Blank IRS 709 PDF Form

Document Preview

Form Specifications

IRS 709: Usage Guidelines

Your Questions, Answered

Common mistakes

Documents used along the form

Similar forms

Dos and Don'ts

Misconceptions

Key takeaways

⇨

The IRS Form 709 is a crucial document used to report gifts that exceed the annual exclusion limit set by the Internal Revenue Service. This form helps ensure compliance with federal tax regulations regarding gift taxes. Understanding its requirements can simplify the process of managing your financial gifts—consider filling it out by clicking the button below.

Article Guide

The IRS 709 form plays a crucial role in the realm of gift and estate planning. It is primarily used to report gifts made during the tax year that exceed the annual exclusion limit set by the IRS. Understanding the nuances of this form can help individuals navigate their financial responsibilities effectively. Each year, taxpayers must consider their gifting strategies, especially when large sums of money or valuable assets are involved. This form not only helps in tracking gifts but also ensures compliance with federal tax regulations. Additionally, it provides a mechanism for individuals to utilize their lifetime gift tax exemption, which can significantly impact estate planning. Knowing when and how to file the IRS 709 form can alleviate potential tax burdens and ensure that individuals make informed decisions about their wealth transfer strategies.

	Form 709	United States Gift (and Generation-Skipping Transfer) Tax Return

	Department of the Treasury	Go to www.irs.gov/Form709 for instructions and the latest information.
	Department of the Treasury	(For gifts made during calendar year 2024)
	Internal Revenue Service	(For gifts made during calendar year 2024)

Part I General Information

OMB No. 1545-0020

2024

1Donor’s first name and middle initial

2Donor’s last name

3 Donor’s social security number

4Address (number and street). If you have a P.O. box, see instructions.

5Apt. no.

6City, town, or post office. If you have a foreign address, also complete spaces below.

7State

8ZIP code

9Foreign country name

10Foreign province/state/county

11Foreign postal code

12Legal residence (domicile)

13Citizenship (see instructions)

14	If the donor died during the year, check here	and enter date of death	,	.
15	If an amended return, check here
16	If you extended the time to file this Form 709, check here

17Enter the total number of donees listed on Schedule A. Count each person only once

18a	Have you (the donor) previously filed a Form 709 (or 709-A) for any other year? If “No,” skip line 18b
b	Has your address changed since you last filed Form 709 (or 709-A)?

19Gifts by spouses to third parties. Did you and your spouse make gifts to third parties? See instructions. (If the answer is “Yes,”

complete Part III on page 2.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

20Have you applied a deceased spousal unused exclusion (DSUE) amount received from a predeceased spouse to a gift or gifts

reported on this or a previous Form 709? If “Yes,” complete Schedule C

. . . . . . . . . . . . . . . .

21Does any gift or other transfer reported on this Form 709 include a digital asset (or a financial interest in a digital asset)? See instructions

Part II Tax Computation

Yes No

1	Enter the amount from Schedule A, Part 4, line 11
2	Enter the amount from Schedule B, line 3
3	Total taxable gifts. Add lines 1 and 2
4	Tax computed on amount on line 3 (see Table for Computing Gift Tax in instructions)
5	Tax computed on amount on line 2 (see Table for Computing Gift Tax in instructions)
6	Balance. Subtract line 5 from line 4	. . . . . . . . . . . . . . . . . . . . . . .

7Applicable credit amount. If donor has DSUE amount from predeceased spouse(s) or Restored Exclusion Amount,


	enter amount from Schedule C, line 5; otherwise, see instructions	. . . . . . . . . . . . . .
8	Enter the applicable credit against tax allowable for all prior periods from Schedule B, line 1, col. (c)		. . . .
9	Balance. Subtract line 8 from line 7. Do not enter less than zero

10Enter 20% (0.20) of the amount allowed as a specific exemption for gifts made after September 8, 1976, and

	before January 1, 1977. See instructions
11	Balance. Subtract line 10 from line 9. Do not enter less than zero
12	Applicable credit. Enter the smaller of line 6 or line 11
13	Credit for foreign gift taxes. See instructions
14	Total credits. Add lines 12 and 13
15	Balance. Subtract line 14 from line 6. Do not enter less than zero
16	Generation-skipping transfer taxes from Schedule D, Part 3, col. (g), total
17	Total tax. Add lines 15 and 16
18	Gift and generation-skipping transfer taxes prepaid with extension of time to file
19	If line 18 is less than line 17, enter balance due. See instructions
20	If line 18 is greater than line 17, enter amount to be refunded	. . . . . . . . . . . . . . .

