Gift Tax

A tax that can be due when you give property or other assets away. You are allowed to give away a maximum of $10,000 per person (to any number of people) in any year without the tax applying. Above the $10,000 amount, you have a once-in-a-lifetime exclusion, which permits you to give away $600,000 of property without paying any gift tax. The gift tax and the estate tax are coordinated (unified) so that the $600,000 exclusion is only available once between them. The $600,000 is being increased in periodic increments to $1,000,000