Instructions for IRS Form 709 - United States Gift (And Generation-Skipping Transfer) Tax Return 2017

January 1, 2017 "Instructions For Form 709 - United States Gift (and Generation-skipping Transfer) Tax Return" contain the latest filing requirements for the IRS-issued Form 709. Download your copy of the instructions by clicking the link below.

IRS Form 709 is a tax form issued by the United States Internal Revenue Service.

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2017
Department of the Treasury
Internal Revenue Service
Instructions for Form 709
United States Gift (and Generation-Skipping Transfer) Tax Return
For gifts made during calendar year 2017
estate must have elected on a timely and
taxes and to figure the tax due, if any, on
Section references are to the Internal Revenue
Code unless otherwise noted.
complete Form 706 to allow the donor to
those transfers.
use the predeceased spouse's unused
Allocation of the lifetime GST
Future Developments
exclusion amount.
exemption to property transferred during
the transferor's lifetime. (For more details,
Same-sex marriage. For federal tax
For the latest information about
see Schedule D, Part 2—GST Exemption
purposes, marriages of couples of the
developments related to Form 709 and its
Reconciliation, later, and Regulations
same sex are treated the same as
instructions, such as legislation enacted
section 26.2632-1.)
marriages of couples of the opposite sex.
after they were published, go to
IRS.gov/
The term “spouse” includes an individual
All gift and GST taxes must be
Form709.
married to a person of the same sex.
computed and filed on a calendar
!
However, individuals who have entered
year basis. List all reportable gifts
For Gifts Made
Use Revision
CAUTION
into a registered domestic partnership,
made during the calendar year on one
of
civil union, or other similar relationship that
Form 709. This means you must file a
Form 709
isn't considered a marriage under state
separate return for each calendar year a
After
and Before
Dated
law aren't considered married for federal
reportable gift is given (for example, a gift
– – – – –
January 1,
November
tax purposes.
given in 2017 must be reported on a 2017
1982
1981
Form 709). Do not file more than one Form
Restored Exclusion Amount. If a
709 for any one calendar year.
December 31,
January 1,
January 1987
donor made a taxable gift to the donor’s
1981
1987
same-sex spouse and that transfer
How To Complete Form 709
December 31,
January 1,
December
resulted in a reduction of the donor’s
1986
1989
1988
1. Determine whether you are
available applicable exclusion amount,
required to file Form 709.
there is a new procedure allowing the
December 31,
January 1,
December
donor to restore the exclusion that was
1988
1990
1989
2. Determine what gifts you must
utilized in the transfer. For more details,
report.
December 31,
October 9,
October 1990
see Schedule C, Restored Exclusion
1989
1990
3. Decide whether you and your
Amount, later.
spouse, if any, will elect to split gifts for the
October 8, 1990
January 1,
November
If a donor made a taxable gift to a skip
year.
1992
1991
person whose generation assignment is
4. Complete lines 1 through 19 of Part
December 31,
January 1,
December
changed as a result of Notice 2017-15,
1—General Information.
1992
1998
1996
any allocation of GST exemption to that
5. List each gift on Part 1, 2, or 3 of
gift is deemed void. For more details, see
December 31,
– – – – –
*
Schedule A, as appropriate.
1997
the instructions for Gifts Subject to Both
Gift and GST Taxes, later.
6. Complete Schedules B, C, and D,
* Use the corresponding annual form.
as applicable.
For more information about the
Restored Exclusion Amount and GST
7. If the gift was listed on Part 2 or 3 of
transfers, see
Notice 2017-15, 2017-06
Schedule A, complete the necessary
I.R.B.
783.
portions of Schedule D.
What's New
8. Complete Schedule A, Part 4.
Photographs of Missing
The annual gift exclusion for 2017
9. Complete Part 2—Tax
remains at $14,000. See Annual
Children
Computation.
Exclusion, later.
The IRS is a proud partner with the
10. Sign and date the return.
For gifts made to spouses who are not
National Center for Missing and Exploited
U.S. citizens, the annual exclusion has
Make sure to complete page 1
Children. Photographs of missing children
increased to $149,000. See Nonresidents
and the applicable schedules in
!
selected by the Center may appear in
not Citizens of the United States, later.
their entirety. Returns filed without
instructions on pages that would otherwise
The top rate for gifts and generation-
CAUTION
entries in each field will not be processed.
be blank. You can help bring these
skipping transfers remains at 40%. See
children home by looking at the
Table for Computing Gift Tax.
