Gift Tax Form 709 - Reporting Prior Gifting

Forum|Forum|1 year ago
January 1, 2025
2 replies
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Reporting prior gifting on Gift Tax Form 709:

For Schedule B (Gifts from Prior Periods)

I realize the final value comes from the Schedule B Worksheet.

Do I report the actual amount or the amount from Line 3 on Schedule A, Part 4 - Taxable Gift Reconciliation?

Example:

Actual gifting = $100,000

Line 3 on Schedule A, Part 4 =$100,000 - Exclusion of $54,000 = $46,000

Reason for asking is - Page 1, Part 2 Tax Computation, Line 3 states "Total Taxable Gifts" = $46,000.

Thanks in advance

M-MTax

Schedule B is just for gifts from prior periods, not including current year gifts (not sure if that's what you're asking).

I recommend folks trying to prepare 709s themselves use the software at the link below - well worth the $50.

https://www.puritas-springs.com/product-category/federal

RomperAuthor

Thanks but if you read the question, it's which amount is to be reported?

RomperAuthor

I am using the software you are referring to. Good but not specific with this question.

M-MTax

You'd be entering the $46,000 on Line 1 of Part 2.

RomperAuthor

Thank you..

In my opinion, the instructions for Form 709 are poorly written and without details.

Can you point to a source that I can use for documentation? Either in the instructions or elsewhere.

M-MTax

Can you point to a source that I can use for documentation?

Sorry, but I actually can't because virtually none exist re the preparation of a 709. In fact, even law school courses in estate and gift taxation teach Code and Regs but not preparation of a 706 or 709.

I suggest doing a search on Youtube using the terms "709 gift tax" or something similar. I know there are at least a couple of tutorials some people have made.