1-2d Gift Tax

Question 1

Gift tax

Answer 1

• excise tax levied on the right to transfer property during the owner’s life rather than at death
• the gift tax base is the sum of all gifts made during one’s lifetime then subtracted by gift taxes paid in prior years
• annual exclusion of $14,000 per donee and $28,000 if married
• $5 million dollar exclusion to reduce tax liability