Remember, if you are splitting
photographs and calling 1-800-THE-LOST
The basic credit amount for 2017 is
gifts, your spouse must sign
(1-800-843-5678) if you recognize a child.
TIP
$2,141,800. See Table of Basic Exclusion
line 18, in Part 1—General
and Credit Amounts.
General Instructions
Information.
The applicable exclusion amount
consists of the basic exclusion amount
Who Must File
Purpose of Form
($5,490,000 in 2017) and, in the case of a
surviving spouse, any unused exclusion
In general. If you are a citizen or resident
Use Form 709 to report the following.
amount of the last deceased spouse (who
of the United States, you must file a gift tax
Transfers subject to the federal gift and
died after December 31, 2010). The
certain generation-skipping transfer (GST)
executor of the predeceased spouse's
Nov 02, 2017
Cat. No. 16784X
2017
Department of the Treasury
Internal Revenue Service
Instructions for Form 709
United States Gift (and Generation-Skipping Transfer) Tax Return
For gifts made during calendar year 2017
estate must have elected on a timely and
taxes and to figure the tax due, if any, on
Section references are to the Internal Revenue
Code unless otherwise noted.
complete Form 706 to allow the donor to
those transfers.
use the predeceased spouse's unused
Allocation of the lifetime GST
Future Developments
exclusion amount.
exemption to property transferred during
the transferor's lifetime. (For more details,
Same-sex marriage. For federal tax
For the latest information about
see Schedule D, Part 2—GST Exemption
purposes, marriages of couples of the
developments related to Form 709 and its
Reconciliation, later, and Regulations
same sex are treated the same as
instructions, such as legislation enacted
section 26.2632-1.)
marriages of couples of the opposite sex.
after they were published, go to
IRS.gov/
The term “spouse” includes an individual
All gift and GST taxes must be
Form709.
married to a person of the same sex.
computed and filed on a calendar
!
However, individuals who have entered
year basis. List all reportable gifts
For Gifts Made
Use Revision
CAUTION
into a registered domestic partnership,
made during the calendar year on one
of
civil union, or other similar relationship that
Form 709. This means you must file a
Form 709
isn't considered a marriage under state
separate return for each calendar year a
After
and Before
Dated
law aren't considered married for federal
reportable gift is given (for example, a gift
– – – – –
January 1,
November
tax purposes.
given in 2017 must be reported on a 2017
1982
1981
Form 709). Do not file more than one Form
Restored Exclusion Amount. If a
709 for any one calendar year.
December 31,
January 1,
January 1987
donor made a taxable gift to the donor’s
1981
1987
same-sex spouse and that transfer
How To Complete Form 709
December 31,
January 1,
December
resulted in a reduction of the donor’s
1986
1989
1988
1. Determine whether you are
available applicable exclusion amount,
required to file Form 709.
there is a new procedure allowing the
December 31,
January 1,
December
donor to restore the exclusion that was
1988
1990
1989
2. Determine what gifts you must
utilized in the transfer. For more details,
report.
December 31,
October 9,
October 1990
see Schedule C, Restored Exclusion
1989
1990
3. Decide whether you and your
Amount, later.
spouse, if any, will elect to split gifts for the
October 8, 1990
January 1,
November
If a donor made a taxable gift to a skip
year.
1992
1991
person whose generation assignment is
4. Complete lines 1 through 19 of Part
December 31,
January 1,
December
changed as a result of Notice 2017-15,
1—General Information.
1992
1998
1996
any allocation of GST exemption to that
5. List each gift on Part 1, 2, or 3 of
gift is deemed void. For more details, see
December 31,
– – – – –
*
Schedule A, as appropriate.
1997
the instructions for Gifts Subject to Both
Gift and GST Taxes, later.
6. Complete Schedules B, C, and D,
* Use the corresponding annual form.
as applicable.
For more information about the
Restored Exclusion Amount and GST
7. If the gift was listed on Part 2 or 3 of
transfers, see
Notice 2017-15, 2017-06
Schedule A, complete the necessary
I.R.B.
