Glossary A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | 1 | 3 | 4 | 5 Definitions by InvestorWords.com   What is...? Annual Exclusion The maximum amount that a person is allowed to give another person without incurring Federal gift tax. The current annual exclusion is $10,000 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. Copyright ©2009 by InvestorGuide.com. All Rights Reserved.