Slightly different gift tax question:
In 2024, let's say unmarried donor A makes the following gifts:
- $30,000 to donee B
- $3,000 to donee C
Questions:
- I assume 709 will need to be filed as one of the gifts is over the annual exclusion amount of $18,000. Correct?
- What goes on lines 1, 2, and 3 on Part 4 of Schedule A? ($33,000, $36,000 and $0, respectively)?
- If the previous numbers are correct, then donor A ends up NOT using any of their applicable tax credit amount of $5,389,800?
If all of this is true, seems a bit odd that a donor can essentially 'offset' a large gift to one donee by 'spreading' the annual exclusion amounts across several donees with small gifts (as low as $1 even)? Am I missing something? For 709 instructions do not seem to clarify this point. Just trying to understand the gift tax stuff better.
