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Gift Tax

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Gift Tax
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A gift tax is a federal tax applied to an individual giving anything of value to another person.
The receiver of the gift may pay the gift tax, or a percentage of it, on the giver’s behalf, in the event
that the giver has exceeded his/her annual personal gift tax deduction limit.
This means that an individual may give another individual $14,000 or less per year, without incurring a gift tax
For something to be considered a gift, the receiving party cannot pay the giver
full value for the gift, but may pay an amount less than its full value.
Gifts that are valued at less than the annual gift tax exclusion for a given year.

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