	Under penalties of perjury, I declare that I have examined this return, including any accompanying schedules and						May the IRS discuss this return
	statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer						May the IRS discuss this return
Sign							with the preparer shown below?
Sign	(other than donor) is based on all information of which preparer has any knowledge.						with the preparer shown below?
							See instructions.
Here							See instructions.			Yes	No
										Yes	No



	Signature of donor		Date

Paid	Preparer’s name	Preparer’s signature		Date		Check		if	PTIN
Paid

Preparer						self-employed

	Firm’s name					Firm’s EIN
Use Only	Firm’s name					Firm’s EIN
Use Only	Firm’s address					Phone no.
	Firm’s address					Phone no.
For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see the instructions for this form.					Cat. No. 16783M				Form 709 (2024)

Form 709 (2024)			Page 2
Part III	Spouse’s Consent on Gifts to Third Parties
1 Gifts by spouses to third parties. Do you consent to have the gifts (including generation-skipping transfers) made by you and		Yes	No

by your spouse to third parties during the calendar year considered as made one-half by each of you? See instructions. (If the
answer is “Yes,” the following information must be furnished. If the answer is “No,” skip lines 2–7.)

2Name of consenting spouse

3SSN of consenting spouse

7Consent of Spouse. Have you obtained required spousal consent for gifts made to third parties to be considered as made one-half by each spouse? If “Yes,” you must attach a Notice of Consent. See instructions . . . . . . . . . . .

Form 709 (2024)

Page 3

SCHEDULE A Computation of Taxable Gifts (Including transfers in trust) (see instructions)

Does the value of any item listed on Schedule A reflect any valuation discount? If “Yes,” attach explanation

Yes

BIf you elect under section 529(c)(2)(B) to treat any transfers made this year to a qualified tuition program as made ratably over a 5-year period, check here . See instructions. Attach a statement. Part 1—Gifts Subject Only to Gift Tax. Gifts less political organization, medical, and educational exclusions.

(a)

Item

number

(b)

Donee’s name and address

(c)

Relationship

to donor

(if any)

(d)

Description of gift

(e)

Donor’s

adjusted basis

of gift

(f)	(g)
Date of gift	Value at

date of gift

(h)	(i)
For split	Net transfer
gifts, enter	(subtract col.
1/2 of	(h) from col.
column (g)	(g))

Check boxes where applicable

	(j)	(k)	(l)	(m)
Reserved		Charitable	Deductible	2652(a)(3)
for future		gift	gift to	election
use			spouse

Gifts made by spouse—complete only if you are splitting gifts with your spouse and spouse also made gifts.

Total of Part 1. Add amounts from Part 1, column (i) . . . . . . . . . . . . . . . . . . . . . . . . . . .

(If more space is needed, attach additional statements.)

Form 709 (2024)

Page 4

SCHEDULE A Computation of Taxable Gifts (Including transfers in trust) (see instructions) (continued)

Part 2—Direct Skips. Gifts that are direct skips and are subject to both gift tax and generation-skipping transfer tax. You must list the gifts in chronological order.

(a)

Item

number

(b)

Donee’s name and address

(c)

Relationship

to donor (if

any)

(d)

Description of gift

(e)	(f)	(g)	(h)
Donor’s adjusted	Date of gift	Value at date of	For split gifts,
basis of gift		gift	enter 1/2 of
			column (g)

	(i)	Check boxes
	Net transfer	where applicable
	(subtract col. (h)
	(subtract col. (h)	(j)
	from col. (g))	(j)
		2632(b)
		election out

Gifts made by spouse—complete only if you are splitting gifts with your spouse and spouse also made gifts.

