Federal gift tax

[waynepeterson]

I made a gift to my daughter of $150,000 this year so she could purchase a home.  It is my understanding that she has no tax consequences as the recipient and I should have no tax consequences as this is less than the millions of dollars allowed prior to having to pay taxes  (this is my first gift).   I believe I have to submit a form 709 to the IRS also.   Will this be done when I fill out my taxes or do I need to send it in separately?   If separately do I need to report it on my tax return?    Let me know.  Thanks for your help.  

[Anonymous_ · Accepted solution]

You do not need to report the gift on your federal income tax return (Form1040), but you do need to file a separate gift tax return (Fotm709).

See https://www.irs.gov/instructions/i709#en_US_2022_publink16784xd0e314

Note that you file Form 709 separately from your Form 1040 and TurboTax does not support Form 709.

[leeloo]

Form 709 is used to file a gift tax and it is sent separately from your federal return. For 2022 you were allowed to give up to $16,000 without having to file the form. There is a lifetime exclusion that your yearly gifts are applied against.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/report-cash-gift/L5ovEeUBM_US_e...

https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N

https://www.irs.gov/pub/irs-pdf/f709.pdf

[JohnS_CPA]

Form 709 is an annual return and is filed separately from your individual return.

Generally, you must file Form 709 no earlier than January 1, but not later than April 15, of the year after the gift was made. However, in instances when April 15 falls on a Saturday, Sunday, or legal holiday, Form 709 will be due on the next business day. 

Keep in mind you may have state filing requirements depending on what state you live in.

Additional resources here: Instructions for Form 709 (2022) 

[bz1111]

I made a gift of 30000 to my daughter to buy a house.  The gift is over 16000, and thus I need to report on Form 709.   Schedule A part 4 let me subtract the 16000, resulting in 14000.    The 14000 is then entered on Part 2 page 1 line 1.  Thereafter, it asks you to calculate the tax amount on 14000.  But nowhere do I see where I can apply the 14000 against the lifetime gift exemption.  How and what part of the Form 709 can I do that?

[DaveF1006]

 This is reported in this section of the 709 Gift Tax return. The questions 1-8 are self-explanatory.

@bz1111 

[Anonymous_]

Read the instructions for Form 709. You enter your unified credit amount on Line 7 in Part 2.