Gift Tax Return

AAA

DEFINITION of 'Gift Tax Return'

A federal tax form that must be filled out by any individual who gives a gift that exceeds the annual or lifetime exempt gift amount established by the IRS. For example, if the annual gift tax exemption is $13,000 per recipient, anyone who gives a gift worth $13,001 or more to a single recipient will have to fill out a gift tax return. The return must be filled out because gifts above the exempt amount are subject to a gift tax.

INVESTOPEDIA EXPLAINS 'Gift Tax Return'

Unless special arrangements have been made, it is always the gift giver, not the recipient, who is responsible for paying the gift tax and for filing the gift tax return. The gift tax return is IRS Form 709. In order to avoid the gift tax, many people choose to engage in estate planning, which involves the use of a financial planner, tax professional and/or attorney to strategically choose when, how and who gets the estate owner's money.

RELATED TERMS
  1. Unlimited Marital Deduction

    A provision in United States Federal Estate and Gift Tax Law ...
  2. Gift Causa Mortis

    A gift to be given at a later date in anticipation of the giver's ...
  3. Estate

    All of the valuable things an individual owns, such as real estate, ...
  4. Estate Planning

    The collection of preparation tasks that serve to manage an individual's ...
  5. Estate Tax

    A tax levied on an heir's inherited portion of an estate if the ...
  6. Gift

    Property, money or assets that one person transfers to another ...
Related Articles
  1. Retirement

    Top 7 Estate Planning Mistakes

  2. Taxes

    Tax-Efficient Wealth Transfer

  3. Options & Futures

    Getting Started On Your Estate Plan

  4. Bonds & Fixed Income

    How are savings bonds taxed?

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center