I cannot thank you enough for posting this video on how to fill out the IRS Form 709 and providing a link to the actual form you are using. I have reviewed forms, clicked on links and read a lot of information provided by the IRS website, talked with various accountants, paid extra while trying to do my taxes using online services, emailed and spoke to accountants, did many, many searches and spent hours trying to figure out what I need to do to make sure I'm being accountable in reporting my financial situation correctly to the IRS. My ex-husband and very good friend passed away and was kind enough to make me the beneficiary of his life insurance to share with our two children. I was bewildered as to what I needed to do if anything to report the gifts I gave to our two children until I watched your video this evening. You are a shining star and made something that seemed so complicated and difficult super easy to understand and work with. Thank you... thank you.... thank you!!!
OMG! I've been trying to fill that out for my mother for a week and I was stuck. The IRS instructions suck. You made it so simple! I was pulling my hare out due to one small mistake that I made that I could not find. I found it while watching your video. Even though it's ab out 5 years old, it still works and applies! Thanks!
Thank you!!!! This form is soo confusing. After hours of struggle I stumbled on your site. Excellent. I will have to rewatch a few times for this to sink in. You are a life saver.
Thank you. After looking at probably a dozen sites, this is the first one that made clear where the lifetime exemption information gets entered! Everthing else just said, basically, "enter the lifetime exemption."
Exceptionally good presentation. I just had to go back to IRS's 2020 Instructions for the 709 and figure out the amounts. It was a bit of a hassle, but confirmed everything in your video. Good job! Thank you.
Thanks for this! I had to complete this form for a straight cash gift that exceeded the exclusion threshold, so this is exactly what I needed! I actually figured it out (finally) after a lot of research and figuring out, but this helped confirm my effort!
Thank you! The only thing is unclear what does this "tax" amount ($1,9 million) after all tax computations mean? Is it what we have to really pay, or this amount goes against lifetime threshold of $12.9 for the year of 2023?
Nice form. Well done. One thing you don't mention in the video is the form says "This is the trial version. Click here to get the full calc version." And of course, clicking asks for a payment for the form of $325! I kind of expected a payment being required, but think this is excessive for a single form for a single person. Great for a tax consultant or person who does taxes for a living, but not for a single person. Just my $0.02.
If you're a CPA firm and you have 10 clients that need the form your cost is $32.50 per form. But you're right, for an individual filing just one form the math doesn't come out quite as well.
Thank you for providing this guide! We gave our daughter and son in law a gift of cash in 2021, that exceeded each of our annual exclusionary amounts, but is way way below the lifetime limit (to help them buy their house). We are filling out two gift tax forms, one for myself and one for my husband, as we are both consenting to split the gift. I believe I have figured out how to compute the tax and apply the applicable credit which nets a '0' balance on line 15 and, as there are no generation-skipping transfer taxes, a '0' balance on line 17, as well. Lines 18,19 and 20 are N/A. Would I simply stop at the 0 amount entered on line 17? Thanks very much.
John, Thanks for the very detailed explanation for form 709. Would you be able to post with an example of real estate property with how the cost basis and the gift value at the transfr date to be showed in form 709. Also if the propert is a split property between husband and wife. Thansk in advance.
One additional question for which I'd really appreciate an explanation is why the basic individual exclusion amount of $11,700,000. isn't used on line 7 (or entered anywhere on the form at all), but instead, the IRS instructs donors to enter the applicable credit amount of $4,625,800., which seems random, considering it doesn't relate to the lifetime exclusion figure. Thank you, again ~ your guidance and insights are truly appreciated!
If you compute the tax on $11,700,000 it comes to $4,625,800. So, they're really both the same thing, one is expressed as an exclusion, and the other is the exclusion expressed as a credit.
Hey thanks for the video. Hopefully you’re still there. I was wondering what does work with the manual refund? I was planning on calling IRS to see if previous year returns had to be done before filling this one or “prior year”. Which are provided for manual refund online but the question is did you do an attachment statement? I’m going to watch the video couple more times regarding the part two gift. Direct tax, which I’m guessing comes from the table? And last thing and there is a little bit of information mentioned and instructions but I’m doing this as taxpayer do you have an idea for the outright to me? Didn’t want to go grill down parent to file POA to fill hers or his out with me being son and or to her grandkid with other donations. Thanks hope you see this one.. if you had an email that would be great notifications on here from comments are hectic to stay on!
Thank you for the video and the form. I was wondering, if a non US citizen and nonresident of US gifts say (as an example) US $70K to her child (money being transferred from outside of US to a bank in US of the child) who is an adult US citizen, will the donor still need to file form 709, and if she has to file it, then does she get the annual exclusion and life time credit?
Thank you for the instructions for this form! I have one question that I'm a little bit confused about -- When completing Schedule D, Part 1, Column D for a gift to a grand nephew, am I allowed to put $15,000 in that column as I did previously in Schedule A, Part 4, Line 2 for the SAME gift to the same grand nephew? Or would that count as illegally claiming the allowed exclusion TWICE (once for Gift Tax and a second time for GST Tax)? Doing this causes the amount for Schedule D to go down by $15,000 in column E which is then the same amount that gets transferred over to Schedule D, Part 3, Column B as you show in this video. I'm assuming I am allowed to do so as it would be $15,000 excluded from the exact same monies as listed in Schedule A. Your help would be greatly appreciated! Thank you.
