Gift tax

The gift tax is a tax levied on anyone giving assets to another party without recompense. A sale of goods at less than their fair market value can be considered a gift, as can an interest-free or reduced-interest loan. Gifts to one's spouse, a political organization, and gifts below the annual gift tax exclusion are not subject to the gift tax. The gift tax exclusion is periodically reset to account for the effects of inflation.

Related Courses

Family Tax Planning