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 a nationwide tax that applies to any individual who gives a gift to another person without receiving something of equal or greater value in return. This tax is not specific to Utah (UT) but is a federal law that affects all states. In Utah, as in other states, individuals must consider the federal gift tax when transferring property or money. The tax applies to various types of property, including cash, real estate, and other tangible or intangible items. If an individual sells something below its market value or extends a loan without interest or at a reduced interest rate, it may also be considered a gift for tax purposes. The donor is typically responsible for paying the gift tax and must file IRS Form 709 if the gift exceeds the annual exclusion limit set by the IRS. The annual exclusion amount is periodically adjusted for inflation. It's important to consult with an attorney or tax advisor to understand the implications of the federal gift tax on any gifts made, as well as to ensure compliance with filing requirements and to explore any available exclusions or deductions.