gift splitting

gift splitting definition - finance
Dividing a gift into two pieces in order to avoid paying a gift tax. The current amount that is allowed to be given as a gift without incurring taxes is $11,000. A married couple that wants to give $22,000 to a child or family member would each write a check for $11,000 in order to avoid the gift tax.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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