783.
portions of Schedule D.
What's New
8. Complete Schedule A, Part 4.
Photographs of Missing
The annual gift exclusion for 2017
9. Complete Part 2—Tax
remains at $14,000. See Annual
Children
Computation.
Exclusion, later.
The IRS is a proud partner with the
10. Sign and date the return.
For gifts made to spouses who are not
National Center for Missing and Exploited
U.S. citizens, the annual exclusion has
Make sure to complete page 1
Children. Photographs of missing children
increased to $149,000. See Nonresidents
and the applicable schedules in
!
selected by the Center may appear in
not Citizens of the United States, later.
their entirety. Returns filed without
instructions on pages that would otherwise
The top rate for gifts and generation-
CAUTION
entries in each field will not be processed.
be blank. You can help bring these
skipping transfers remains at 40%. See
children home by looking at the
Table for Computing Gift Tax.
Remember, if you are splitting
photographs and calling 1-800-THE-LOST
The basic credit amount for 2017 is
gifts, your spouse must sign
(1-800-843-5678) if you recognize a child.
TIP
$2,141,800. See Table of Basic Exclusion
line 18, in Part 1—General
and Credit Amounts.
General Instructions
Information.
The applicable exclusion amount
consists of the basic exclusion amount
Who Must File
Purpose of Form
($5,490,000 in 2017) and, in the case of a
surviving spouse, any unused exclusion
In general. If you are a citizen or resident
Use Form 709 to report the following.
amount of the last deceased spouse (who
of the United States, you must file a gift tax
Transfers subject to the federal gift and
died after December 31, 2010). The
certain generation-skipping transfer (GST)
executor of the predeceased spouse's
Nov 02, 2017
Cat. No. 16784X
Transfers Not Subject to the
return (whether or not any tax is ultimately
gifts to charities, you must include all of
due) in the following situations.
your gifts to charities on the return.
Gift Tax
If you gave gifts to someone in 2017
Transfers Subject to the Gift
Four types of transfers are not subject to
totaling more than $14,000 (other than to
Tax
the gift tax. These are:
your spouse), you probably must file Form
Transfers to political organizations,
709. But see Transfers Not Subject to Gift
Generally, the federal gift tax applies to
Transfers to certain exempt
Tax and Gifts to Your Spouse, later, for
any transfer by gift of real or personal
organizations,
more information on specific gifts that are
property, whether tangible or intangible,
Payments that qualify for the
not taxable.
that you made directly or indirectly, in
educational exclusion, and
Certain gifts, called future interests, are
trust, or by any other means.
Payments that qualify for the medical
not subject to the $14,000 annual
The gift tax applies not only to the free
exclusion.
exclusion and you must file Form 709
transfer of any kind of property, but also to
These transfers are not “gifts” as that term
even if the gift was under $14,000. See
sales or exchanges, not made in the
is used on Form 709 and its instructions.
Annual Exclusion, later.
You need not file a Form 709 to report
ordinary course of business, where value
Spouses may not file a joint gift tax
of the money (or property) received is less
these transfers and should not list them on
return. Each individual is responsible for
than the value of what is sold or
Schedule A of Form 709 if you do file
his or her own Form 709.
exchanged. The gift tax is in addition to
Form 709.
You must file a gift tax return to split
any other tax, such as federal income tax,
gifts with your spouse (regardless of their
Political organizations. The gift tax
paid or due on the transfer.
amount) as described in Part 1—General
does not apply to a transfer to a political
Information.
organization (defined in section 527(e)(1))
The exercise or release of a general
If a gift is of community property, it is
for the use of the organization.
power of appointment may be a gift by the
considered made one-half by each
individual possessing the power. General
Certain exempt organizations. The gift
spouse. For example, a gift of $100,000 of
powers of appointment are those in which
tax does not apply to a transfer to any civic
community property is considered a gift of
the holders of the power can appoint the
league or other organization described in
$50,000 made by each spouse, and each
property under the power to themselves,
section 501(c)(4), any labor, agricultural,
spouse must file a gift tax return.
their creditors, their estates, or the
or horticultural organization described in
Likewise, each spouse must file a gift
creditors of their estates. To qualify as a
section 501(c)(5), or any business league
tax return if they have made a gift of
power of appointment, it must be created
or other organization described in section
property held by them as joint tenants or
by someone other than the holder of the
501(c)(6) for the use of such organization,
tenants by the entirety.
power.
provided that such organization is exempt
Only individuals are required to file gift
from tax under section 501(a).
