Since both of your parents are still living, the instructions state the following in regards to line 7.
- The applicable credit (formerly unified credit) amount is the tentative tax on the applicable exclusion amount.
- For gifts made in 2023, the applicable exclusion amount equals: • The basic exclusion amount of $12,920,000,
- PLUS • Any DSUE amount,
- PLUS • Any Restored Exclusion Amount.
My understanding is that you would enter $12,920,000 in this box. There is no DSUE because there is no deceased spouse and no restored exclusion amount.
If there was a deceased spouse and if the remaining spouse could not use a DSUE, then $5,113,000 would be entered. This does not apply in this case because both of your parents are living.
@Shannon03
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