Form 709 Gift Tax GST Exemption

[Romper]

Ref: Gift Tax Exemption, Form 709 for 2024

On Schedule D, Part 2 - GST Exemption Reconciliation, Line 2.

It asks for Total exemption used for periods before filing this return.

I gifted my grandson $xxx during 2024 and several prior years.

What would be the Total Exemption for periods before filing this return?

1. The sum of the actual gifts for each year?
2. The sum of the actual gifts less the exclusion for each year?
3. The sum of the exclusions for each year?
4. Or??

Thanks in advance

[M-MTax]

The exemption amounts for each period are here:

https://www.irs.gov/instructions/i709#en_US_2024_publink16784xd0e5057

Then you have to figure the actual amount of exemption that you used.

[Romper]

Hi again...

If I understand it from your link, for Sch D, Part 2, Line 2, I list the sum of the annual exclusions for the prior years. Is that the way you see it?

Column (d)

You are allowed to claim the gift tax annual exclusion currently allowable for your reported direct skips using the rules and limits discussed earlier for the gift tax annual exclusion.

There's no mention of Line 2 but I wonder if there is an error. The statement for Line 5 makes no sense. Line 5 is an Automatic allocation...etc. Should Line 5 really be Line 2?

Line 5

Enter the amount of GST exemption you are applying to transfers reported in Part 3 of Schedule A.

[M-MTax · Accepted solution]

Yes, the sum of the annual exemptions you actually used.

[Romper]

Thanks...

Exclusions, exemptions. How about settling on one.

[M-MTax]

Exclusion typically refers to the "annual" one while exemption refers to "lifetime" but used interchangeably all the time.