Gift Tax (Noun)
Meaning
A tax imposed on transfers of property by gift during the lifetime of the giver.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The wealthy individual was advised to make gifts to her children during her lifetime to take advantage of the annual gift tax exemption.
- The gift tax laws in the country imposed a levy on gratuitous transfers exceeding a certain amount, which were deemed taxable gifts.
- To minimize the gift tax liability, the donor should consider the recipient's current financial situation and potential future needs.
- Under current tax laws, the gift tax return must be filed by April 15th to report all taxable gifts made during the preceding tax year.
- Failure to pay the gift tax on large transfers could result in penalties and interest, as well as potentially reducing the amount of the gift itself.