Form 709 Gift Tax Worksheet for schedule b

Forum|Forum|2 years ago
June 28, 2023
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how do I fill out schedule B (and its worksheet) on Form 709 Gift Tax when I have prior years?

-Instruction terms are unclear.

Ask the Experts - Energy - June 2023

Kelly Thomas C

Level 5

Generally, Form 709: U.S. Gift Tax Return is required if any an individual makes one or more gifts to any one person (other than his or her citizen spouse) that are more than the annual exclusion for the year. I am not sure what you intend to use Form 709 Form on the Schedule B, which is a Schedule used to report dividends, interest, an other investment income?

Perhaps you could explain how you are trying to use 709 for this? FYI, if you received the gift, you are not responsible for reporting this gift in Form 709. Rather, the person who gave you the gift is responsible for this filing.

Kelly C.

CPA

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GZ49Author

Level 2

It's not Schedule B on the 1040 - Form 709 has its own Schedule B

Kelly Thomas C

Level 5

Got it...I thought you were referencing Schedule B on 1040. Taxable gifts made in prior years are reported on Schedule B. That is the purpose of this Schedule. So if there is no prior year gift, this schedule is blank

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Esther M

Level 4

Hello GZ49,

I understand that this is a very complicated form to complete. You may need to see your accountant to do this for you if the steps below are not clear.

Schedule B of your Form 709 requires that you list out all your prior year taxable gifts with details about the calendar year of the gift, the IRS office where you filed your Form 709, the exclusion amounts for each year and the credit amount for each year. Depending on which prior years that are applicable to you

Column A. If you filed returns for gifts made before 1971 or after 1981, show the calendar years in column A. If you filed returns for gifts made after 1970 and before 1982, show the calendar quarters.

Column B. In column B, identify the IRS office where you filed the returns. If you have changed your name, be sure to list any other names under which the returns were filed. If there was any other variation in the names under which you filed, such as the use of full given names instead of initials, please explain.

Column C. To determine the amount of applicable credit (formerly unified credit) used for gifts made after 1976, Select from Column C in the table below.

Column D. In column D, enter the amount of specific exemption claimed for gifts made in periods ending before January 1, 1977. (Select from Column B in the table below)

Column E. In column E, show the correct amount (the amount finally determined) of the taxable gifts for each earlier period. See Regulations section 25.2504-2 for rules regarding the final determination of the value of a gift.

Note. Amounts shown in column E should reflect all taxable gifts, even if no gift tax was paid due to the applicable (formerly unified) credit.

Table of Basic Exclusion and Credit Amounts

(as Recalculated for 2022 Rates)

Period (A)	Exclusion Amounts (B)	Credit Amounts (C)
1977 (Quarters 1 & 2)	$30,000	$6,000
1977 (Quarters 3 & 4)	$120,667	$30,000
1978	$134,000	$34,000
1979	$147,333	$38,000
1980	$161,563	$42,500
1981	$175,625	$47,000
1982	$225,000	$62,800
1983	$275,000	$79,300
1984	$325,000	$96,300
1985	$400,000	$121,800
1986	$500,000	$155,800
1987 through 1997	$600,000	$192,800
1998	$625,000	$202,050
1999	$650,000	$211,300
2000 and 2001	$675,000	$220,550
2002 through 2010	$1,000,000	$345,800
2011	$5,000,000	$1,945,800
2012	$5,120,000	$1,993,800
2013	$5,250,000	$2,045,800
2014	$5,340,000	$2,081,800
2015	$5,430,000	$2,117,800
2016	$5,450,000	$2,125,800
2017	$5,490,000	$2,141,800
2018	$11,180,000	$4,417,800
2019	$11,400,000	$4,505,800
2020	$11,580,000	$4,577,800
2021	$11,700,000	$4,625,800
2022	$12,060,000	$4,769,800

I hope this answers your question.

Best regards

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Anonymous_

Level 15

@Esther M wrote:

To determine the amount of applicable credit (formerly unified credit) used for gifts made after 1976, Select from Column C in the table below.

Except if total of prior gifts is $500,000 or less, then the donor would use the amount of applicable credit actually applied in the prior period.

Not too helpful to simply copy and paste the instructions for Form 709 when @GZ49 is having difficulty comprehending them (since the instructions are, indeed, obtuse). Again, preparation software is needed for a scenario like this such as this one.