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