Total of Part 2. Add amounts from Part 2, column (i)
(If more space is needed, attach additional statements.)	Form 709 (2024)

Form 709 (2024)

Page 5

SCHEDULE A Computation of Taxable Gifts (Including transfers in trust) (see instructions) (continued)

Part 3—Indirect Skips and Other Transfers in Trust. Gifts to trusts that are indirect skips as defined under section 2632(c) or to trusts that are currently subject to gift tax and may later be subject to generation-skipping transfer tax. You must list these gifts in chronological order.

(a)

Item

number

(b)

Donee’s name and address

(c)

Relationship

to donor (if

any)

(d)

Description of gift

(e)

Donor’s

adjusted basis

of gift

(f)	(g)	(h)	(i)
Date of gift	Value at	For split	Net transfer
	date of gift	gifts, enter	(subtract col.
		1/2 of	(h) from col.
		column (g)	(g))

Check boxes where applicable

(j)

(k)

(l)

(m)

(n)

Reserved

Charitable

Deductible

2652(a)(3)

2632(c)

for future

gift

gift to

election

use

spouse

Gifts made by spouse—complete only if you are splitting gifts with your spouse and spouse also made gifts.

Total of Part 3. Add amounts from Part 3, column (i) . . . . . . . . . . . . . . . . . . . . . . . .

(If more space is needed, attach additional statements.)

Form 709 (2024)

Page 6

SCHEDULE A Computation of Taxable Gifts (Including transfers in trust) (see instructions) (continued)

Part 4—Taxable Gift Reconciliation

1	Total value of gifts of donor. Add totals from column (i) of Parts 1, 2, and 3
2	Total annual exclusions for gifts listed on line 1 (see instructions)

3Total included amount of gifts. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . .

Deductions (see instructions)

4Gifts of interests to spouse for which a marital deduction will be claimed. Enter the total value of items on Parts 1 and 3 of Schedule A for which the box in column (l) is checked . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5	Exclusions attributable to gifts on line 4
6	Marital deduction. Subtract line 5 from line 4

7Charitable deduction. Enter the total value of items on Parts 1 and 3 of Schedule A for which the box in column (k) is checked, less

	exclusions
8	Total deductions. Add lines 6 and 7
9	Subtract line 8 from line 3
10	Generation-skipping transfer taxes payable with this Form 709 (from Schedule D, Part 3, col. (g), total)
11	Taxable gifts. Add lines 9 and 10. Enter here and on page 1, Part II—Tax Computation, line 1

.	.	.	.	.	.	.
.	.	.	.	.	.	.
.	.	.	.	.	.	.

.	.	.	.	.	.	.
.	.	.	.	.	.	.
.	.	.	.	.	.	.
.	.	.	.	.	.	.

Qualified Terminable Interest Property (QTIP) Marital Deduction (See instructions for Schedule A, Part 4, line 4.)

If a trust (or other property) meets the requirements of qualified terminable interest property under section 2523(f), and: a. The trust (or other property) is listed on Schedule A; and

b. The value of the trust (or other property) is entered in whole or in part as a deduction on Schedule A, Part 4, line 4, then the donor shall be deemed to have made an election to have such trust (or other property) treated as qualified terminable interest property under section 2523(f).

If less than the entire value of the trust (or other property) that the donor has included in Parts 1 and 3 of Schedule A is entered as a deduction on line 4, the donor shall be considered to have made an election only as to a fraction of the trust (or other property). The numerator of this fraction is equal to the amount of the trust (or other property) deducted on Schedule A, Part 4, line 6. The denominator is equal to the total value of the trust (or other property) listed in Parts 1 and 3 of Schedule A.

If you make the QTIP election, the terminable interest property involved will be included in your spouse’s gross estate upon your spouse’s death (section 2044). See instructions for line 4 of Schedule A. If your spouse disposes (by gift or otherwise) of all or part of the qualifying life income interest, your spouse will be considered to have made a transfer of the entire property that is subject to the gift tax. See Transfer of Certain Life Estates Received From Spouse in the instructions.

