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 West Virginia (WV). It is imposed on the transfer of property by one person (the donor) to another (the donee) without adequate consideration in return. This tax is not specific to any type of property; it can apply to money, real estate, or other tangible or intangible items. If a person in WV gives a gift that exceeds the annual exclusion limit set by the IRS, they may need to file a Form 709, which is the United States Gift (and Generation-Skipping Transfer) Tax Return. The annual exclusion amount is adjusted periodically for inflation. It's important to note that there are some exceptions to the gift tax, such as gifts to spouses, gifts to charities, and gifts that cover another person's medical or educational expenses if paid directly to the institution. The gift tax is a federal tax and does not vary by state, so the regulations and requirements are consistent across the country, including in WV.