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 all individuals in the United States, including those residing in Kansas (KS). It is imposed on the transfer of property by one person (the donor) to another (the donee) without adequate consideration in return. This tax is not dependent on the donor's intention for the transfer to be a gift. Any transfer of property, money, or income from property that is given away for less than its full value can be considered a gift under federal law. In Kansas, as in all states, residents must comply with these federal regulations. The donor is typically responsible for paying the gift tax. Each year, there is an annual exclusion amount for gifts to any one person that is not subject to the tax. Beyond this exclusion, the donor must file IRS Form 709 to report the gift. The instructions for Form 709 provide further details on how to determine if the gift tax applies and how to calculate the amount of tax due.