12Election Out of QTIP Treatment of Annuities

Check here if you elect under section 2523(f)(6) not to treat as qualified terminable interest property any joint and survivor annuities that are reported on Schedule A and would otherwise be treated as qualified terminable interest property under section 2523(f). See instructions. Enter the item numbers from Schedule A for the annuities for which you are making this election.

Form 709 (2024)

Page 7

SCHEDULE B Gifts From Prior Periods

If you answered “Yes” on line 18a of page 1, Part I, see the instructions for completing Schedule B. If you answered “No,” skip to Part II, Tax Computation on page 1 (or Schedule C or D, if applicable). Complete Schedule A before beginning Schedule B. See instructions for recalculation of the column (c) amounts. Attach calculations.

(a)

Calendar year or calendar quarter (see instructions)

(b)

Internal Revenue office

where prior return was filed

(c)

Amount of applicable credit (unified credit) against gift tax for periods after December 31, 1976

(d)

Amount of specific exemption for prior periods ending before January 1, 1977

(e)

Amount of

taxable gifts

1	Totals for prior periods		1
2	Amount, if any, by which total specific exemption, line 1, column (d), is more than $30,000 . . .	. . . . . . . . . . . . . . . .		2

3Total amount of taxable gifts for prior periods. Add amount on line 1, column (e), and amount, if any, on line 2. Enter here and on page 1, Part II—Tax

Computation, line 2	3
(If more space is needed, attach additional statements.)	Form 709 (2024)

Form 709 (2024)

Page 8

SCHEDULE C Deceased Spousal Unused Exclusion (DSUE) Amount and Restored Exclusion

Provide the following information to determine the DSUE amount and applicable credit received from prior spouses. Complete Schedule A before beginning Schedule C.

(a)	(b)		(c)		(d)	(e)	(f)
Name of deceased spouse	Date of death	Portability election made?			If “Yes,” DSUE	DSUE amount applied by	Date of gift(s) (enter as
(dates of death after December 31, 2010, only)					amount received	donor to lifetime gifts (list	mm/dd/yy for Part 1 and
					from spouse	current	as yyyy for Part 2)
		Yes		No		and prior gifts)
		Yes		No

Part 1—DSUE RECEIVED FROM LAST DECEASED SPOUSE

Part 2—DSUE RECEIVED FROM PREDECEASED SPOUSE(S)

TOTAL (for all DSUE amounts applied from column (e) for Part 1 and Part 2. Enter here and on line 2 below)
1	Donor’s basic exclusion amount (see instructions)	1
2	Total from column (e), Parts 1 and 2	2
3	Restored Exclusion Amount (see instructions)	3
4	Add lines 1, 2, and 3	4
5	Applicable credit on amount on line 4 (see Table for Computing Gift Tax in the instructions). Enter here and on line 7, Part II—Tax Computation	5
(If more space is needed, attach additional statements.)			Form 709 (2024)

Form 709 (2024)

Page 9

SCHEDULE D Computation of Generation-Skipping Transfer Tax

Note: Inter vivos direct skips that are completely excluded by the GST exemption must still be fully reported (including value and exemptions claimed) on Schedule D.

Part 1—Generation-Skipping Transfers. List items from Schedule A first, then items to be reported on Schedule D, including any transfers subject to an Estate Tax Inclusion Period (ETIP).

(a)	(b)	(c)	(d)	(e)
Item number (from	Description	Value (from Schedule A, Part 2,	Nontaxable portion of transfer	Net transfer (subtract
Schedule A, Part 2, col. (a),	(only for ETIP transfers)	col. (i), or close of ETIP		col. (d) from col. (c))
then ETIP transfers, if any)		described in col. (b))

Gifts made by spouse (for gift splitting only)


















(If more space is needed, attach additional statements.)				Form 709 (2024)


Form 709 (2024)			Page 10
SCHEDULE D		Computation of Generation-Skipping Transfer Tax (continued)
Part 2—GST Exemption Reconciliation (Section 2631)
Complete items 1–8 below if any gifts are listed on Schedule A, Part 2 or 3 (direct skips, indirect skips, and other transfers in trust). See instructions.
1	Maximum allowable exemption (see instructions)		1
2	Total exemption used for periods before filing this return		2
3	Exemption available for this return. Subtract line 2 from line 1		3
4	Exemption claimed on this return from Part 3, column (c), total below		4

