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Level 3
posted Jun 5, 2024 10:56:14 AM

Computing Gift Tax Amount on Form 709

When computing gift tax amount for 2023 for a gift of 150000, do you enter the number on the table on line 4 (table for computing gift tax) 23,800 or do you multiply the taxable amount 132,00 times the 30 percent.

0 4 12037
1 Best answer
Level 15
Jun 5, 2024 11:09:26 AM

If it's $150,000 gift less $18,000 exclusion then you have a $132,000 taxable gift. 

So you have tax of $23,800 plus 30% of the amount over $100,000 or $32,000 times 30%.

Total = $23,800 plus $9.600 = $33,400

4 Replies
Level 15
Jun 5, 2024 11:06:22 AM

Use the table for computing the tax. In your case it's $23,800 PLUS 30% of the amount over $100,000.

Level 15
Jun 5, 2024 11:07:01 AM

Don't forget to deduct your annual exclusion and I assume you did that.

Level 15
Jun 5, 2024 11:09:26 AM

If it's $150,000 gift less $18,000 exclusion then you have a $132,000 taxable gift. 

So you have tax of $23,800 plus 30% of the amount over $100,000 or $32,000 times 30%.

Total = $23,800 plus $9.600 = $33,400

Level 3
Jun 5, 2024 12:03:42 PM

Thanks for the detailed explanation.  I had not idea on what to do.