A gift tax is a type of federal tax paid on property (cash, stocks, real estate, etc.) given to another person as a gift. The person who gives the financial gift, also called the donor, is responsible for paying taxes on it only if it exceeds a specific amount set by the US government. Certain donations, such as tuition or medical payments, are not considered gifts and are exempt from gift tax. Gift taxes and estate taxes are closely related.
Salem Press Encyclopedia, 2020. 2p.