Hi there @pburt68: thank you for your question. I have the exact same situation. Could you share your resolution experience on this point? Is it allowed or not to use the annual exclusion on the GST?
my widowed mother gave 4 equal gifts to her four children in 2022 that exceeded the annual exclusion amounts... our tax professional is asking for her children's (gift recipient) names, address, and SSN. I dont see SSN used anywhere in your video - is that something new for 2022 or is it not necessary to include SSN? Thanks!
I have a question. If husband and wife are gift splitting all the gifts, and husband also made a gift to wife, then on Line 4 of Taxable Gift Reconciliation, do we put the whole amount that the husband gave to the wife, or do we put the half of it since they are splitting? And what is the difference between Line 4 and Line 5 of the Taxable Gift Reconciliation table?
Thank you for this form sample. Do you have one showing a married couple gifting their residence to a child? When gifting property do we need to have an appraisal done or is a current market analysis from a real estate company enough proof of current real market value? Another option would be to use the current year property tax value but not sure which would be the appropriate choice. Appraisals cost above 1,000 so would like to avoid that expense if possible.
Here's what the form instructions say: Also attach any appraisal used to determine the value of real estate or other property. If you do not attach this information, Schedule A must include a full explanation of how value was determined. Either a qualified appraisal or a detailed description of the method used to determine the fair market value of the gift. See Regulations section 301.6501(c)-1(e) and (f) for details, including what constitutes a qualified appraisal, the information required if no appraisal is provided, and the information required for transfers under sections 2701 and 2702.
Can I use a Continuation of Schedule A with the same format on another piece of paper since I have like 21 lines which will not fit on Schedule A Part 1 and just put “See Attached”? I saw an accountant doing that.
Thank you. I have two donee's. At the bottom of Schedule A it says "(If more space is needed, attach additional statements.)". Do I fill out a separate Schedule A's for each donee? How would I calculate multiple donees in Part 4 Taxable Gift Reconciliation? Attach? Staple or paperclip?
Hey John, thanks for life saving video! Question: will the form for 2022 need to be update given that the IRS inst. still says prelim? Also when I purchase the prg through PayPal, I get the code from whom? (PayPal or pdftax). Is there a way to pay and give you my email for backup of proof of purchase? Thank you!
Got a question, can’t find it any where in fact hardly anything talks about “cash gift only” including the IRS instructions on filling out Form 709; do I need to send supporting documents if I only sent cash only via paypal/xoom throughout the year, and this is my first time ever filing a Form 709, thanks!
If donors are married and gift splitting, I understand both must file gift tax returns separately. However, for the annual exclusion, will both forms be the combined exclusion of $36000 ($18k exclusion each for tax year 2024) Or just one of $18k on each individual form?
Great video - thanks for providing this. I gave my son cash every month. Can I just enter that once on Schedule A and put the date as various, or do I need to have 12 entries. If I need 12 entries do I need to put his name, address, relationship and type for each entry? Thanks again, Mike
Do you have a video showing split gifts with spouse? Page 11 of instructions for 2020, Part 4 Taxable Gift Reconciliation, Line 1 states "if gift splitting has been elected, enter only the value of the gift that is attributable to the spouse that is filing the return". Samples of completed forms I've seen show the sum of both spouses on Line 1. Can you explain?
Well first, unlike form 1040, there is no such thing as a joint gift tax return. So, for split gifts both spouses must file form 709. If in a given year both spouses made a split gift then each spouse would include on half of the amount he or she made and one half of the amount that the other spouse made. Each spouse includes one half of the amount of the other spouse's gift because it is attributable to the spouse filing the return even though it was made by the other spouse.
In the example where $10,000,000 is gifted in the previous year, should you subtract the annual exclusion of $15,000? I.e. $9,985,000 in line 2 for taxable gifts
Yes, assuming there is just one donee. You get 15K per donee. (16K for 2022) So in this example if there was just one donee, and the amount of the gift was $10,015,000, then $10,000,000 would be correct.
Hello, It is a very helpful video.. thank you very much... but I have a question at 6:40 about schedule B when you are adding the 10,000,000 as a prior gift, for column E, it says the amount of taxable gift, is this should be the whole amount or it should be the amount after the annual exclusion? Thank you
If the husband plans to give the university the remainder interest in their house after he and his wife dies, then do we count that as a charitable deductions under Part 4 (Taxable gift reconciliation)?
Would you have a self-calculating form like this for 2019? Just found out I should have filled one out for my mother for a quitclaim deed she made out to me :/
if i donate or give 1000 dollar to some random person that needs help on gofundme, do i have to worry about any tax implications and do i have to report/mention anything about it when i file taxes? Or NO because its under the annual gift tax exclusion which is around 16,000?
