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 any transfer of property where the donor does not receive full value in return, and it is enforced regardless of the donor's intent for the transfer to be a gift. This includes money, property, or the use of or income from property. Instances such as selling an item for less than its value or offering an interest-free or reduced-interest loan can also be considered as gifts. In Wisconsin, as in all states, the federal gift tax rules apply. Taxpayers must use IRS Form 709 to report such transfers and calculate any tax owed. The form's instructions provide further details on when the tax applies, how to calculate it, and any available exclusions or deductions, such as the annual exclusion from gift tax for gifts up to a certain amount per donee or the lifetime exemption amount. It's important to consult with an attorney or tax advisor for personalized advice, as state laws do not alter the federal gift tax regulations but may have additional considerations for estate planning.