annual exclusion

Definition of "annual exclusion"
  1. It refers to the maximum monetary value an individual can give as a gift every year without incurring gift tax
How to use "annual exclusion" in a sentence
  1. The couple used their annual exclusion to financially assist their children without having to pay any gift taxes.
  2. When estate planning, it's important to consider the annual exclusion in order to minimize the gift tax.
  3. The tax consultant recommended making use of the annual exclusion to reduce the overall taxable amount.

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