Here's what the form instructions say: If you gave gifts to someone in 2021 totaling more than $15,000 (other than to your spouse), you probably must file Form 709. But see Transfers Not Subject to the Gift Tax and Gifts to Your Spouse, later, for more information on specific gifts that are not taxable.
Can you file a form 709 late (like years later)? So a married couple gifted their property to their 2 kids back in 2019 appraised about $160-170,000. The lawyer that was working with them never mentioned about form 709, so the couple had no idea. Now in 2022, they are just finding out about it. The tax deadline has passed. Do they wait until 2023 to file? When they file will they have to use the forms in 2019? Do they have to put the fair market value of it at the time of filing or the value back in 2019? Will there be any late fees? Thank you in advance for helping in any way.
They should use the 2019 form and the 2019 appraised value. The appraisal should be attached to the tax return. The late filing penalty is based on the tax due on the return. Since the amount of the gift is less than the 2019 exclusion amount there should not be any tax due nor any late filing penalty.
Thanks for how to file 709 form. I tried to download year 2021 709 form but there is only year 2020 is available to download. My father made gift 2021 and passed away same year. Therefore, I need to file his gift tax for him. Do I have to wait until next year and download 2021 form?
For multiple gifts of cash to the same person on different dates does the attached statement need to repeat the address and relationship for each numbered entry? Or can I leave that off?
Question : In Example 2 ( 7:59), we assumed that this person gifted Ogden $10m in 2019. Can we assume that the person also filed Form 709 in 2020 ? Rephrase : Every year you gift someone, you need to file 709. However, every 709 file is a "paper-trail" and is linked to the all your gift history in your life....Is that right ? Question 2 : Any advantage of having Spouse in 709 and divide by 2 ?
Gift splitting allows you and your spouse to double the exclusion. Here's a good explanation of how it works: www.investopedia.com/terms/g/gift-splitting.asp#:~:text=Gift%20splitting%20allows%20a%20married,and%20file%20joint%20tax%20returns.&text=Couples%20whose%20gifts%20exceed%20the,Form%20709%20with%20the%20IRS. Ogden is the name of the IRS service center where the gift tax return was filed, as in Ogden, Utah. And yes to form 709 being a paper trail.
I don't understand in Part 2 - Line 4, how did you get that number? I referred to the Table of Computing Tax and do not get the same number. Isn't the calculation 4,985,000 x 40%?
That's not how the tax table works. Look at the instruction for column D of the table. The 40% is applied to the excess over the amount in column A. So, 4,985,000 - 1,000,000 = 3,985,000. Then 3,985,000 x .40 = 1,594,000. Then add the amount in column C. So 1,594,000 + 345,800 = 1,939,800.
Does completing the form 709 automatically apply the gift to the lifetime excemption? I have read the IRS instructions and other resources and I have not been able to solidify what (if any) section to apply it towards the lifetime exemption. Thanks
@@pdftax8031 and sorry one last clarification. If I am doing a first-time filing to report a $$ gift for a down payment to my son (my husband and I will be splitting) do we only fill out part 1 and 2 on page one and then schedule A part 1 and 4? Just wanted to make sure nothing gets left undone. If we had had the time and known what just “filing a form” really meant I would have done things much differently. It is much more intimidating than I’d imagined. Thank you so much for providing your video!
I gave money to my son and his wife for a house they bought. Should I put both of their names on Schedule A, Part 1 or fill out a second Form 709, or just put down my son's name for the entire amount since I will never reach the lifetime gift threshold?
You only need one form 709 each year no matter how many gifts you give to how many persons. Both your son and wife can go on the same schedule A on one form 709.
Hi: I am planning to buy the pdf access online, however, I have a question. I added money to my child's 529 account and also to a custodial brokerage account. The total amount is greater than $15k. Can you please guide me as to which section I need to fill out to report this, please? Thanks
Schedule A, Part 1. But you should also look at the form instructions, page 7. There is an election you can make to spread the contribution over a 5 year period.
In 2019 Sam gave his son 10 million. Is that after the yearly $15,000 annual deduction for 2019? That has me confused. Thank you for your kindness in creating this video.
Hi, this tool looks great. Do you know if there is a way to use it on a ChromeBook? I installed the Adobe Acrobat Reader app but it does not seem to compute?
In the example where you add 10,000,000 from the prior year, what happens to the 15,000 exclusion? If 10,000,000 was gifted, should the prior year addition on line 2 have been 9,985,000. If a couple give a single child 30,000 in 2021 - the amount of the exclusion - should Line 2 be 0 (zero) on 2022 709 from?
Yes, you are correct. Schedule B needs the amount of taxable gifts. So if 10,000,000 was entered that assumes that 10,015,000 was actually gifted in the prior year. Line 2 will be zero only if the couple elects to split gifts so each spouse would file form 709 and report a 15,000 taxable gift offset by an exclusion of the same amount.
@@pdftax8031 Thanks so much for your reply - especially during tax season!! I was under the impression that only one parent needed to file a 709, if the gift met the exclusion - 32,000 for 2022 - if they fill out the gift splitting section of the form. Is that correct?
