gift tax

gift tax definition - business

gift tax

A federal tax that is imposed on the giver and determined on the basis of a unified gift and estate tax schedule. Annual gifts above a specified amount per recipient are deducted from a lifetime exemption. This exemption applies jointly to accumulated gifts and to the taxable estate left at death. In most cases, only relatively large gifts incur a tax. See also unified credit.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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