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.


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.

  1. Gift Letter

    Written correspondence to a lender stating that money received ...
  2. Qualified Personal Residence Trust ...

    A specific type of trust that allows its creator to remove a ...
  3. Form 8283

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  4. Cy Pres Doctrine

    Cy Pres represents a legal concept that gives courts the power ...
  5. Gift Causa Mortis

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

    A tax levied on an heir's inherited portion of an estate if the ...
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    According to the Achieving a Better Life Experience Act of 2014 (ABLE Act), when the designated beneficiary of a 529A account ... Read Full Answer >>
  2. Can I donate stock to charity?

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    Under the current version of the law, any IRA or Roth IRA assets that are gifted while the IRA owner is alive are considered ... Read Full Answer >>
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