gift taxes

gift tax

A federal tax that is imposed on the giver and determined on the basis of a unified gift and estate tax schedule. Annual gifts above a specified amount per recipient are deducted from a lifetime exemption. This exemption applies jointly to accumulated gifts and to the taxable estate left at death. In most cases, only relatively large gifts incur a tax. See also unified credit.

Main Entry: gift tax
Function: noun
: an excise tax imposed on a donor for gifts of property made during the donor's lifetime —see also ANNUAL EXCLUSION, GIFT 3 split gift at GIFT, UNIFIED TRANSFER TAX —compare DEATH TAX, ESTATE TAX, GENERATION-SKIPPING TRANSFER TAX