What if you gave all three of your children a home in 2023. Each house was free and clear. Do you do this form the same and do you fill out a separate form for each one?
I do not understand how you came up with YOUR figure on line 4 of part 2. I did'nt see that number on the table. I would .have used the 345,800 figure.
Line 4 says to calculate the tax based on the amount on line 3. The amount on line 3 is 16,353,000. The tax table is found on page 20 of the instructions. It's computed as follows. Add the base amount in column C, which is 345,800 and the rate amount in column D, which is 40% of the excess over the amount in column A. The amount in column A is 1,000,000, so the excess is 16,353,000 minus 1,000,000 equals 15,353,000. Then 15,353,000 times .40 equals 6,141,200. And 6,141,200 plus 345, 800 equals 6,487,000.
I am struggling with Part 2 Line 7 and I cannot afford the software right now. How can I calculate that line? Edit: If I understand your explanation correctly, my part 2 line 7 will be the total amount owed, as I should be totally covered by the exclusion. Does that sound right?
Look at the instruction for column D of the table. The 40% is applied to the excess over the amount in column A. So, 4,985,000 - 1,000,000 = 3,985,000. Then 3,985,000 x .40 = 1,594,000. Then add the amount in column C. So 1,594,000 + 345,800 = 1,939,800.
@@pdftax8031 wondered if I could download whatever the latest form is you have? I need to see if I can do this myself vs hiring a professional. It looked confusing but of course it would be since I never did this before. My wife gifted 100K to her daughter and everyone told me that no taxes would be required cause of a lifetime $12million exclusion. In watching this video, I had a hard time seeing how the form would be filled out with that exclusion. I think I would like to do a test run by myself using your form. Can you tell me if you will have a 2022 version or not? I assume I could practice with your latest...is this correct? Should I just use the link above to obtain the interactive form? Appreciate your help
Take a look at schedule B. The taxpayer made a 10,000,000 gift in a prior year. Therefore most of exclusion was used in a prior year. In addition there is a generation skipping transfer tax on schedule D.
That's not how the tax table works. Look at the instruction for column D of the table. The 40% is applied to the excess over the amount in column A. So, 4,985,000 - 1,000,000 = 3,985,000. Then 3,985,000 x .40 = 1,594,000. Then add the amount in column C. So 1,594,000 + 345,800 = 1,939,800.
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I cannot thank you enough for posting this video on how to fill out the IRS Form 709 and providing a link to the actual form you are using. I have reviewed forms, clicked on links and read a lot of information provided by the IRS website, talked with various accountants, paid extra while trying to do my taxes using online services, emailed and spoke to accountants, did many, many searches and spent hours trying to figure out what I need to do to make sure I'm being accountable in reporting my financial situation correctly to the IRS. My ex-husband and very good friend passed away and was kind enough to make me the beneficiary of his life insurance to share with our two children. I was bewildered as to what I needed to do if anything to report the gifts I gave to our two children until I watched your video this evening. You are a shining star and made something that seemed so complicated and difficult super easy to understand and work with.
Thank you... thank you.... thank you!!!
You are very welcome.
OMG! I've been trying to fill that out for my mother for a week and I was stuck. The IRS instructions suck. You made it so simple! I was pulling my hare out due to one small mistake that I made that I could not find. I found it while watching your video. Even though it's ab out 5 years old, it still works and applies! Thanks!
Thank you!!!! This form is soo confusing. After hours of struggle I stumbled on your site. Excellent. I will have to rewatch a few times for this to sink in. You are a life saver.
Glad it was helpful!
Thank you. After looking at probably a dozen sites, this is the first one that made clear where the lifetime exemption information gets entered! Everthing else just said, basically, "enter the lifetime exemption."
Exceptionally good presentation. I just had to go back to IRS's 2020 Instructions for the 709 and figure out the amounts. It was a bit of a hassle, but confirmed everything in your video. Good job! Thank you.
This was a wonderful explanation of form 709 and am tickled you supplied the info!
Thank you for a great how-to video on completing Form 709! I appreciated your explanation of Part 2, line 7, the Lifetime Credit.
Thank you so much! It is so helpful. I was scratching my head, and then found out your step by step video that save my life.
Glad it helped!
Thank you. This is the second year I have used your video and software. It is very helpful.
Thanks for this! I had to complete this form for a straight cash gift that exceeded the exclusion threshold, so this is exactly what I needed! I actually figured it out (finally) after a lot of research and figuring out, but this helped confirm my effort!
Thanks.
Thank you for taking the time to help us!!
Another HUGE THANK YOU!!! You make a head spinning complicated form EASY!!! You are a sanity saver!!!:)
You're a life saver!! I kept putting this on off, but a little research goes a long way 💌
Thank you for this walk through. Very helpful.
Really informative video. Thanks John!!
Thanks for the informative tutorial! Helped a lot :)
Thank you so much for making the tax computation clear. The instructions have me frustrated and confused.
Thank you! Video is extremely helpful and time saving.
This is FANTASTIC!!!! Have you made one for the 706 form?
Very helpful video! Thank you!!
Thank you so much for the help!
Very helpful resource!
Thumbs up and much appreciated!
