Federal Gift Tax
Definition - What does Federal Gift Tax mean?
Federal gift tax refers to the amount of federal tax which occurs after the giving of a gift worth a large monetary value. There is a certain value of gifts defined which is tax free. As of 2015, the gift tax takes effect if the gift is worth more than $14,000.00. This tax can and does change on a yearly basis.
Justipedia explains Federal Gift Tax
The person who gives the gift must file gift tax return if required and pay any applicable taxes. As in all tax scenarios, professional assistance is vital when it comes to planning gift tax.