowable exclusions and they likely utilized this option, the couple's lifetime exemption remains intact, resulting in no reduction from the gifts made.