The gift tax also may apply to forgiving
tax returns. If a trust, estate, partnership,
a debt, to making an interest-free or below
or corporation makes a gift, the individual
Educational exclusion. The gift tax
market interest rate loan, to transferring
beneficiaries, partners, or stockholders
does not apply to an amount you paid on
the benefits of an insurance policy, to
are considered donors and may be liable
behalf of an individual to a qualifying
certain property settlements in divorce
for the gift and GST taxes.
domestic or foreign educational
cases, and to giving up of some amount of
The donor is responsible for paying the
organization as tuition for the education or
annuity in exchange for the creation of a
gift tax. However, if the donor does not
training of the individual. A qualifying
survivor annuity.
pay the tax, the person receiving the gift
educational organization is one that
may have to pay the tax.
normally maintains a regular faculty and
Bonds that are exempt from federal
If a donor dies before filing a return, the
curriculum and normally has a regularly
income taxes are not exempt from federal
donor's executor must file the return.
enrolled body of pupils or students in
gift taxes.
attendance at the place where its
Who does not need to file. If you meet
Sections 2701 and 2702 provide rules
educational activities are regularly carried
all of the following requirements, you are
for determining whether certain transfers
on. See section 170(b)(1)(A)(ii) and its
not required to file Form 709.
to a family member of interests in
regulations.
You made no gifts during the year to
corporations, partnerships, and trusts are
your spouse.
The payment must be made directly to
gifts. The rules of section 2704 determine
You did not give more than $14,000 to
the qualifying educational organization
whether the lapse of any voting or
any one donee.
and it must be for tuition. No educational
liquidation right is a gift.
All the gifts you made were of present
exclusion is allowed for amounts paid for
interests.
Gifts to your spouse. You must file a gift
books, supplies, room and board, or other
tax return if you made any gift to your
similar expenses that are not direct tuition
Gifts to charities. If the only gifts you
spouse of a terminable interest that does
costs. To the extent that the payment to
made during the year are deductible as
not meet the exception described in Life
the educational organization was for
gifts to charities, you do not need to file a
estate with power of appointment, or if
something other than tuition, it is a gift to
return as long as you transferred your
your spouse is not a U.S. citizen and the
the individual for whose benefit it was
entire interest in the property to qualifying
total gifts you made to your spouse during
made, and may be offset by the annual
charities. If you transferred only a partial
the year exceed $149,000.
exclusion if it is otherwise available.
interest, or transferred part of your interest
You also must file a gift tax return to
Contributions to a qualified tuition
to someone other than a charity, you must
make the Qualified Terminable Interest
program (QTP) on behalf of a designated
still file a return and report all of your gifts
Property (QTIP) election described under
beneficiary do not qualify for the
to charities.
Line 12. Election Out of QTIP Treatment of
educational exclusion. See Line
Annuities.
B—Qualified Tuition Programs (529 Plans
Note. See Pub. 526, Charitable
or Programs) in the instructions for
Contributions for more information on
Except as described earlier, you do not
Schedule A, later.
identifying a qualified charity.
have to file a gift tax return to report gifts to
your spouse regardless of the amount of
If you are required to file a return to
Medical exclusion. The gift tax does not
these gifts and regardless of whether the
report noncharitable gifts and you made
apply to an amount you paid on behalf of
gifts are present or future interests.
-2-
an individual to a person or institution that
4. As a result of the refusal, the
payable either to the minor's estate or to
provided medical care for the individual.
interest must pass without any direction
whomever the minor may appoint under a
The payment must be to the care provider.
from the disclaimant to either:
general power of appointment.
