gift tax

Thân thiện

A family attorney explains the gift tax to a couple during a consultation.

Definition

1. Noun:
   • A tax levied by a government on the transfer of money or property from one person to another without receiving something of equal value in return. This tax is typically the responsibility of the person giving the gift (the donor), not the person receiving it.

Usage

The term "gift tax" is used to discuss financial planning, estate law, and taxation. It specifically refers to a tax on the act of giving, not on the gift itself after it is received. It is important to distinguish it from an inheritance or estate tax, which applies after a person's death.

Examples

• Noun:
  • The wealthy philanthropist had to pay a substantial gift tax when he transferred the shares to his foundation.
  • Before giving large sums to your children, you should consult an accountant about potential gift tax implications.
  • In some jurisdictions, there is an annual exemption amount below which no gift tax is due.

Advanced Usage

• "gift tax exclusion" or "annual gift tax exclusion": A specific amount of money that can be given to any number of individuals each year without incurring the gift tax or reducing the donor's lifetime exemption.
  • They structured the payments to stay within the annual gift tax exclusion limit.
• "gift tax return": A formal document filed with the tax authorities to report gifts that may be subject to the tax.
  • Even if no tax is owed, you may still be required to file a gift tax return.

Variants and Related Words

• Estate Tax (n): A tax levied on the total value of a deceased person's estate before distribution to heirs. This is related but applies after death, not during a lifetime.
• Inheritance Tax (n): A tax levied on the person who receives property or money from a deceased person's estate. This differs as it taxes the recipient, not the transfer.
• Donor (n): The person who gives a gift.
• Donee (n): The person who receives a gift.

Synonyms

• Transfer tax (This is a broader category that can include gift taxes, estate taxes, and other taxes on asset transfers.)

Related Phrases

• To be subject to gift tax: To potentially incur this tax liability.
  • That transfer of property is likely subject to gift tax.
• To owe gift tax: To have a legal obligation to pay this tax.
  • After applying the lifetime exemption, he did not owe gift tax on the bequest.

Học thuật

Noun

1. a tax imposed on transfers of property by gift during the lifetime of the giver