how to fill out schedule A for form 709 gifting

[M-MTax]

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@nofan wrote:

....I don’t feel so easy rolling the dice with not reporting it......

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@nofan 

In no way was I suggesting, nor would I every suggest, that you NOT report it nor fail to properly and completely prepare the 709 prior to filing. I'm sorry if you interpreted anything in post to the contrary.

Since the IRS retains these things seemingly forever, it's a good idea and prudent to seek advice and guidance from a local professional who is familiar with estates and trusts including the entire gift tax schema.

[KM-8]

Hello again M-MTax,

I thought I was set and had the form figured out, but I am now confused by one specific part.

As I read through the instructions for Form 709....

Under Part II—Tax Computation (Page 1 of Form 709)
and Pertaining to line 7
The instructions say...
The applicable credit (formerly unified credit) amount is the tentative tax on the applicable exclusion amount. For gifts made in 2024, the applicable exclusion amount equals:
• The basic exclusion amount of $13,610,000, PLUS
• Any DSUE amount, PLUS
• Any Restored Exclusion Amount.

It then says....

Determine the tentative tax on the applicable exclusion amount using the rates in the Table for Computing Gift Tax, and enter the result on line 7. 

My question/confusion is ... Do I put the basic exclusion amount of $13,610,000 on Line 7

OR

do I put (from the Table for Computing Gift Tax) the amount based on taking Column A ($1,000,000) and then add together the tax (on that Column A amount) of $345,800 (from Column C) PLUS the 40% (from Column D) on the additional 12,610,000 ...which would be $5,044,000???

I originally thought I should put the $13,610,000 amount, but now I'm wondering why they said to use the Table for Computing Gift Tax??

Any thoughts on this??

[M-MTax]

@KM-8 

It is indeed confusing, but you do not enter the $13.6 million figure on that line (which is the lifetime exclusion amount - currently).

Rather, you enter the credit as per the table.

[KM-8]

Thank you for that clarification!

Then as long as I'm understanding the table correctly, I should be good to go!

Have a great night!