gift splitting


The act of taking a large monetary gift and dividing it to avoid having to pay federal and/or state taxes on the gift. For example, Becky's parents want to give her $24,000 as a gift for completing her degree. To prevent Becky from having to pay taxes on the gift, her parents both give her $12,000 so that it considered two separate gifts.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
gift of equity gift tax