171995
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Attend our Ask the Experts event about Tax Law Changes - One Big Beautiful Bill on Aug 6! >> RSVP NOW!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

geochar
New Member

When filing Form 709, do I actually compute a tax amount on line 4 of Part 2-Tax Computation

 
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions

When filing Form 709, do I actually compute a tax amount on line 4 of Part 2-Tax Computation

"When filing Form 709, do I actually compute a tax amount on line 4 of Part 2-Tax Computation"

Yes, but then you enter the applicable credit (typically $4,417,800) on Line 7 (see instructions at link below).

If you are giving substantial gifts, you really should consider getting professional assistance, both with the amount and method of gifting and the filing of any gift tax returns that may be due. 

See https://www.irs.gov/instructions/i709#idm140297521158896

View solution in original post

5 Replies

When filing Form 709, do I actually compute a tax amount on line 4 of Part 2-Tax Computation

"When filing Form 709, do I actually compute a tax amount on line 4 of Part 2-Tax Computation"

Yes, but then you enter the applicable credit (typically $4,417,800) on Line 7 (see instructions at link below).

If you are giving substantial gifts, you really should consider getting professional assistance, both with the amount and method of gifting and the filing of any gift tax returns that may be due. 

See https://www.irs.gov/instructions/i709#idm140297521158896

When filing Form 709, do I actually compute a tax amount on line 4 of Part 2-Tax Computation

For 2020 Part 2-Tax Computation Line 7, why isn't the Applicable credit amount $11,580,000 (vice $4,577,800)?

When filing Form 709, do I actually compute a tax amount on line 4 of Part 2-Tax Computation

The figure on the form is the amount of the credit (for the purposes of tax computation), not the lifetime exclusion.

When filing Form 709, do I actually compute a tax amount on line 4 of Part 2-Tax Computation

This $4,577,800 credit gets reduced by any previous taxable gift amounts (lines 8 and 10) and further reduced by the taxable amount of the gift (line 6 carried down to line 12).  The resulting tax credit balance, if any, (line 15) carries forward for use in future years?

 

I am also confused by line 17 because if you carry line 15 (the remaining future gift credit) down to line 17 it implies that this is the tax due to the IRS.

When filing Form 709, do I actually compute a tax amount on line 4 of Part 2-Tax Computation

Confusion is because you appear to be doing the calculation for line 15 incorrectly.  It's the balance of how much tax you owe (which should be zero for most people), not how much you carry forward.

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question