This page contains information about selected terms and concepts used in SOI's Gift tax articles and tables. Please visit Gift Tax Statistics to access these articles and tables. Charitable Deduction Location: Page 3, Part 4, Line 7 Definition: Contributions to qualifying charitable organizations (also called bequests) made by the decedent's estate are reported, by beneficiary, on Schedule O. Subject to certain limitations, the sum of these contributions may be claimed as a deduction. Current period Location: N/A Definition: The current tax reporting year. Generation skipping transfer tax Location: Page 1, Part 2, Line 16 Definition: A tax imposed on both outright gifts and transfers in trust to or for the benefit of individuals two or more generations younger than the donor, such as grandchildren. This tax is imposed only if the transfer avoids incurring a gift or estate tax at each generation level. Prior period Location: N/A Definition: All tax years prior to the current reporting year. Marital deduction Location: Page 3, Part 4, Line 6 Definition: For transfers of property between spouses the donor may take an unlimited marital deduction for the full amount of the transfer; all transfers of assets between spouses are tax-free. Maximum unified credit Location: Page 1, Part 2, Line 7 Definition: The unified credit, so called because it is used for both estate and gift tax purposes, is applied as a dollar-for-dollar reduction of the estate tax. (The unified credit represents the amount of tax on that part of gross estate that is below the filing requirement.) The credit may be used to offset gift taxes on lifetime transfers made after 1976. However, to the extent it is so used, the amount of credit available at death is reduced. Net tax on current period gifts Location: Page 1, Part 2, Line 15 Definition: Net tax is calculated as the tentative tax on current period gifts, less the applied unified credit and applied foreign gift tax credits, which are credits allowed for gift taxes paid to other countries with which the U.S. has gift tax treaty provisions. Specific exemption amount Location: Page 1, Part 2, Line 10 Definition: The specific exemption amount is 20% of the exemption amount allowed for gifts given between September 8, 1976 and January 1, 1977. The amount reduces the amount of available unified credit which can be used to offset the tax on current period gifts. Tax on current period gifts Location: Page 1, Part 2, Line 6 Definition: The tax on current period gifts is calculated by subtracting tax on prior taxable gifts from the amount of tax on total taxable gifts. Tax on prior taxable gifts Location: Page 1, Part 2, Line 5 Definition: The tax on prior taxable gifts is calculated by applying the graduated tax rates to the amount of gifts from prior periods, as reported on Schedule B. Tax on total taxable gifts Location: Page 1, Part 2, Line 4 Definition: The tax on current period gifts is calculated by applying the graduated tax rates to the amount of total taxable gifts, both current and prior period. Tax status Location: (based on Page 1, Part 2, Line 15) Definition: Gift tax returns on which taxpayers either reported a gift tax liability on line 15 or did not report a liability. Taxable gifts, all periods Location: Page 1, Part 2, Line 3 Definition: These are the amount of taxable gifts—total gifts less exclusions and deductions—regardless of the year in which they were given. Taxable gifts, current period Location: Page 3, Part 4, Line 11; also Page 1, Part 2, Line 1 Definition: These are the amount of taxable gifts—total gifts less exclusions and deductions—for the current tax year. Taxable gifts, prior period Location: Page 1, Part 2, Line 2 Definition: These are the amount of taxable gifts—total gifts less exclusions and deductions—for all prior tax years in which the donor transferred property. Total annual exclusions Location: Page 3, Part 4, Line 2 Definition: The annual exclusion is the amount a donor may give to any single recipient before incurring tax. There are no limits on the number of recipients, and gifts, for which the donor may claim the annual exclusion. Total deductions Location: Page 3, Part 4, Line 8 Definition: The sum of all of the statutory deductions which may be taken annually by a donor against gifts given within a given within that tax year. Total gifts Location: Page 3, Part 4, Line 1 Definition: These are the value of total gifts reported by the donor after gifts have been split between the donor and the consenting spouse. Total included amount of gifts Location: Page 3, Part 4, Line 3 Definition: All gifts reported by the donor, after having been split between the donor and consenting spouse, and after the annual exclusion for each done has been accounted for. Total tax Location: Page 1, Part 2, Line 17 Definition: The sum of net gift taxes on current periods and taxes on transfers to skip persons. Unified credit, applied Location: Page 1, Part 2, Line 12 Definition: The applied unified credit amount is the lesser of either the total unified credit available or the tax amount on current period gifts. Unified credit, available Location: Page 1, Part 2, Line 9 Definition: The amount of unified credit available to reduce the amount of tax on current period gifts, calculated as $345,800 (the statutory maximum) less the amount of unified credit previously applied, less the specific exemption amount. Unified credit, previously applied Location: Page 1, Part 2, Line 8 Definition: This is the amount of the total unified credit allowed to each donor throughout their lifetime which has already been used to reduce the taxability of prior gifts. (Back to top)
