Hi there,
In Form 709, I am entering info for each of the prior years 2018 and 2019 in Schedule B, column C. I referred to “Table of Basic Exclusion and Credit Amounts” and entered 4,417,800 for 2018 and 4,505,800 for 2019.
Now I entered 4,417,800+4,505,800= 8923600 in Line 1 Column C: Totals for prior periods.
Is the above correct?
Then in Part 1: General information line 8=8923600 and line 7= 4,577,800 Is this correct?
Now for line 9: [Line 7 - line 8] = 4,577,800 - 8923600 = -
Thank you!
There's an online calculator that may help....https://www.taxformcalculator.com/calculator/709.html......but this thing gets wicked complicated and you should get help from a tax pro when you're preparing this form....the IRS has a lower tolerance for any mistakes on this form than any other and it only comes back to bite years down the road.
Thank you so very much! That calculator is super helpful. I wasn't aware of that earlier. I tried the calculator and ran into following questions. Thanks a lot again!
1) As in screen shot below as an example, Line 3 of Item 19 says "Total taxable gifts. Add lines 1 and 2", but it doesn't add because 110+14= 124 and not 102.. Wondering how it is coming up with that calculation.
2) The calculator also fills 0 from line 4 onwards exception for line 8. Are we not expected to compute the tax using Table for computing gift tax?
Please see my comments below regarding your Form 709 gift tax questions :