The amount of assets that a person may transfer free from transfer tax. The "exemption amount" is referred to by the IRS as the "applicable exclusion amount". In 2004 the exemption amount is $1,500,000.
Amount that taxpayers can claim for themselves, their spouses, and eligible dependents. There are two types of exemptions-personal and dependency. Each exemption reduces the income subject to tax. The exemption amount is a set amount that changes from year to year.
The total amount of tax exemption (tax savings) that is being applied to a property.