Gift Rule

The Gift Rule, often referred to in legal and tax contexts, refers to the guidelines determining when a transfer of property or assets is considered a gift for tax purposes. In simple terms, if one person gives something of value to another without expecting anything in return, it can be classified as a gift. Under current tax laws in many jurisdictions, individuals can gift a certain amount each year without incurring gift tax. Understanding this rule helps individuals make informed decisions about gifting money or property while remaining compliant with tax regulations.