IRS Form 709 is the United States Gift (and Generation-Skipping Transfer) Tax Return. The IRS uses it to report transfers subject to federal gift tax rules and certain GST tax rules, and to allocate lifetime GST exemption to property transferred during life.
Common Reasons a Form 709 May Be Filed
A return may be required when reportable gifts exceed an applicable annual exclusion, when spouses elect to split gifts, when certain future interests are transferred, when GST reporting or exemption allocation is needed, or in other situations described in the current instructions. Exceptions can apply, so the transaction must be evaluated under the rules for the calendar year of the gift.
Form 709 Is a Calendar-Year Return
The IRS instructions state that gift and GST taxes are figured and filed on a calendar-year basis. Reportable gifts for one calendar year are generally combined on that year's Form 709 rather than filing a separate return for each gift.
Gift Splitting Requires Careful Coordination
Married couples may be able to elect to treat certain gifts as made one-half by each spouse. The election has procedural requirements and can affect whether one or both spouses need to file. Current Form 709 instructions should be reviewed before assuming gift splitting applies.
Records to Gather
- Donor and spouse information
- Recipient names and relationships
- Date and description of each reportable gift
- Fair market value and valuation support
- Prior taxable gift history and prior Forms 709
- Gift-splitting information when applicable
- GST exemption allocation information when applicable
- Trust or transfer documents when relevant
Electronic Filing
The current IRS Form 709 instructions include electronic filing. The availability of e-file in a particular commercial product still depends on the software developer completing the applicable IRS requirements for the filing year.
Official IRS references: About Form 709 and current Form 709 instructions.