Solved: Gift Tax 2022 Form 709 Line 7

carriskoul · Mar 19, 2023 2:57:31 PM

Hi - I believe I have a relatively straight forward situation here for first time gifting and filing Form 709.-No direct skips or indirect skips so, no Schedule A Parts 2 & 3 as well as schedule D involved.-No prior periods of gifting so, no Schedule B involved.-No DSUE being claimed so, no Schedule C involved. Basic computation for taxable gift applies (i.e. cash was gifted from widowed mother to daughter of $250K.). So, I followed the steps per Pub 709.<UL><LI>Schedule A, Part 1 Column H = $250K & Part 4 ($250K - $16K) = $234K Line 11 applied to Line 1 Part 2 (page1)</LI><LI>Tax computed on $234K Line 3 Part 2 per table in Pub. 709 = $38,800 for Line 4 then Line 6 Part 2 (pg. 1)</LI></UL>Here is the question, do I enter on line 7 Part 2 for applicable credit amount as follows:<UL><LI>$12,060,000 basic exclusion - $234,000 gift = $11,826,000?</LI></UL>If not, based on the numbers above (because there are no other inputs) would appreciate some guidance on what to enter on line 7 Part 2 page 1. Thank you.