Thank you! The only thing is unclear what does this "tax" amount ($1,9 million) after all tax computations mean? Is it what we have to really pay, or this amount goes against lifetime threshold of $12.9 for the year of 2023?
Nice form. Well done. One thing you don't mention in the video is the form says "This is the trial version. Click here to get the full calc version." And of course, clicking asks for a payment for the form of $325! I kind of expected a payment being required, but think this is excessive for a single form for a single person. Great for a tax consultant or person who does taxes for a living, but not for a single person. Just my $0.02.
If you're a CPA firm and you have 10 clients that need the form your cost is $32.50 per form. But you're right, for an individual filing just one form the math doesn't come out quite as well.
Thank you for providing this guide! We gave our daughter and son in law a gift of cash in 2021, that exceeded each of our annual exclusionary amounts, but is way way below the lifetime limit (to help them buy their house). We are filling out two gift tax forms, one for myself and one for my husband, as we are both consenting to split the gift. I believe I have figured out how to compute the tax and apply the applicable credit which nets a '0' balance on line 15 and, as there are no generation-skipping transfer taxes, a '0' balance on line 17, as well. Lines 18,19 and 20 are N/A. Would I simply stop at the 0 amount entered on line 17? Thanks very much.
Yes correct, although it wouldn't hurt to put 0's on 18, 19, and 20.
John, Thanks for the very detailed explanation for form 709. Would you be able to post with an example of real estate property with how the cost basis and the gift value at the transfr date to be showed in form 709. Also if the propert is a split property between husband and wife. Thansk in advance.
Thank you for the informaiton, it helped out a lot
Great video, thank you
One additional question for which I'd really appreciate an explanation is why the basic individual exclusion amount of $11,700,000. isn't used on line 7 (or entered anywhere on the form at all), but instead, the IRS instructs donors to enter the applicable credit amount of $4,625,800., which seems random, considering it doesn't relate to the lifetime exclusion figure. Thank you, again ~ your guidance and insights are truly appreciated!
If you compute the tax on $11,700,000 it comes to $4,625,800. So, they're really both the same thing, one is expressed as an exclusion, and the other is the exclusion expressed as a credit.
Hey thanks for the video. Hopefully you’re still there. I was wondering what does work with the manual refund? I was planning on calling IRS to see if previous year returns had to be done before filling this one or “prior year”. Which are provided for manual refund online but the question is did you do an attachment statement? I’m going to watch the video couple more times regarding the part two gift. Direct tax, which I’m guessing comes from the table? And last thing and there is a little bit of information mentioned and instructions but I’m doing this as taxpayer do you have an idea for the outright to me? Didn’t want to go grill down parent to file POA to fill hers or his out with me being son and or to her grandkid with other donations. Thanks hope you see this one.. if you had an email that would be great notifications on here from comments are hectic to stay on!
Thank you for the video and the form. I was wondering, if a non US citizen and nonresident of US gifts say (as an example) US $70K to her child (money being transferred from outside of US to a bank in US of the child) who is an adult US citizen, will the donor still need to file form 709, and if she has to file it, then does she get the annual exclusion and life time credit?
Thank you for the instructions for this form!
I have one question that I'm a little bit confused about -- When completing Schedule D, Part 1, Column D for a gift to a grand nephew, am I allowed to put $15,000 in that column as I did previously in Schedule A, Part 4, Line 2 for the SAME gift to the same grand nephew? Or would that count as illegally claiming the allowed exclusion TWICE (once for Gift Tax and a second time for GST Tax)? Doing this causes the amount for Schedule D to go down by $15,000 in column E which is then the same amount that gets transferred over to Schedule D, Part 3, Column B as you show in this video. I'm assuming I am allowed to do so as it would be $15,000 excluded from the exact same monies as listed in Schedule A. Your help would be greatly appreciated! Thank you.
Hi there @pburt68: thank you for your question.
I have the exact same situation. Could you share your resolution experience on this point? Is it allowed or not to use the annual exclusion on the GST?
If gifts are given to more than one child though the year, do you use multiple Schedule A's (one per donee) or a separate Form 709 per donee?
hi, do you have an example of how to do gift tax on house for giving to son from both parent?
Very helpful thanks
my widowed mother gave 4 equal gifts to her four children in 2022 that exceeded the annual exclusion amounts... our tax professional is asking for her children's (gift recipient) names, address, and SSN. I dont see SSN used anywhere in your video - is that something new for 2022 or is it not necessary to include SSN? Thanks!
I have a question. If husband and wife are gift splitting all the gifts, and husband also made a gift to wife, then on Line 4 of Taxable Gift Reconciliation, do we put the whole amount that the husband gave to the wife, or do we put the half of it since they are splitting? And what is the difference between Line 4 and Line 5 of the Taxable Gift Reconciliation table?
Do we file this online ? Or should this only be mailed ?
Do we get any confirmation after filing it ?
Thank you !
Thanks. How do I fill out 709 for Irrevocable trust?
