Son and Granddaughter Had Rent Free Use Home. Now Selling.

[JohnASmith]

Hopefully this topic is still active.  Apparently the form 709 must be filed separately from the 1040 and by mail, no efile allowed.  I just downloaded the IRS form 709-A which is a Short Form for gifts.  The last Revision was Oct 2002, but you fill in the tax year.  At first glance it seemed to apply to gifts from parents to children.  I can find no online information on the form so I'm now thinking it is no longer usable.  Am I right?  

[Carl]

If the gift given to any one individual in 2022 exceeds a value of $16,000 then you may be required to file the form 709. See the instructions to determine if it's required, or if you are exempt from doing so.

For tax year 2022 the form 709 you may need is at https://www.irs.gov/pub/irs-pdf/f709.pdf

The instructions for tax year 2022 are at https://www.irs.gov/pub/irs-pdf/i709.pdf

[Anonymous_ · Accepted solution]

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@JohnASmith wrote:

At first glance it seemed to apply to gifts from parents to children. 

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You almost certainly do not want to use that form. It had limited application anyway.

Form 709-A is an annual short form gift tax return that certain married couples may use instead of Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, to report nontaxable gifts that they consent to split.

[JohnASmith]

Based on what I have learned here the amount that will be considered gift is approximately $150,000.  That amount was jointly given by my wife and myself to our son and daughter-in-law jointly.  Therefore, if I see it right, $64,000 of that should be exempt.  The balance will be applied to our lifetime exemption.   I'm now wondering if my wife and I need to file separate 709's showing our gift shares separately, or can we jointly use the same 709?  Thank you so much for all the great assistance. 

[Anonymous_]

Note that the annual exclusion amount is $17,000 per donor per person for the 2023 tax year (in your case that would be $68,000 if given this year).

You will most likely need to file separate returns.