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Annual
Exclusion
An amount up to $10,000 per year that every person is allowed to give another person without incurring Federal gift tax. There is no limit on the number of these gifts you can make to different people in a year. To qualify for this exclusion, a gift must be of a "present interest," meaning that the recipient can enjoy the gift immediately, and the donor must not have any control over the asset. This can present problems when making gifts to trusts. Back to 'A' Terms Back to Glossary Main Page
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