What does annual exclusion mean on the CPA exam?
Annual exclusion. The amount a donor may give each recipient each year with no gift tax and no return. It applies only to gifts of a present interest.
Defined against Sec. 2503(b).
Which CPA exam sections use annual exclusion?
Annual exclusion appears in the TCP section of the CPA exam.
Related terms
- conditional contribution: A promised gift that depends on a barrier the recipient must overcome and a right of return if it does not.
- unified credit: The credit that shelters the basic exclusion amount from gift and estate tax.
- consideration: The bargained-for exchange that makes a promise enforceable.
- required supplementary information: Schedules a government must present outside the basic statements, such as budgetary comparisons and pension trend data.
- recognized gain: The part of realized gain that actually goes on the return this year.