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 Missouri (MO). It is imposed on the transfer of property by one person (the donor) to another (the donee) without adequate consideration in return. This tax applies regardless of the donor's intent and includes money, real estate, or other types of property. If a person sells an item for less than its fair market value or extends a loan without interest or at a below-market interest rate, it may also be considered a gift for tax purposes. Each individual has an annual gift tax exclusion amount, which allows them to give gifts up to a certain value per recipient each year without incurring gift 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 calculate the tax, if any is due. It's important to note that while the federal gift tax laws are uniform across the United States, Missouri does not impose a separate state gift tax.