5Automatic allocation of exemption to transfers reported on Schedule A, Part 3. To opt out of the automatic allocation rules, you must attach an “Election Out”

	statement. See instructions	5
6	Exemption allocated to transfers not shown on line 4 or line 5 above. You must attach a “Notice of Allocation.” See instructions	6
7	Add lines 4, 5, and 6	7
8	Exemption available for future transfers. Subtract line 7 from line 3	8

Part 3—Tax Computation

(a)	(b)	(c)	(d)	(e)	(f)	(g)
Item number	Net transfer	GST exemption allocated	Divide col. (c)	Inclusion ratio	Applicable rate	Generation-skipping
(from Schedule D,	(from Schedule D,		by col. (b)	(subtract col. (d)	(multiply col. (e)	transfer tax
Part 1)	Part 1, col. (e))			from 1.000)	by 40% (0.40))	(multiply col. (b)
						by col. (f))

1

Gifts made by spouse (for gift splitting only)











Total exemption claimed. Enter here and on Part
2, line 4, above. May not exceed Part 2, line 3,	Total generation-skipping transfer tax. Enter here; on page 6, Schedule A, Part 4, line
above	10; and on page 1, Part II—Tax Computation, line 16

(If more space is needed, attach additional statements.)		Form 709 (2024)

➤ PDF File

Fact Name	Description
Purpose	The IRS Form 709 is used to report gifts and to calculate any gift tax owed.
Filing Requirement	Individuals must file Form 709 if they give gifts exceeding the annual exclusion amount, which is $17,000 per recipient for 2023.
Gift Splitting	Married couples can choose to split gifts, allowing them to combine their annual exclusions for a single recipient.
Lifetime Exemption	Form 709 also tracks the lifetime gift tax exemption, which is $12.92 million for 2023.
State-Specific Forms	Some states have their own gift tax forms, like California, which does not impose a gift tax, while New York has its own requirements under the New York Estate Tax Law.
Filing Deadline	The form is due on April 15 of the year following the gift, similar to income tax returns.
Penalties	Failure to file Form 709 when required can lead to penalties and interest on any unpaid taxes.
Record Keeping	Taxpayers should maintain records of all gifts made, including appraisals and other documentation, to support their filings.

Filling out the IRS Form 709 is an important step for individuals who are gifting assets above a certain value. Once you have completed the form, you will need to submit it to the IRS along with your tax return. This process helps ensure that your financial contributions are properly documented and accounted for.

Gather necessary information, including details about the donor and the recipient.
Obtain the IRS Form 709 from the IRS website or your local IRS office.
Fill out Part 1, which includes information about the donor, such as name, address, and Social Security number.
Complete Part 2, detailing the gifts made during the tax year, including descriptions and values of each gift.
In Part 3, calculate the total amount of gifts and any applicable exclusions.
Review Part 4, which addresses any prior gifts and their implications on the current year's gifts.
Sign and date the form in the designated areas.
Make a copy of the completed form for your records.
Submit the form to the IRS by the due date, typically April 15 of the following year.

What is the IRS 709 form?

The IRS 709 form, also known as the United States Gift (and Generation-Skipping Transfer) Tax Return, is used to report gifts made during the tax year. It is essential for individuals who give gifts exceeding the annual exclusion amount, which is $17,000 per recipient for 2023. This form helps the IRS track gifts that may be subject to gift tax, ensuring compliance with federal tax laws.

Who needs to file the IRS 709 form?

If you have made gifts that surpass the annual exclusion limit to any individual, you must file the IRS 709 form. This requirement applies to gifts of cash, property, or other assets. Additionally, if you are a U.S. citizen or resident and have made gifts to non-U.S. citizens, you may also need to file this form. Understanding your filing obligations is crucial to avoid potential penalties.

When is the IRS 709 form due?