The medical care must meet the
a. The spouse of the decedent, or
The gift of a present interest to more
requirements of section 213(d) (definition
b. A person other than the
than one donee as joint tenants qualifies
of medical care for income tax deduction
disclaimant.
for the annual exclusion for each donee.
purposes). Medical care includes
5. The refusal must be irrevocable
expenses incurred for the diagnosis, cure,
Nonresidents not Citizens of
and unqualified.
mitigation, treatment, or prevention of
the United States
disease, or for the purpose of affecting
The 9-month period for making the
Nonresidents not citizens of the United
any structure or function of the body, or for
disclaimer generally is determined
States are subject to gift and GST taxes
transportation primarily for and essential to
separately for each taxable transfer. For
for gifts of tangible property situated in the
medical care. Medical care also includes
gifts, the period begins on the date the
United States. A person is considered a
amounts paid for medical insurance on
transfer is a completed transfer for gift tax
nonresident not a citizen of the United
behalf of any individual.
purposes.
States if he or she, at the time the gift is
The medical exclusion does not apply
made, (1) was not a citizen of the United
Annual Exclusion
to amounts paid for medical care that are
States and did not reside there, or (2) was
reimbursed by the donee's insurance. If
The first $14,000 of gifts of present
domiciled in a United States possession
payment for a medical expense is
interest to each donee during the calendar
and acquired citizenship solely by reason
reimbursed by the donee's insurance
year is subtracted from total gifts in
of birth or residence in the possession.
company, your payment for that expense,
figuring the amount of taxable gifts. For a
Under certain circumstances, they also
to the extent of the reimbursed amount, is
gift in trust, each beneficiary of the trust is
are subject to gift and GST taxes for gifts
not eligible for the medical exclusion and
treated as a separate donee for purposes
of intangible property. See section
you are considered to have made a gift to
of the annual exclusion.
2501(a).
the donee of the reimbursed amount.
All of the gifts made during the
If you are a nonresident not a citizen of
To the extent that the payment was for
calendar year to a donee are fully
the United States who made a gift subject
something other than medical care, it is a
excluded under the annual exclusion if
to gift tax, you must file a gift tax return
gift to the individual on whose behalf the
they are all gifts of present interest and
when any of the following apply.
payment was made and may be offset by
they total $14,000 or less.
You gave any gifts of future interests.
the annual exclusion if it is otherwise
Your gifts of present interests to any
available.
Note. For gifts made to spouses who are
donee other than your spouse total more
not U.S. citizens, the annual exclusion has
The medical and educational
than $14,000.
been increased to $149,000, provided the
exclusions are allowed without regard to
Your outright gifts to your spouse who is
additional (above the $14,000 annual
the relationship between you and the
not a U.S. citizen total more than
exclusion) $135,000 gift would otherwise
donee. For examples illustrating these
$149,000.
qualify for the gift tax marital deduction (as
exclusions, see Regulations section
Transfers Subject to the GST
described in the Schedule A, Part 4, line 4
25.2503-6(c).
instructions, later).
Tax
Qualified disclaimers. A donee's refusal
A gift of a future interest cannot be
to accept a gift is called a disclaimer. If a
You must report on Form 709 the GST tax
excluded under the annual exclusion.
person makes a qualified disclaimer of any
imposed on inter vivos direct skips. An
interest in property, the property will be
inter vivos direct skip is a transfer made
A gift is considered a present interest if
treated as if it had never been transferred
during the donor's lifetime that is:
the donee has all immediate rights to the
to that person. Accordingly, the
Subject to the gift tax,
use, possession, and enjoyment of the
disclaimant is not regarded as making a
Of an interest in property, and
property or income from the property.
gift to the person who receives the
Made to a skip person. (See Gifts
A gift is considered a future interest if
property because of the qualified
Subject to Both Gift and GST Taxes,
the donee's rights to the use, possession,
disclaimer.
later.)
and enjoyment of the property or income
Requirements. To be a qualified
A transfer is subject to the gift tax if it is
from the property will not begin until some
disclaimer, a refusal to accept an interest
required to be reported on Schedule A of
future date. Future interests include
in property must meet the following
Form 709 under the rules contained in the
reversions, remainders, and other similar
conditions.
gift tax portions of these instructions,
interests or estates.
including the split gift rules. Therefore,
1. The refusal must be in writing.
A contribution to a QTP on behalf of a
transfers made to political organizations,
2. The refusal must be received by the
designated beneficiary is considered a gift
transfers made to certain exempt
donor, the legal representative of the
of a present interest.
