USA Federal Tax Form 709 Technical Question

[Ryan1]

I have a question about Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return specifically regarding Schedule B: Gifts From Prior Periods of this form.

The scenario is simple.

Taxpayer filed Form 709 for tax year 2016. This was the first and only form 709 filed by taxpayer. It included gifts given in 2016 only. No 709 filing was required in prior years.

Now taxpayer will have to file a 709 for 2017 since gifts to a single individual exceeded the $14k limit in 2017.

Everything seems pretty straightforward except what to put in Schedule B columns C, D and E. Since there were no gifts prior to 2016, I assume all three of the numbers for these columns will come from the 709 filed for 2016. But numbers from which lines from the 2016 709 should be put in which columns on the 2017 709 Schedule B? I am not clear on which figures are being asked for on this schedule.

I am guessing some of these columns are looking for cumulative amounts from all prior filings? If so in this case the cumulative amount would be the number shown on the 2016 return. But what numbers go where? The nomenclature on Schedule B is not clear to me.

In case it matters I'll also add that there was no gift splitting. The 2016 gift was not from taxpayer and spouse, it was only from taxpayer.

Thanks for any help!

 

[Drmdcpa]

I do not have the specific forms in front of me, but, since 2016 was the only prior gift tax filing, there should be only one number to put on 2017 706 for prior gifts.

The end result of the return, assuming the grantor is using some life time exclusion, is to increase the usage of the same.

If the grantor used their lifetime exclusion, the tax needs to be paid at whatever graduated rate the gift falls within.

 

[Ryan1]

Thank you for your reply. Yes I understand the concept of the "unified" gift and estate tax and lifetime exclusion. What I need to know is specifically what figures should be entered in the columns I mentioned on Schedule B of the Form 709.

The rest of the form seems pretty simple.