The IRS 709 form is typically due on April 15 of the year following the tax year in which the gifts were made. However, if you file for an extension on your personal income tax return, you automatically receive an extension for the 709 form as well. Keep in mind that any gift tax owed must still be paid by the original due date to avoid interest and penalties.

What information do I need to provide on the IRS 709 form?

When completing the IRS 709 form, you will need to provide detailed information about the gifts you made, including the recipient's name, the date of the gift, and the value of the gift at the time it was given. Additionally, you may need to report any prior gifts that affect your lifetime gift tax exemption. Accurate reporting is vital, as errors can lead to complications with the IRS.

What happens if I don’t file the IRS 709 form when required?

Failing to file the IRS 709 form when required can result in significant consequences. The IRS may impose penalties, including fines and interest on any unpaid gift tax. Furthermore, not filing can complicate your tax situation and lead to disputes with the IRS. It is in your best interest to stay informed about your filing requirements to avoid these issues.

Failing to report all gifts. Some individuals overlook gifts made to multiple recipients or gifts that exceed the annual exclusion amount.
Incorrectly calculating the total value of gifts. It's important to accurately assess the fair market value of gifts at the time they were given.
Not including required information about the recipient. Ensure that names, addresses, and relationships to the donor are complete and accurate.
Missing signatures. The form must be signed by the donor. Omitting this step can delay processing.
Using outdated forms. Always check that you are using the most current version of the IRS 709 form.
Failing to file on time. Be aware of deadlines to avoid penalties and interest.
Not keeping copies of the submitted form. Retain a copy for your records to reference in the future.
Ignoring state gift tax requirements. Some states have their own gift tax laws that may apply.
Assuming that all gifts are tax-free. Understand the limits and exclusions to avoid unexpected tax liabilities.

The IRS Form 709 is essential for reporting gifts and generation-skipping transfers. However, it often accompanies other forms and documents that help provide a complete picture of an individual's financial transactions. Understanding these additional documents can ensure compliance and streamline the filing process.

IRS Form 706: This form is used to report the estate tax for individuals who have passed away. It details the value of the estate and any applicable deductions. Form 706 is particularly important for those whose estates exceed the federal estate tax exemption limit.
IRS Form 1040: This is the standard individual income tax return form. While it primarily addresses income, it may also include any gifts made during the tax year that exceed the annual exclusion limit, impacting overall tax liability.
IRS Form 709-A: This simplified version of the IRS Form 709 is used for certain small gifts. It is designed for individuals who make gifts that do not exceed the annual exclusion amount, streamlining the reporting process for less complex situations.
Gift Tax Return Instructions: These instructions provide guidance on how to complete the IRS Form 709 accurately. They clarify the rules regarding gift exclusions, deductions, and the filing process, ensuring that individuals understand their obligations.

Being aware of these additional forms and documents is crucial. They not only support the accurate filing of the IRS Form 709 but also help in navigating the complexities of gift and estate tax regulations. Proper preparation can prevent potential issues and ensure compliance with federal requirements.

The IRS Form 709 is used for reporting gifts and generation-skipping transfers. Here are nine other documents that share similarities with Form 709:

IRS Form 706: This form is used for reporting estate taxes. Like Form 709, it deals with transfers of wealth but focuses on the estate rather than gifts made during a person's lifetime.
IRS Form 1040: This is the standard individual income tax return. While Form 1040 reports income, it may also include information about gifts and donations, linking it to Form 709 in the context of overall tax liability.
IRS Form 990: Nonprofit organizations use this form to report their financial activities. Similar to Form 709, it requires detailed reporting of contributions and transfers, especially for large gifts received.
IRS Form 8283: This form is for reporting noncash charitable contributions. It parallels Form 709 in that both require valuation of gifts, ensuring accurate reporting to the IRS.
IRS Form 709-A: This is a shorter version of Form 709 for certain gift tax situations. It serves a similar purpose but is simplified for specific cases, making it easier for some taxpayers to report gifts.
IRS Form 8453: This form is used to authenticate electronic submissions of tax returns. It can be relevant for those filing Form 709 electronically, ensuring that all required documents are properly submitted.
IRS Form 8862: This form is used to claim the Earned Income Tax Credit after it has been disallowed. While not directly related to gifts, it involves tax reporting and compliance, similar to the requirements of Form 709.
IRS Form 1041: This is the income tax return for estates and trusts. It relates to Form 709 in that both deal with the transfer of wealth, though Form 1041 focuses on income generated by the estate or trust.
IRS Form 8822: This form is used to change your address with the IRS. While it may seem unrelated, keeping accurate records of your address is important for all tax-related documents, including Form 709.