organizations, transfers that qualify for the
donor, the holder of the legal title to the
medical or educational exclusions,
A gift to a minor is considered a
property disclaimed, or the person in
transfers that are fully excluded under the
present interest if all of the following
possession of the property within 9
annual exclusion, and most transfers
conditions are met.
months after the later of:
made to your spouse are not subject to the
1. Both the property and its income
a. The day the transfer creating the
GST tax.
may be expended by, or for the benefit of,
interest is made, or
the minor before the minor reaches age
Transfers subject to the GST tax are
b. The day the disclaimant reaches
21.
described in further detail in the
age 21.
instructions.
2. All remaining property and its
3. The disclaimant must not have
income must pass to the minor on the
Certain transfers, particularly
accepted the interest or any of its benefits.
minor's 21st birthday.
transfers to a trust, that are not
!
3. If the minor dies before the age of
subject to gift tax and are
CAUTION
21, the property and its income will be
therefore not subject to the GST tax on
-3-
Section 2701 Elections
Form 709 may be subject to the GST tax
method extends the time to pay the gift or
at a later date. This is true even if the
GST taxes. If you want an extension of
The special valuation rules of section 2701
transfer is less than the $14,000 annual
time to pay the gift or GST taxes, you must
contain three elections that you must
exclusion. In this instance, you may want
request that separately. See Regulations
make with Form 709.
to apply a GST exemption amount to the
section 25.6161-1.
1. A transferor may elect to treat a
transfer on this return or on a Notice of
By extending the time to file your in-
qualified payment right he or she holds
Allocation. For more information, see
come tax return. Any extension of time
(and all other rights of the same class) as
Schedule D, Part 2—GST Exemption
granted for filing your calendar year 2017
other than a qualified payment right.
Reconciliation and Schedule A, Part
federal income tax return also will
3—Indirect Skips.
2. A person may elect to treat a
automatically extend the time to file your
distribution right held by that person in a
2017 federal gift tax return. Income tax
Transfers Subject to an Estate
controlled entity as a qualified payment
extensions are made by using Form 4868,
right.
Tax Inclusion Period (ETIP)
Application for Automatic Extension of
3. An interest holder may elect to treat
Time To File U.S. Individual Income Tax
Certain transfers that are direct skips
as a taxable event the payment of a
Return, or Form 2350, Application for
receive special treatment. If the
qualified payment that occurs more than 4
Extension of Time To File U.S. Income
transferred property would have been
years after its due date.
Tax Return. You may only use these forms
includible in the donor's estate if the donor
to extend the time for filing your gift tax
had died immediately after the transfer (for
The elections described in (1) and (2)
return if you also are requesting an
a reason other than the donor having died
must be made on the Form 709 that is filed
extension of time to file your income tax
within 3 years of making the gift), the
by the transferor to report the transfer that
return.
direct skip will be treated as having been
is being valued under section 2701. The
made at the end of the ETIP rather than at
elections are made by attaching a
By filing Form 8892. If you do not
the time of the actual transfer.
statement to Form 709. For information on
request an extension for your income tax
what must be in the statement and for
return, use Form 8892, Application for
For example, if A transferred her house
definitions and other details on the
Automatic Extension of Time To File Form
to her granddaughter, B, but retained the
elections, see section 2701 and
709 and/or Payment of Gift/
right to live in the house until her death (a
Regulations section 25.2701-2(c).
Generation-Skipping Transfer Tax, to
retained life estate), the value of the house
request an automatic 6-month extension
would be includible in A's estate if she
The election described in (3) may be
of time to file your federal gift tax return. In
died while still holding the life estate. In
made by attaching a statement to the
addition to containing an extension
this case, the transfer to B is a completed
Form 709 filed by the recipient of the
request, Form 8892 also serves as a
gift (it is a transfer of a future interest) and
qualified payment for the year the
payment voucher (Form 8892-V) for a
must be reported on Part 1 of Schedule A.
payment is received. If the election is
balance due on federal gift taxes for which
The GST portion of the transfer would not
made on a timely filed return, the taxable
you are extending the time to file. For
be reported until A died or otherwise gave
event is deemed to occur on the date the
more information, see Form 8892.
