Gift Tax Return

Dictionary Says

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 Says

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.

comments powered by Disqus
Hot Definitions
  1. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  2. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  3. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  4. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
  5. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
  6. IPO ETF

    An exchange-traded fund that focuses on stocks that have recently held an initial public offering (IPO). The underlying indexes tracked by IPO ETFs vary from one fund manager to another, but index IPO ETFs are usually passively managed and contain equities that have recently been offered to the public.
Trading Center