Form 709 Schedd B

[jc220]

It's my understanding that Gift Taxes are assessed per each entity that is gifted.  So the Lifetime Exclusion is per entity gifted, not per donor.  Sched B wants data from any previous 709 filed but it doesn't ask about the person that was gifted.  If I gifted someone in 2023 but then gifted a different person in 2024, why am I asked to enter data from 2023 on my 2024 Form 709? There is nothing in the instructions that clarifies this in any way.  Not to mention the very confusing instructions for Sched B for the "amount finally determined" for column e.  The IRS will not help with non-1040 questions.  Can you?

[M-MTax]

On Schedule B, the total "taxable gifts" for each (applicable) tax year are listed on each line.

For example, the first line might be for the 2018 tax year, the second line for the 2021 tax year, the third line for the 2022 tax year, and so forth. In other words, each line is the total of ALL gifts for the tax year, not for an individual donee.

If you have previously filed Form 709 for one or more years claiming an applicable credit against taxable gifts, you should really be using a professional tax preparer for that purpose or, at the very least, using 709 preparation software if you insist on preparing the return yourself.

See https://www.puritas-springs.com/product-category/federal

[MinhT1]

The lifetime exemption for gift taxes applies per person (donor), and not per gift recipient (donee).

This is why gift tax returns require the details of all previously filed gift tax returns filed by each taxpayer to calculate the cumulative total of gifts made during that person's lifetime.

[jc220]

So if I misunderstood that, did I also misunderstand that the annual limit for gifting without taxes (this year it's $18,000) is per person gifted and not the total gifts by the donor?  I've researched this over and over and each example made that clear. 

[jc220]

Thank you for the clarification. 

[M-MTax]

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@jc220 wrote:

....did I also misunderstand that the annual limit for gifting without taxes (this year it's $18,000) is per person gifted and not the total gifts by the donor? 

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The annual exclusion for not being required to file a Form 709 is $18,000 per donee for 2024 and $19,000 per donee for 2025.

[jc220]

Thank you - glad I understood that at least.