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.

In Nebraska, as in all states, the federal gift tax applies to transfers of property where the donor does not receive full value in return. This tax is imposed by the federal government, not the state, and it applies to gifts of money, property, or the use of property. The donor is typically responsible for paying the gift tax. Each individual has an annual gift tax exclusion amount, which is adjusted periodically for inflation. For 2023, the annual exclusion is $17,000 per recipient. Gifts that exceed this amount may require the donor to file IRS Form 709 and potentially pay gift tax. However, there is also a lifetime exemption amount that allows individuals to give away a certain total amount over their lifetime before having to pay gift tax. It's important to consult with an attorney or tax advisor to understand the implications of gift taxes on any significant transfers of property.