up her life estate in the house.
qualified payment is received. If it is made
Private Delivery Services
on a late filed return, the taxable event is
Report the gift portion of such a
deemed to occur on the first day of the
transfer on Schedule A, Part 1, at the time
Filers can use certain private delivery
month immediately preceding the month in
of the actual transfer. Report the GST
services (PDS) designated by the IRS to
which the return is filed. For information on
portion on Schedule A, Part 2, but only at
meet the “timely mailing as timely filing”
what must be in the statement and for
the close of the ETIP. Use Form 709 only
rule for tax returns. Go to
IRS.gov/PDS
for
definitions and other details on this
to report those transfers where the ETIP
the current list of designated services.
election, see section 2701 and
closed due to something other than the
Regulations section 25.2701-4(d).
The private delivery service can tell you
donor's death. (If the ETIP closed as the
how to get written proof of the mailing
result of the donor's death, report the
All of the elections may be revoked, but
date.
transfer on Form 706, United States
only with the consent of the IRS.
Estate (and Generation-Skipping Transfer)
For the IRS mailing address to use if
When To File
Tax Return.)
you're using PDS, go to
IRS.gov/
PDSstreetAddresses.
Form 709 is an annual return.
If you are filing this Form 709 solely to
report the GST portion of transfers subject
Private delivery services can't
Generally, you must file Form 709 no
to an ETIP, complete the form as you
deliver items to P.O. boxes. You
earlier than January 1, but not later than
!
normally would with the following
must use the U.S. Postal Service
April 15, of the year after the gift was
CAUTION
exceptions.
to mail any item to an IRS P.O. box
made. However, in instances when April
address.
1. Write “ETIP” at the top of page 1.
15 falls on a Saturday, Sunday, or legal
holiday, Form 709 will be due on the next
2. Complete only lines 1 through 6, 8,
business day. See section 7503.
Where To File
and 9 of Part 1—General Information.
If the donor died during 2017, the
3. Complete Schedule A, Part 2, as
File Form 709 at the following address.
explained in the instructions for that
executor must file the donor's 2017 Form
schedule.
709 not later than the earlier of:
Department of the Treasury
The due date (with extensions) for filing
Internal Revenue Service Center
4. Complete Schedule D. Complete
the donor's estate tax return; or
Cincinnati, OH 45999
column B of Schedule D, Part 1, as
April 17, 2018, or the extended due
explained in the instructions for that
date granted for filing the donor's gift tax
If submitting Form 709 by private
schedule.
return.
delivery service (discussed earlier), mail
5. Complete only lines 10 and 11 of
to:
Extension of Time To File
Schedule A, Part 4.
6. Complete Part 2—Tax
There are two methods of extending the
Computation.
time to file the gift tax return. Neither
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Internal Revenue Service
The Small Business and Work
exclusion is allowed. To the extent that
201 West Rivercenter Boulevard
Opportunity Tax Act of 2007 extended
you transferred the life income interest
Covington, KY 41011
section 6694 income tax return preparer
without receiving any value in return, the
penalties to all tax return preparers,
transfer is a gift, and you may claim an
including gift tax return preparers. Now,
annual exclusion, treating the person to
See the Caution under Lines 12–
gift tax return preparers who prepare any
whom you transferred the interest as the
18. Split Gifts, later, before you
TIP
return or claim for refund with an
donee for purposes of figuring the annual
mail the return.
understatement of tax liability due to willful
exclusion.
or reckless conduct can be penalized
Adequate Disclosure
Specific Instructions
$5,000 or 75% of the fee received (or fee
to be received), whichever is greater, for
To begin the running of the statute
each return. See section 6694, its
of limitations for a gift, the gift
Part 1—General
!
regulations, and Ann. 2009-15, 2009-11
must be adequately disclosed on
Information
CAUTION
I.R.B. 687, available at
IRS.gov/pub/irs-
Form 709 (or an attached statement) filed
irbs/irb09-11.pdf
for more information.
for the year of the gift.
Lines 4 and 6. Address. Enter your
Joint Tenancy
current mailing address.
