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 states, including Nevada (NV), and is governed by federal law, not state statutes. It is imposed on the transfer of property by one person (the donor) to another (the donor) without receiving full value in return. This tax applies regardless of the donor's intent and includes money, property, or the use of or income from property. Common examples of gifts include giving money, selling something for less than its fair market value, or providing an interest-free or low-interest loan. The donor is typically responsible for paying the gift tax. Each year, there is an annual exclusion amount for gifts that can be given without triggering the tax. For gifts that exceed the annual exclusion, the donor must file IRS Form 709. It's important to consult with an attorney or tax advisor to understand the implications of the federal gift tax, especially for significant transfers that may affect one's estate planning or tax situation.