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Annual gift is a donation given yearly to support reliable monies for ongoing programs and services.
Generally, a gift tax will be imposed on any transfers of property by gift. Annual gift is excluded from tax under the internal revenue code. For purposes of determining whether a gift is exempted by Sec. 2503(b) of the internal revenue code from the annual gift tax exclusion, a gift is a future interest and if the right to enjoy the gift is postponed to some time in the future. [Estate of McClure, 221 Ct. Cl. 570 (Ct. Cl. 1979)].