In general, a gift will be considered
adequately disclosed if the return or
If you buy property with your own funds
Foreign address. If your address is
statement includes the following.
and the title to the property is held by you
outside of the United States or its
A full and complete Form 709.
and a donee as joint tenants with right of
possessions or territories, enter the
A description of the transferred property
survivorship and if either you or the donee
information as follows: city, province or
and any consideration received by the
may give up those rights by severing your
state, and name of country. Follow the
donor.
interest, you have made a gift to the donee
country's practice for entering the postal
The identity of, and relationship
in the amount of half the value of the
code. Do not abbreviate the country
between, the donor and each donee.
property.
name.
If the property is transferred in trust, the
If you create a joint bank account for
trust's employer identification number
Line 5. Legal residence (domicile). In
yourself and a donee (or a similar kind of
(EIN) and a brief description of the terms
general, your legal residence (also known
ownership by which you can get back the
of the trust (or a copy of the trust
as your domicile) is acquired by living in a
entire fund without the donee's consent),
instrument in lieu of the description).
place, for even a brief period of time, with
you have made a gift to the donee when
Either a qualified appraisal or a detailed
no definite present intention of moving
the donee draws on the account for his or
description of the method used to
from that place.
her own benefit. The amount of the gift is
determine the fair market value of the gift.
Enter the state of the United States
the amount that the donee took out
(including the District of Columbia) or a
See Regulations section
without any obligation to repay you.
foreign country in which you legally reside
301.6501(c)-1(e) and (f) for details,
or are domiciled at the time of the gift.
If you buy a U.S. savings bond
including what constitutes a qualified
registered as payable to yourself or a
appraisal, the information required if no
Line 7. Citizenship. Enter your
donee, there is a gift to the donee when he
appraisal is provided, and the information
citizenship.
or she cashes the bond without any
required for transfers under sections 2701
The term citizen of the United States
obligation to account to you.
and 2702.
includes a person who, at the time of
Transfer of Certain Life
making the gift:
Penalties
Was domiciled in a possession of the
Estates Received From
United States,
Late filing and late payment. Section
Spouse
Was a U.S. citizen, and
6651 imposes penalties for both late filing
Became a U.S. citizen for a reason
and late payment, unless there is
If you received a qualified terminable
other than being a citizen of a U.S.
reasonable cause for the delay.
interest (see Line 12. Election Out of QTIP
possession or being born or residing in a
Treatment of Annuities in the instructions
Reasonable cause determinations. If
possession.
for Schedule A, later) from your spouse for
you receive a notice about penalties after
which a marital deduction was elected on
you file Form 709, send an explanation
Note. A taxpayer is considered a resident
your spouse's estate or gift tax return, you
and we will determine if you meet
of the United States if one of two tests are
will be subject to the gift tax (and GST tax,
reasonable cause criteria. Do not attach
passed. See
IRS.gov/substantial-
if applicable) if you dispose of all or part of
an explanation when you file Form 709.
presence-test
for more information.
your life income interest (by gift, sale, or
There also are penalties for willful
Generally, a resident of the United States
otherwise).
failure to file a return on time, willful
is subject to the same tax rules as citizens.
attempt to evade or defeat payment of tax,
Generally, the entire value of the
A nonresident not a citizen of the
and valuation understatements that cause
property transferred will be treated as a
United States includes a person who, at
an underpayment of the tax. A substantial
taxable gift less:
the time of making the gift:
valuation understatement occurs when the
1. The amount you received (if any)
Was domiciled in a possession of the
reported value of property entered on
for the life income interest, and
United States,
Form 709 is 65% or less of the actual
Was a U.S. citizen, and
2. The amount (if any) determined
value of the property. A gross valuation
Became a U.S. citizen only because he
after the application of section 2702,
understatement occurs when the reported
or she was a citizen of a possession or
valuing certain retained interests at zero,
value listed on the Form 709 is 40% or
was born or resided in a possession.
for the life income interest you retained
less of the actual value of the property.
after the transfer.
Return preparer. Penalties also may be
That portion of the property's value that
applied to tax return preparers, including
is attributable to the remainder interest is a
gift tax return preparers.
gift of a future interest for which no annual
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Download Instructions for IRS Form 709 - United States Gift (And Generation-Skipping Transfer) Tax Return 2017

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