Unified Tax Credit

DEFINITION of 'Unified Tax Credit'

A tax credit that is afforded to every man, woman and child in America by the IRS. This credit allows each person to gift a certain amount of their assets to other parties without having to pay gift, estate or generation-skipping transfer taxes.

BREAKING DOWN 'Unified Tax Credit'

The unified tax credit can be used by taxpayers either before or after death. It is important to keep up to date on it as the unified tax credit can change.

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RELATED FAQS
  1. If a parent transferred a house deed to their three adult children, do they need ...

    Currently, only the parents Read Answer >>
  2. 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 >>
  3. What is the difference between a write-off and a deduction?

    Understand the differences between a tax write-off and a tax deduction. Learn how each one works to reduce income taxes and ... Read Answer >>
  4. Last year I got my parents' house title transferred to my name. Do I have to file ...

    I haven't filed taxes since 2003, when I was in the army, because I haven't worked since then. ... Read Answer >>
  5. How should I report my quitclaim deed?

    I live in Louisiana. My daughter and the rest of my family live in New Jersey. Two years ago, they didn't have enough ... Read Answer >>
  6. 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 >>
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