If you were subject to and paid generation-skipping transfer taxes, you may deduct them.
This is not common since you only have to pay generation-skipping taxes when you receive a very large gift from a relative other than your parent.
If you paid generation-skipping taxes on a gift that's been included as income on your return, you can deduct these taxes.
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If you make a taxable gift (one in excess of the annual exclusion of $14,000), you must file Form 709: U.S. Gift (and Generation-Skipping Transfer) Tax Return. The return is required even if you don’t actually owe any gift tax because of the $5.49 million lifetime exemption.
For more information on this works, please click and read this article: The
Gift Tax Made Simple
