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 Louisiana (LA). It is imposed on the transfer of property by one individual to another while receiving nothing or less than the property's full value in return. This tax is enforced regardless of the donor's intention for the transfer to be considered a gift. The tax encompasses all types of property transfers, whether it's money, real estate, or other forms of property. If a person provides a loan without interest or at a reduced interest rate, or sells something below its market value, it may also be considered a gift for tax purposes. In Louisiana, as in other states, individuals must comply with federal regulations regarding gift taxes. Taxpayers should refer to IRS Form 709 and its instructions for details on how to report such transfers and calculate any tax owed. It's important to note that there are annual exclusions and lifetime exemptions that may apply, potentially reducing or eliminating the gift tax liability for many donors.