Thank you for this form sample. Do you have one showing a married couple gifting their residence to a child? When gifting property do we need to have an appraisal done or is a current market analysis from a real estate company enough proof of current real market value? Another option would be to use the current year property tax value but not sure which would be the appropriate choice. Appraisals cost above 1,000 so would like to avoid that expense if possible.
Here's what the form instructions say:
Also attach any appraisal used to
determine the value of real estate or other
property.
If you do not attach this information,
Schedule A must include a full explanation
of how value was determined.
Either a qualified appraisal or a detailed
description of the method used to
determine the fair market value of the gift.
See Regulations section
301.6501(c)-1(e) and (f) for details,
including what constitutes a qualified
appraisal, the information required if no
appraisal is provided, and the information
required for transfers under sections 2701
and 2702.
Can I use a Continuation of Schedule A with the same format on another piece of paper since I have like 21 lines which will not fit on Schedule A Part 1 and just put “See Attached”? I saw an accountant doing that.
Yes. In fact that's what the form instructions say you should do.
Thank you. I have two donee's. At the bottom of Schedule A it says "(If more space is needed, attach additional statements.)".
Do I fill out a separate Schedule A's for each donee? How would I calculate multiple donees in Part 4 Taxable Gift Reconciliation?
Attach? Staple or paperclip?
Hey John, thanks for life saving video! Question: will the form for 2022 need to be update given that the IRS inst. still says prelim? Also when I purchase the prg through PayPal, I get the code from whom? (PayPal or pdftax). Is there a way to pay and give you my email for backup of proof of purchase? Thank you!
The 2022 version is available here. The code is from pdftax. Your receipt is proof of purchase.
Got a question, can’t find it any where in fact hardly anything talks about “cash gift only” including the IRS instructions on filling out Form 709; do I need to send supporting documents if I only sent cash only via paypal/xoom throughout the year, and this is my first time ever filing a Form 709, thanks!
Just describe the gift as cash. No documentation needed.
If donors are married and gift splitting, I understand both must file gift tax returns separately. However, for the annual exclusion, will both forms be the combined exclusion of $36000 ($18k exclusion each for tax year 2024) Or just one of $18k on each individual form?
Great video - thanks for providing this. I gave my son cash every month. Can I just enter that once on Schedule A and put the date as various, or do I need to have 12 entries.
If I need 12 entries do I need to put his name, address, relationship and type for each entry?
Thanks again,
Mike
Just one should be fine.
My father transfer me for the first time in stocks, will this be easy to complete this form?
Do you have a video showing split gifts with spouse?
Page 11 of instructions for 2020, Part 4 Taxable Gift Reconciliation, Line 1 states "if gift splitting has been elected, enter only the value of the gift that is attributable to the spouse that is filing the return". Samples of completed forms I've seen show the sum of both spouses on Line 1. Can you explain?
Well first, unlike form 1040, there is no such thing as a joint gift tax return. So, for split gifts both spouses must file form 709. If in a given year both spouses made a split gift then each spouse would include on half of the amount he or she made and one half of the amount that the other spouse made. Each spouse includes one half of the amount of the other spouse's gift because it is attributable to the spouse filing the return even though it was made by the other spouse.
In the example where $10,000,000 is gifted in the previous year, should you subtract the annual exclusion of $15,000? I.e. $9,985,000 in line 2 for taxable gifts
Yes, assuming there is just one donee. You get 15K per donee. (16K for 2022) So in this example if there was just one donee, and the amount of the gift was $10,015,000, then $10,000,000 would be correct.
How do you get figured for Line 4?
Is a non resident someone NOT living in the USA at the time if gift?
Do dual citizens of the USA and another country simple enter "USA" on Part 1, line 7, or list both citizenships? Thanks.
Hello, It is a very helpful video.. thank you very much... but I have a question at 6:40 about schedule B when you are adding the 10,000,000 as a prior gift, for column E, it says the amount of taxable gift, is this should be the whole amount or it should be the amount after the annual exclusion? Thank you
After annual exclusion.
If the husband plans to give the university the remainder interest in their house after he and his wife dies, then do we count that as a charitable deductions under Part 4 (Taxable gift reconciliation)?
Would you have a self-calculating form like this for 2019? Just found out I should have filled one out for my mother for a quitclaim deed she made out to me :/
Sorry, no we don't.
if i donate or give 1000 dollar to some random person that needs help on gofundme, do i have to worry about any tax implications and do i have to report/mention anything about it when i file taxes? Or NO because its under the annual gift tax exclusion which is around 16,000?
Here's what the form instructions say: If you gave gifts to someone in 2021
totaling more than $15,000 (other than to
your spouse), you probably must file Form
709. But see Transfers Not Subject to the
Gift Tax and Gifts to Your Spouse, later,
for more information on specific gifts that
are not taxable.
Can you file a form 709 late (like years later)? So a married couple gifted their property to their 2 kids back in 2019 appraised about $160-170,000. The lawyer that was working with them never mentioned about form 709, so the couple had no idea. Now in 2022, they are just finding out about it. The tax deadline has passed. Do they wait until 2023 to file? When they file will they have to use the forms in 2019? Do they have to put the fair market value of it at the time of filing or the value back in 2019? Will there be any late fees? Thank you in advance for helping in any way.
