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 across all states in the U.S., including Utah (UT). It is imposed on the transfer of property by one individual to another when the transfer is made without receiving something of equal value in return. This tax is relevant regardless of the donor's intention for the transfer to be a gift. The tax encompasses all types of property transfers, whether it's money, real estate, or other forms of property. If an individual sells something below its market value or extends a loan without interest or at a reduced interest rate, it may also be considered a gift for tax purposes. The donor is typically responsible for paying the gift tax and must file IRS Form 709 if any gifts above the annual exclusion amount are made. The annual exclusion amount allows individuals to give away a certain amount per recipient each year without incurring gift tax. For the year 2023, the annual exclusion is $17,000 per recipient. It's important to consult with an attorney or a tax advisor for personalized advice, as state laws can affect certain aspects of gift giving and taxation.