Filing Retroactive Gift Tax Return Form 709

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Hi,

My dad purchased a property in 1999 for $120,000 and he gifted it to my brother in 2018. He did not file a gift tax return. How would he file a retroactive gift tax return form 709 for 2018?

Thanks,

Anonymous_Answer

Level 15

@hcjontax wrote:

How would he file a retroactive gift tax return form 709 for 2018?

Download a 2018 Form 709 from the IRS web site below, prepare the form, print it and mail it in.

https://apps.irs.gov/app/picklist/list/priorFormPublication.html?resultsPerPage=200&sortColumn=sortOrder&indexOfFirstRow=0&criteria=formNumber&value=709&isDescending=false

He could also investigate having the return professionally prepared.

See https://taxexperts.naea.org/listing/service/estates-gifts-trusts

Anonymous_Answer

Level 15

@hcjontax wrote:

How would he file a retroactive gift tax return form 709 for 2018?

Download a 2018 Form 709 from the IRS web site below, prepare the form, print it and mail it in.

https://apps.irs.gov/app/picklist/list/priorFormPublication.html?resultsPerPage=200&sortColumn=sortOrder&indexOfFirstRow=0&criteria=formNumber&value=709&isDescending=false

He could also investigate having the return professionally prepared.

See https://taxexperts.naea.org/listing/service/estates-gifts-trusts

hcjontaxAuthor

Level 2

Thank you. On the from 709 - I know the cost basis is $120,000 but this was the 1999 purchase price. I don't have any info on the improvement costs or depreciation since then. Can I just estimate it to be $20,000 for the 18 years and have the cost basis be $140,000?

Lastly, what if its difficult to estimate the value at date of gift, can I just use the same amount as the basis? If the value at date of gift is much higher, what cost basis does the recipient use if he sells the gift at a profit a few years from the transfer?