gift tax


A graduated tax assessed against a person who gives money or an asset to another person without receiving fair compensation. A significant amount of each gift is tax-free. There are no exclusion limits on gifts given to a spouse unless the spouse is not a U.S. citizen. The recipient of the gift does not report income except when the gift is a property or stock. The recipient still has to pay taxes if he or she makes a profit from the gift.
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grantor retained annuity trust (GRAT) donor