When completing the IRS 709 form, it is essential to adhere to specific guidelines to ensure accuracy and compliance. Below is a list of five important do's and don'ts.

Do provide accurate information regarding the gifts made during the tax year.
Do report all gifts that exceed the annual exclusion limit.
Do keep copies of all supporting documents related to your gifts.
Don't overlook the deadline for filing the form, which is typically April 15 of the year following the gift.
Don't forget to sign and date the form before submission.

Following these guidelines will help ensure that the form is completed correctly and submitted on time.

The IRS Form 709, also known as the United States Gift (and Generation-Skipping Transfer) Tax Return, often leads to confusion. Here are six common misconceptions about this form:

Only wealthy individuals need to file Form 709. Many people believe that only the rich are subject to gift tax. However, anyone who gives gifts exceeding the annual exclusion amount must file this form, regardless of their overall wealth.
Gifts to family members are always tax-free. While many gifts fall under the annual exclusion limit, gifts that exceed this limit require reporting on Form 709. It's important to keep track of the value of gifts given to family members.
Form 709 is only for cash gifts. This form is not limited to cash. It applies to any gift of property, including real estate, stocks, and even valuable personal items. The value of these gifts must be assessed to determine if they exceed the exclusion limit.
You can only file Form 709 if you owe gift tax. Filing Form 709 is necessary even if no tax is owed. The form is used to report gifts and track your lifetime gift exemption, which can affect your estate tax in the future.
Filing Form 709 is optional. Some people think they can skip filing the form if they do not believe they owe any taxes. However, if you exceed the annual exclusion limit, you are required to file, even if you won’t owe any tax.
Form 709 can be filed at any time. This form must be filed by April 15 of the year following the year in which the gifts were made. Missing this deadline could lead to penalties or complications down the line.

Understanding these misconceptions can help individuals navigate their gifting strategies more effectively and ensure compliance with IRS regulations.

Were you married to one another during the entire calendar year? See instructions

. . . . . . . . . . . . .

If line 4 is “No,” check whether

divorced or

widowed/deceased, and give date. See instructions

Will a gift tax return for this year be filed by your spouse? If “Yes,” mail both returns in the same envelope

. . . . . .

The IRS Form 709 is essential for reporting gifts and calculating any potential gift tax. Here are some key takeaways to keep in mind when filling out and using this form:

Understand the Purpose: Form 709 is used to report gifts made during the year that exceed the annual exclusion limit.
Annual Exclusion Limit: For 2023, the annual exclusion amount is $17,000 per recipient. Gifts below this amount do not need to be reported.
Filing Requirement: If you give a gift exceeding the annual exclusion, you must file Form 709, even if no tax is owed.
Gift Splitting: Married couples can combine their annual exclusions, allowing them to gift up to $34,000 to a single recipient without reporting.
Lifetime Exemption: The lifetime gift tax exemption is $12.92 million for 2023. This means you can give away this amount over your lifetime without incurring gift tax.
Valuation of Gifts: Accurately assess the value of the gift. Fair market value is generally used to determine the amount that needs to be reported.
Deadline for Filing: Form 709 must be filed by April 15 of the year following the gift. If you file for an extension on your tax return, it also extends the deadline for Form 709.
Documentation: Keep records of your gifts and any valuations. This can be helpful if the IRS questions the reported amounts.
Consult a Professional: If you are unsure about any aspect of the form or your tax situation, consider seeking advice from a tax professional.

Being informed about these key points can help ensure that you correctly complete and file Form 709, minimizing any potential issues with the IRS.