Thank you so much!
I have a follow up question: The amount I am gifting is much less than the life time exemption of 11 Million which I don't think I will earn in this life, so I won't owe gift tax. So just curious about the consequences of not submitting 709. For e.g. If my son uses some part of the remaining amount later for downpayment of house, will he be asked where he got it from and would IRS penalize us for not submitting 709? I am just wondering as I don't owe gift tax and am supporting a dependent son, not that I want to break rules. 709 seems a bit complicated but I am trying my best to follow it and fill it if it is really necessary and has consequences. Thanks again for clarifying my lingering questions.