They should use the 2019 form and the 2019 appraised value. The appraisal should be attached to the tax return. The late filing penalty is based on the tax due on the return. Since the amount of the gift is less than the 2019 exclusion amount there should not be any tax due nor any late filing penalty.
@@pdftax8031 Thank you! Just to make sure, they can do this asap and not have to wait until the next tax filing year right?
If I buy the automated form is it only good for that tax year? Or can you use it for future years?
Just one year.
Thanks for how to file 709 form. I tried to download year 2021 709 form but there is only year 2020 is available to download. My father made gift 2021 and passed away same year. Therefore, I need to file his gift tax for him. Do I have to wait until next year and download 2021 form?
Yes , the 2021 version is not yet available on the IRS website.
For multiple gifts of cash to the same person on different dates does the attached statement need to repeat the address and relationship for each numbered entry? Or can I leave that off?
Best to include it so there's no confusion.
@@pdftax8031 thankyou
Question : In Example 2 ( 7:59), we assumed that this person gifted Ogden $10m in 2019. Can we assume that the person also filed Form 709 in 2020 ?
Rephrase : Every year you gift someone, you need to file 709. However, every 709 file is a "paper-trail" and is linked to the all your gift history in your life....Is that right ?
Question 2 : Any advantage of having Spouse in 709 and divide by 2 ?
Gift splitting allows you and your spouse to double the exclusion. Here's a good explanation of how it works:
www.investopedia.com/terms/g/gift-splitting.asp#:~:text=Gift%20splitting%20allows%20a%20married,and%20file%20joint%20tax%20returns.&text=Couples%20whose%20gifts%20exceed%20the,Form%20709%20with%20the%20IRS.
Ogden is the name of the IRS service center where the gift tax return was filed, as in Ogden, Utah. And yes to form 709 being a paper trail.
I need an example of a GST gift/non trust - how to complete rest of forms. IRS is not clear.
Do we have to print out page 4 and page 5 to file Form 709, even though we don't need to fill out SCHEDULE C & SCHEDULE D? Thank you so much!
If those pages are blank then no.
@@pdftax8031 Truly appreciate your kindness in assisting us! Have a great day, Sir!
Can I gift my friend the max for that tax year for the next 20 years with out filing a IRS Form 709 (Gift Tax Return)?
I don't understand in Part 2 - Line 4, how did you get that number? I referred to the Table of Computing Tax and do not get the same number. Isn't the calculation 4,985,000 x 40%?
That's not how the tax table works. Look at the instruction for column D of the table. The 40% is applied to the excess over the amount in column A. So, 4,985,000 - 1,000,000 = 3,985,000. Then 3,985,000 x .40 = 1,594,000. Then add the amount in column C. So 1,594,000 + 345,800 = 1,939,800.
Does completing the form 709 automatically apply the gift to the lifetime excemption? I have read the IRS instructions and other resources and I have not been able to solidify what (if any) section to apply it towards the lifetime exemption. Thanks
Yes it does.
@@pdftax8031 Thanks. So is it line 12/14 of ‘part 2 tax computation’?
@@pdftax8031 and sorry one last clarification. If I am doing a first-time filing to report a $$ gift for a down payment to my son (my husband and I will be splitting) do we only fill out part 1 and 2 on page one and then schedule A part 1 and 4? Just wanted to make sure nothing gets left undone. If we had had the time and known what just “filing a form” really meant I would have done things much differently. It is much more intimidating than I’d imagined. Thank you so much for providing your video!
I gave money to my son and his wife for a house they bought. Should I put both of their names on Schedule A, Part 1 or fill out a second Form 709, or just put down my son's name for the entire amount since I will never reach the lifetime gift threshold?
You only need one form 709 each year no matter how many gifts you give to how many persons. Both your son and wife can go on the same schedule A on one form 709.
How can I get this particular form that auto computes and has the yellow guided point fields?
pdftax.com/
Hi: I am planning to buy the pdf access online, however, I have a question. I added money to my child's 529 account and also to a custodial brokerage account. The total amount is greater than $15k. Can you please guide me as to which section I need to fill out to report this, please? Thanks
Schedule A, Part 1. But you should also look at the form instructions, page 7. There is an election you can make to spread the contribution over a 5 year period.
if one is single, should one skip line 12 altogether? or check "no"?
The instructions don't address that specifically, but I would answer no.
So when I click link it says 2021 is there one I can use for now? I plan on getting gift in a week or so
You can get it here: pdftax.com/
In 2019 Sam gave his son 10 million. Is that after the yearly $15,000 annual deduction for 2019? That has me confused. Thank you for your kindness in creating this video.
On the form the 15K is subtracted from the 10 milion.
Thankyou!
Hi, this tool looks great. Do you know if there is a way to use it on a ChromeBook? I installed the Adobe Acrobat Reader app but it does not seem to compute?
When and where will your 709 be available for 2021?
