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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

annual exclusion  

Definition 1.

The maximum amount that a person is allowed to give another person without incurring Federal gift tax. The current annual exclusion is $11,000 per year per recipient. There is no limit on the number of these gifts you can make to different people in a year. To qualify, a gift must be of a "present interest," meaning that the recipient can make use of the gift immediately, and the donor must not have any control over the asset after it is given.
 
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