Gift Tax & Annual Exclusion
Federal tax on transfers of property for less than full value. Annual exclusion: $18K per recipient (2024). Lifetime exemption: $13.61M (2024), but scheduled to drop to ~$7M in 2026. For family business transfers, annual gifting of ownership interests is a core strategy — but valuation discounts and timing matter enormously.
Where This Matters
→
Succession Planning
→Passing a business to the next generation — family dynamics, valuation for transfer, gift/estate tax strategy, and management transition.
Tax Strategy
Legal strategies to reduce business and personal tax burden — entity optimization, deferred compensation, retirement planning, California-specific tactics.
Related Terms
Need help understanding how this applies to your situation?
Browse All Terms
Enterprise Value (EV)Seller's Discretionary Earnings (SDE)EBITDA MultipleQuality of Earnings (QoE)Add-BacksDue DiligenceLetter of Intent (LOI)Holdback (Escrow)Earn-OutAsset SaleStock Sale (Equity Sale)GoodwillPersonal GoodwillCommunity PropertySeparate PropertyPereira MethodVan Camp MethodTransmutationBuy-Sell AgreementShotgun Clause (Russian Roulette Clause)View all →