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Level 3
April 4, 2022
Solved

Form 709 gift tax return

  • April 4, 2022
  • 3 replies
  • 27 views

I know TurboTax doesn't include form 709, but I have to fill it out for a gift given to my son.  This is the first time I've had to fill out this form and I know I won't owe any taxes on the gift, so the exemption amount for this year should be the full lifetime exemption of $11,700,000.  What I can't figure out is where on form 709 to subtract the amount of the gift from the exemption amount.  It was a cash gift so there's no issue of adjusting the basis.  It seems like there ought to be a place in Schedule A part 4 to apply the gift amount against the lifetime exemption, but if there is, I'm not seeing it.  Does it go in form 709  part 2, tax computation, line 7 where it asks for the applicable credit amount?  And if so, is the credit amount the amount of the gift?

Best answer by Anonymous_

You do not enter the lifetime exemption amount. You enter the applicable credit amount on Line 7 (and Line 8 for prior periods).

3 replies

Level 15
April 4, 2022

You do not enter the lifetime exemption amount. You enter the applicable credit amount on Line 7 (and Line 8 for prior periods).

ceregaAuthor
Level 3
April 4, 2022

Thank you.  Then is the applicable credit amount the amount of the tax that was computed, so I'd then subtract that from the balance in line 6 and end up with a balance of $0?

Level 15
April 4, 2022

You should wind up with zero tax due, yes.