gift tax

gift tax definition - finance
A tax that is assessed on a person who gives assets or money to another person without receiving fair compensation. Gifts up to $11,000 a year are exempt from the gift tax. A married couple may give a total of $22,000 to one person as a gift if each person writes a separate check. A spouse may receive unlimited gifts free of tax, unless the spouse is a foreigner. Top gift tax rates are at 50%.

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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