A tax levied on the value of property given as a gift, imposed upon the donor of the gift .
Webster's New World Law
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
Gift-tax Sentence Examples
Rather than making financial contribution, which is costly and can have gift tax implications, family members can use their own creditworthiness and willingness to assist relatives simply by agreeing to a co-borrower arrangement.
If you contribute more than $11,000 in total, there may be gift tax consequences.
This form is available on the IRS website to taxpayers filing a 1040, 1040A, 104EZ, 1040NR, 1040NR-EZ, 1040-PR or 1040-SS or a 709 gift tax return.
This extension is only available to taxpayers intending to file forms 1040, 1040A, 104EZ, 1040NR, 1040NR-EZ, 1040-PR or 1040-SS or a 709 gift tax return.