Gift tax valuation in the USA refers to the process of determining the fair market value of a gifted asset for tax purposes. The IRS requires an accurate valuation to ensure proper tax compliance. Factors such as the type of asset, market conditions, and appraisal methods influence the valuation. Real estate, stocks, and business interests often require professional appraisals, while cash gifts are valued at face value. The annual exclusion limit and lifetime exemption also impact tax liability. Proper documentation and valuation methods are essential to avoid disputes with tax authorities and ensure compliance with federal gift tax regulations.