This topic was raised by a separate post in 2021, and the thread does not indicate that it was resolved. I will restate the question with specific reference to the 2022 Form 709:
The core of the issue is whether Part 4 is asking for the total gifts of both spouses - while Part 2 Line 7 is asking for the Applicable Credit (lifetime exclusion) for only one spouse.
--- including the text of my reply in the other thread as a new post---
This issue still exists so I'm going to layout how I came to the same question directly from Form 709.
working through the 2022 Form 709 -- Part 4, line 1 reads (CAPS added):
**Total value of gifts of donor. Add TOTALS FROM COLUMN H of parts 1, 2, and 3.**
"TOTALS FROM COLUMN H" is the source of the issue, because Column H includes BOTH the gifts of the donor AND THE DONOR'S SPOUSE.
To rephrase: Even though donors are "splitting", Schedule A Part 1 specifically has you add "Gifts made by the spouse". So even though you are splitting, adding up Column H will give you the total gifts of BOTH spouses.
I would infer that software providers are also making this mistake?
The problem is then that on part 4 line 2 it asks for "total annual exclusions" for gifts listed on line 1. So I would assume "total" means both spouses (in 2023 - $17,000*2=$34,000.
What's the purpose of having each spouse file 709 if the form is working on a TOTAL for both spouses? Seems like the IRS would end up double counting the gifts.
Or on an individual form -- do you double the annual exclusion as well as doubling the lifetime exclusion?
I am not concerned with going over $12.92mm * 2, but I am concerned with getting the correct numbers in.
Has anyone else resolved this -- and does the IRS form 709 part 4, line 1 perhaps incorrectly ask for the totals of Column H, rather than just 1 spouse's amount from Column H?
