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What is gift tax?

Gift taxes are a transfer tax that is payable by various donors of gifts. Transfer of money or property, whether real or personal, tangible or intangible for less than adequate or full consideration of money is defined as a gift. A gift tax return will be required by each donor that makes the gift of property or cash to a specified donee in excess of $15,000. There are certain rules and limitations that apply to gift tax situations.

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