The federal gift tax is a tax on the transfer of property from one individual (the donor) to another (the donee) when the donor receives nothing—or less than full value—in return. The tax applies whether the donor intends the transfer to be a gift or not.

The gift tax applies to the transfer of a gift of any type of property. You make a gift if you give property (including money) or the use of or income from property without expecting to receive something of at least equal value in return. If you sell something at less than its full value or if you make an interest-free or reduced-interest loan, you may be making a gift.

For additional information, see Internal Revenue Service (IRS) Form 709 and its instructions.

The federal gift tax is applicable to individuals in all states, including Georgia, and is governed by federal law, not state statutes. It is imposed on the transfer of property by one person to another when the transfer is made without receiving something of equal value in return. This tax applies regardless of the donor's intention for the transfer to be a gift. The tax encompasses all types of property, including money, real estate, and personal property. If a person sells an item for less than its fair market value or extends a loan without interest or at a reduced interest rate, it may also be considered a gift for tax purposes. Each individual has an annual gift tax exclusion amount, which is adjusted periodically for inflation, and amounts gifted below this threshold do not require reporting and are not subject to the tax. Gifts exceeding this amount may require the filing of IRS Form 709, and taxes may be owed. It's important to consult with an attorney or tax advisor for specific advice related to gift tax implications, as the rules can be complex and there are various exclusions and exemptions that may apply, such as gifts to spouses or payments for medical and educational expenses.