What is a gift tax? (Nick Kaster discusses with "Reel Lawyers")
The gift tax is similar to the estate tax other than it applies during your lifetime. The federal exemption for gifts is $5.45 million, which means that a person can transfer $5.45 million to anybody he or she wants without paying estate taxes. There are some exemptions to that, a person could travel an unlimited amount to his or her spouse and not worry about gift taxes. And there’s also an annual exclusion that allows a person to transfer $14,000.00 to any number of people without any gift tax consequences.