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.

In Oregon, as in all states, the federal gift tax applies to transfers of property where the donor does not receive full value in return. This tax is imposed by the federal government, not the state, and it applies to gifts of money, property, or the use of property. The donor is typically responsible for paying the gift tax. Each individual has an annual gift tax exclusion amount, which allows them to give up to a certain amount per recipient per year without incurring a gift tax. For 2023, the annual exclusion amount is $17,000 per recipient. Additionally, there is a lifetime exemption amount that applies to gifts above the annual exclusion; amounts above this lifetime exemption are subject to the gift tax. It's important to note that Oregon does not impose a state gift tax, so only the federal rules apply. Taxpayers in Oregon should complete IRS Form 709 if they have made gifts in excess of the annual exclusion amount and consult with an attorney or tax advisor for guidance specific to their situation.