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Gift tax |
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Gift taxIn the US, a tax imposed by the federal government or state on the donor of a gift when the transfer of money or property passes from one individual to another. A parent or parents making gifts to children are allowed to make transfers up to a specified amount without paying tax. In the UK there is currently no gift tax in operation although there is a potential liability for inheritance tax when gifts are made.Gift taxA tax assessed on the giver of a property or asset as a gift. A $10,000 federal gift tax exemption exists per recipient. See: Gift splitting.Gift tax Similar MatchesFederal gift taxFederal gift taxIn the US, a federal tax levied on gifted property, money or securities. The tax is payable by the donor and based on fair market value of the gift. A parent or parents making gifts to children are allowed to make transfers up to a specified amount without paying tax. Uniform Gifts to Minors Act (UGMA)Uniform Gifts to Minors Act (UGMA)Legislation that provides a tax-effective manner of transferring property to minors without the complications of trusts or guardianship restrictions. Gift inter vivosGift inter vivosA piece of property or asset given from one living person to another. GiftGiftA transfer of an asset such as property or money etc from one person to another where no payment of any kind is given by the receiving person to the donor. Transfers of this kind may be subject to inheritance tax if the value is above a certain amount and to capital gains tax in certain circumstances. Gift splittingGift splittingA technique used to avoid a gift tax in which a large sum of money to be given by two parents to a child is halved and given to the child separately For example, a husband and wife each donate $10,000 to their child rather than one parent donating $20,000. Further SuggestionsFederal gift tax |
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