My mom sold her house and gave each of her four children a gift requiring a 709 to be filed. Does a separate 709 have to be filed for each person or is once sufficient. I see it asks for name and address but does that require the full mailing address or just the city/state? Thanks.
The 709 is filed so that the IRS can keep track of someone's total lifetime gifts, in case they become liable for Estate/ Gift Tax.
Your mom would file one of these to report individual gifts in excess of the exclusion amount, currently $14,000 per donor, per donee.
The 709 is filed so that the IRS can keep track of someone's total lifetime gifts, in case they become liable for Estate/ Gift Tax.
Your mom would file one of these to report individual gifts in excess of the exclusion amount, currently $14,000 per donor, per donee.
Thanks. So to confirm I read that correctly, 4 separate 709s?
No, mom does 1 Form 709 listing four recipients in Section A
Jim Bob 61 - TurboTaxDexter is correct but missing a point that you are struggling with. The instructions give guidance that if you need more room in Schedule A that you should attach an addendum which is in the same format as the Schedule A. I have the same problem in that my mom is gifting 5 children. So yes - one Form 709 but expand your Schedule A with an addendum.
How do you expand section A with an addendum? (I have gifted 3 people). Thanks!
Why do you reference the exclusion amount as $14,000? I’m reading that it is $15,000 for 2019 and 2020? My thinking is that don’t have to file 709 if give no more than $15,000 to a child? Also, if both husband and wife each give the allowable exclusion amount to a child from joint checking account should separate checks be sent out to avoid having to do the 709 filing?
@ron6612 This thread is very old. When the user forum changed from Answer Exchange to Real Money Talk, a lot of threads migrated over with June 2019 dates but are really much older. That's why the gift tax amount you see here is out of date.
https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N
I’m confused about the term split gift and need to file 709. If my wife and I each write separate checks from our joint account to one child for $15k each would we still need to file the 709 for a split gift?
@ron6612 wrote:
I’m confused about the term split gift and need to file 709. If my wife and I each write separate checks from our joint account to one child for $15k each would we still need to file the 709 for a split gift?
No. An individual is allowed to gift $15k to another individual without having to file a Form 709.
So if you gift 15K to the child and your spouse gifts $15K to the same child there is no requirement for either of you to report the gifts given.
@ron6612 wrote:
And that situation has nothing to do with split gift rule?
No, this situation has nothing to do with gift splitting since each individual gift does not exceed the $15k exclusion.
IRS Form 709 instructions page 6 - https://www.irs.gov/pub/irs-pdf/i709.pdf#page=6
You noted in your post “since each individual gift does exceed the $15k exclusion.” Did you mean to say “does not exceed?”
@ron6612 wrote:
You noted in your post “since each individual gift does exceed the $15k exclusion.” Did you mean to say “does not exceed?”
Yes, that was a typo. Should read "does not exceed".
Last question: would it be better to write separate checks from separate checking accounts or does this not matter? Thanks again!
@ron6612 wrote:
Last question: would it be better to write separate checks from separate checking accounts or does this not matter? Thanks again!
Doesn't matter as long as separate checks are written.