topic Requesting confirmation for Form 709 : Schedule B, column C in Get your taxes done using TurboTax

Requesting confirmation for Form 709 : Schedule B, column C

chistapeter — Thu, 01 Apr 2021 15:20:53 GMT

I had gifted to my daughter in 2018 and 2019 and the total sum was <500k. I submitted 709 for both years. So I am trying to fill Schedule B for gifts in prior years and ran into a small question:

So for Schedule B, Column C :

Should I enter 4417800 for 2018 and 4505800 for 2019?
Or should I enter the amount from "Total Taxable Gifts" from Part 1 - Question 19 - Line 3?

Re: Requesting confirmation for Form 709 : Schedule B, column C

M-MTax — Thu, 01 Apr 2021 15:02:37 GMT

Try this calculator.....https://www.taxformcalculator.com/calculator/709.html....and you shouldn't be trying to prepare this form by yourself anyway.....get a tax pro.

Re: Requesting confirmation for Form 709 : Schedule B, column C

chistapeter — Thu, 01 Apr 2021 15:20:19 GMT

Thank you. I have completed filling the rest of the form and am only confused about that 1 number. So, would greatly appreciate any advice on whether to enter option 1 or option 2 from my post. Thanks again!

Re: Requesting confirmation for Form 709 : Schedule B, column C

M-MTax — Thu, 01 Apr 2021 15:32:52 GMT

If the gifts in the prior period were $500k or less then you enter the amount of the applicable credit actually applied in the prior period in column C.

Re: Requesting confirmation for Form 709 : Schedule B, column C

chistapeter — Thu, 01 Apr 2021 15:35:19 GMT

Thank you martinmarks1919.

yes, that's exactly what the instruction says: " enter applicable credit actually applied in the prior period in column C"

My confusion is : where do I get that number from:

1. Should I enter 4417800 for 2018 and 4505800 for 2019?
2. Or should I enter the amount from "Total Taxable Gifts" from Part 1 - Question 19 - Line 3?

Re: Requesting confirmation for Form 709 : Schedule B, column C

M-MTax — Thu, 01 Apr 2021 15:38:44 GMT

It's the amount of you actually used and not one of the figures you mentioned. If you gave $400k then you actually used $400k.....less the exclusion of course.

Re: Requesting confirmation for Form 709 : Schedule B, column C

chistapeter — Thu, 01 Apr 2021 15:59:51 GMT

Thank you so much martinmarks1919

Just to make sure I understand your suggestion: Example: If I gifted 40k in 2018 and 200k in 2019, then should I enter these values for column C in Schedule B?

1. 2018: 25000 (40000-15000 annual exclusion)

2. 2019: 185000

Then I enter 210000 (25000+185000) in part 1 : line 8. Right?

Thanks again!

Re: Requesting confirmation for Form 709 : Schedule B, column C

gr3849 — Wed, 10 Apr 2024 17:24:34 GMT

martinmarks1919: Hi, I did not see an answer to the very last question there. Is that an "Yes" for the question:

"1. 2018: 25000 (40000-15000 annual exclusion)

2. 2019: 185000

Then I enter 210000 (25000+185000) in part 1 : line 8. Right?"

Thank you since I have exactly the same question.

Re: Requesting confirmation for Form 709 : Schedule B, column C

gr3849 — Wed, 10 Apr 2024 18:35:13 GMT

If the "applicable credit actually applied"is calculated this way, then the column C and Column H will be come the same on schedule A. Is this become questionable? Thanks

Re: Requesting confirmation for Form 709 : Schedule B, column C

M-MTax — Wed, 10 Apr 2024 20:49:19 GMT

Not sure I follow. if your previous gifts total $500k or less then you enter the amount of the applicable credit actually applied in the previous period in column C. You should have your previous 709s as a guide. If not you need a tax pro for this......and should always use one for gift tax returns if you're constantly going over the annual exclusion.

Re: Requesting confirmation for Form 709 : Schedule B, column C

gr3849 — Wed, 10 Apr 2024 21:02:07 GMT

I only have gift for one previous year. There is no info in the schedule B for that year. So where I can get the right number (applicable credit actually applied) from the 709 in that year? Thanks

Re: Requesting confirmation for Form 709 : Schedule B, column C

M-MTax — Wed, 10 Apr 2024 22:30:42 GMT

You would have entered your credit on Line 7.

Re: Requesting confirmation for Form 709 : Schedule B, column C

gr3849 — Wed, 10 Apr 2024 23:38:11 GMT

Line 7 is $4,625,800 according to the instructions "If you are not eligible to use a DSUE amount from a predeceased spouse, or Restored Exclusion Amount on taxable gifts made to a same-sex spouse, enter $4,625,800 on line 7."

If I enter $4,625,800 on the Form Sch. B Col. C for each gift, then the sum in Sch. B, Line 1, Col C will easily add to 10s of millions. I am not sure if that will work.

Thanks

Re: Requesting confirmation for Form 709 : Schedule B, column C

M-MTax — Thu, 11 Apr 2024 03:07:39 GMT

Line 7 is your applicable credit amount and you need to figure out how much of that credit you used previously. You should find that on Line 14 if you did the previous 709 correctly.

Re: Requesting confirmation for Form 709 : Schedule B, column C

gr3849 — Thu, 11 Apr 2024 14:07:47 GMT

I agree with you that the line 14 of the previous F709 should be used for the Sch B Column C on the new F709 for the prior gifts.

Thank You very much.