M-MTax
Level 12

Retirement tax questions

It looks like the guy just pulled the figures right off of the worksheet on the IRS web site (instructions for a 709).

 

https://www.irs.gov/instructions/i709#en_US_2024_publink1000122720

 

Note that the figures are cumulative on the worksheet examples and in the video the figure he made up (based on the IRS worksheet) was $10,000,000 of taxable gifts for the 2019 period (which was the current period on the worksheet).

 

If you entered the full amount of the value of gifts for prior periods without deducting the annual exclusions, then that was a mistake. You should have entered the taxable gifts (i.e., total gifts less exclusion). Of course, in the example, it was assumed that the taxable gift was $10,000,000.