Hi there,
I am confused about what to fill in line 7 of part 1 of form 709. Just for example: say I gifted $44000 in 2018 and say $200k in 2019:
1) What should I fill in line 7? Would it be $4,505,800 or should it be tax on the $200k by looking into Table for computing gift tax, which would be $38,800 + (32/100)*50000?
2) Also for line 8, what would be the applicable credit for previous year which is $44000? Would it be $9160 or $4,417,800? I guess I should enter that same amount in Schedule B column C.
Thanks so much!
The instructions are not easy to understand......it takes work. The instructions for part 2 are here
If you can't understand the instructions then you are out of your mind trying to do that form by yourself.....get a tax pro with experience to file the return. BTW the IRS keeps those 709s for decades so you don't want to screw them up.
I called up one consultant who said he will charge $250 just to clarify those couple of questions for 709.. :( So will wait if any one else in the community has advice on what to fill for line 7 and 8.
Well I can say for sure that you would put $4,505,800 on Line 7. Line 8 comes from Sch B and it's the credit from prior periods.