It depends on when the IRS releases the 2021 version. Our best guess is that will be sometime mid December. It will be available here: pdftax.com/
In the example where you add 10,000,000 from the prior year, what happens to the 15,000 exclusion? If 10,000,000 was gifted, should the prior year addition on line 2 have been 9,985,000.
If a couple give a single child 30,000 in 2021 - the amount of the exclusion - should Line 2 be 0 (zero) on 2022 709 from?
Yes, you are correct. Schedule B needs the amount of taxable gifts. So if 10,000,000 was entered that assumes that 10,015,000 was actually gifted in the prior year.
Line 2 will be zero only if the couple elects to split gifts so each spouse would file form 709 and report a 15,000 taxable gift offset by an exclusion of the same amount.
@@pdftax8031 Thanks so much for your reply - especially during tax season!! I was under the impression that only one parent needed to file a 709, if the gift met the exclusion - 32,000 for 2022 - if they fill out the gift splitting section of the form. Is that correct?
I purchased the software but how do i get the code to get full cal version
Click the support button on the form if you didn't get it with your payment.
Hey John where is for this year 2022
The IRS hasn't yet released the 2022 version and they won't until December. The due date for the 2022 return is April, 15 2023.
Completely skipped the DSUE which I assume is really common. It was what I needed help with. Oh well.
What if you gave all three of your children a home in 2023. Each house was free and clear. Do you do this form the same and do you fill out a separate form for each one?
Just one form 709 for each year you give a gift.
I do not understand how you came up with YOUR figure on line 4 of part 2. I did'nt see that number on the table. I would .have used the 345,800 figure.
Line 4 says to calculate the tax based on the amount on line 3. The amount on line 3 is 16,353,000. The tax table is found on page 20 of the instructions. It's computed as follows. Add the base amount in column C, which is 345,800 and the rate amount in column D, which is 40% of the excess over the amount in column A. The amount in column A is 1,000,000, so the excess is 16,353,000 minus 1,000,000 equals 15,353,000. Then 15,353,000 times .40 equals 6,141,200. And 6,141,200 plus 345, 800 equals 6,487,000.
@@pdftax8031 thank you
@@pdftax8031 So on a $20,000 I would put $900 on Line 4? 18% 0f $5,000
I am struggling with Part 2 Line 7 and I cannot afford the software right now. How can I calculate that line?
Edit: If I understand your explanation correctly, my part 2 line 7 will be the total amount owed, as I should be totally covered by the exclusion. Does that sound right?
Part 2, line 7 comes from the Table of Basic Exclusion and Credit Amounts on page 17 of the form instructions.
it is asking for a code to get full calculations.
How to decide “donor’s adjusted basis” of a property gift on schedule A part I: D?
Generally for real estate that mean cost plus improvements less depreciation.
@@pdftax8031 Thank you for response. This is very helpful. What depreciation method is available and how many years to depreciate for real estate?
@@stanleychang9963 Depends on whether it's residential or commercial and when it was placed in service.
i can't keep up with the Jones
Me neither.
How was line 4 computed to 1,939,800 ?
Look at the instruction for column D of the table. The 40% is applied to the excess over the amount in column A. So, 4,985,000 - 1,000,000 = 3,985,000. Then 3,985,000 x .40 = 1,594,000. Then add the amount in column C. So 1,594,000 + 345,800 = 1,939,800.
do you have the form for year 2022?
The IRS hasn't released the form yet.
@@pdftax8031 wondered if I could download whatever the latest form is you have? I need to see if I can do this myself vs hiring a professional. It looked confusing but of course it would be since I never did this before. My wife gifted 100K to her daughter and everyone told me that no taxes would be required cause of a lifetime $12million exclusion. In watching this video, I had a hard time seeing how the form would be filled out with that exclusion. I think I would like to do a test run by myself using your form. Can you tell me if you will have a 2022 version or not? I assume I could practice with your latest...is this correct? Should I just use the link above to obtain the interactive form? Appreciate your help
What your fee for this service?
You can get the form here:
pdftax.com/
So the illustration tells us we will owe money afterwards🤷🏾♂️🤷🏾♂️🤷🏾♂️???
Values don't auto populate like the video shows on my PDF
You need to open the form with Adobe Acrobat Reader.
The software does not work!
You need to open the form with Adobe Acrobat Reader. The calculations won't run in a browser.
Mail or efile?
The IRS does not support e-filing of form 709.
Ty for your response @@pdftax8031
Your form does not make sense, the lifetime exclusion of $11,700,000 should yield NO tax on the form in your video but you show a balance due?
Take a look at schedule B. The taxpayer made a 10,000,000 gift in a prior year. Therefore most of exclusion was used in a prior year. In addition there is a generation skipping transfer tax on schedule D.
@@pdftax8031 Sorry!
The math computation is wrong. 40% of 4,985,000=1,994,000 NOT 1,939,800 As shown in the video.
That's not how the tax table works. Look at the instruction for column D of the table. The 40% is applied to the excess over the amount in column A. So, 4,985,000 - 1,000,000 = 3,985,000. Then 3,985,000 x .40 = 1,594,000. Then add the amount in column C. So 1,594,000 + 345,800 = 1,939,800.
Thank you!
Thank you!