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 individuals who transfer property without receiving something of equal or greater value in return. This includes money, real estate, and other types of property. In Washington State, as in all other states, the federal gift tax rules apply. The donor is typically responsible for paying the tax, which is imposed by the Internal Revenue Service (IRS). Each individual has an annual gift tax exclusion amount, which is adjusted periodically for inflation. For amounts above this exclusion, the donor must file IRS Form 709 to report the gift. The gift tax also interacts with the estate tax; gifts above the annual exclusion count against the lifetime estate and gift tax exemption. It's important to note that Washington State does not impose a state gift tax, so only the federal regulations apply. For specific advice and assistance with gift tax matters, it is recommended to consult with an attorney or a tax professional.