Gift

DEFINITION of 'Gift'

Property, money or assets that one person transfers to another while receiving nothing or less than fair market value in return. Under certain circumstances, the IRS collects a tax on gifts. Transfers of money or property that are given freely or exchanged for less than market value may be subject to the gift tax if the donor has exceeded the annual or lifetime gift exemption.

BREAKING DOWN 'Gift'

If you receive a gift, you aren't required to report it as income; it is the gift giver who is responsible for paying any tax and filing a gift tax return. Gifts of any amount to spouses or political organizations, and payments of tuition and medical expenses on behalf of others, are generally not taxable as gifts. Estate planning can help wealthy individuals avoid paying gift taxes.

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RELATED FAQS
  1. How does the gifting process work with a deed transfer?

    My parents own a home that they would like to "gift" to my husband and me. The house is in my parents name and ... Read Answer >>
  2. Can I give stock as a gift?

    Stocks, bonds or any other securities can be transferred as gifts. Giving the gift of stock also has benefits for the giver. ... Read Answer >>
  3. My father gives me money each year through CDs to avoid taxation, and then takes ...

  4. Can a mother deed a property to her daughter to qualify for a reverse mortgage?

    A 100 year old mother owns a $225,000 FMV home. Her 80 year old daughter lives with her. They need a m... Read Answer >>
  5. Do I have to claim a quitclaim deed on my taxes this year from 2000?

    Back in 2000, my mom had a quit claim deed done on the house with my husband and I being the names add... Read Answer >>
  6. If my wife transfers the condo title to my daughter, and my daughter sells the condo ...

    My daughter and my wife own a condo in Tampa, FL. The condo is paid off. It was purchased in May 2011.... Read Answer >>
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