What Is a Gift in Trust? A gift in trust is a special legal and fiduciary arrangement that allows for an indirect bequest of assets to a beneficiary. The purpose of a gift in trust is to avoid the tax on gifts that exceed the annual gift tax exclusion limit. This type of trust is
What Is a Gift Letter? A gift letter is a piece of legal, written correspondence explicitly stating that money received from a friend or relative is a gift. Gift letters for tax purposes often come into play when a borrower has received assistance in making a down payment on a new home or other real
What Is Gift Splitting? The term gift splitting refers to an estate planning tool that married couples can use to double their allowed annual gift tax exclusion amount. The gift tax exclusion is the amount that someone can transfer to another person as a gift without having to pay the gift tax levied by the
What Is a Gift Tax? A gift tax is a federal tax paid by an individual who transfers something of value to another individual without receiving something of similar value in return. Gifts can be anything of significant value, such as large sums of money or real estate, and the tax can be imposed even
What Is a Gig Economy? A gig economy is a labor market that relies heavily on temporary and part-time positions filled by independent contractors and freelancers rather than full-time permanent employees. Gig workers gain flexibility and independence but little or no job security. Many employers save money by avoiding paying benefits such as health coverage
What Is a Gilt Fund? Gilt funds are a type of British investment fund that invests in gilt securities. Gilts are the equivalent of U.S. Treasury securities in their respective countries, and originated in Great Britain where gilt funds are primarily utilized today. Key Takeaways Gilt funds are pooled investment vehicles that hold British government bonds.Similar to U.S.
What Are General and Administrative Expenses (G&A)? General and administrative (G&A) expenses are incurred in the day-to-day operations of a business and may not be directly tied to a specific function or department within the company. General expenses pertain to operational overhead expenses that impact the entire business. Administrative expenses are expenses that cannot be
What Is the General Business Credit? The general business credit (GBC) is the aggregate value of individual tax credits a business claims during a tax year. It consists of carryforward credits from previous years plus the current year’s total business credits. Because it’s a tax credit—and not a tax deduction—the amount comes directly off your
What Is the General Data Protection Regulation (GDPR)? The General Data Protection Regulation (GDPR) is a legal framework that sets guidelines for the collection and processing of personal information from individuals who live and outside of the European Union (EU). Approved in 2016, the GDPR went into full effect two years later. Its aim is
What Is the General Depreciation System? The general depreciation system is the most commonly used modified accelerated cost recovery system (MACRS) for calculating depreciation. A general depreciation system uses the declining balance method to depreciate personal property. Key Takeaways A general depreciation system uses the declining-balance method to depreciate personal property.The declining-balance method applies the
