Gift Tax form 709

Forum|Forum|11 months ago
October 14, 2025
3 replies
115 views

If I give a piece of property to one of my children, what is the adjusted basis of the value of the gift. Do I include the cost of all the repairs and upgrades to the house prior to my giving the gift? So the value would be FMV minus cost plus repairs etc? Or is it just FMV minus original cost, and the investment in making the property livable is lost?

xmasbaby0

Level 15

Gifts given to family members, friends or other individuals are not deductible. Gifts received are not taxable to the person who received the gift, and are not entered on a tax return.

If your gift exceeds the yearly limit ($19,000 per individual) imposed by the gift tax rules, then you will need to complete a Form 709 gift tax form and send it to the IRS, although it is very unlikely that you will owe any tax.

TurboTax does not support Form 709. It is not an income tax form and would not be included as part of an income tax return.

Here is a link to the form:

https://www.irs.gov/pub/irs-pdf/f709.pdf

https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N

Here's a link for Form 709 preparation software:

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

Here are some useful videos on the Form:

https://www.youtube.com/watch?v=a5wJow5h-No

https://www.youtube.com/watch?v=5Z_28sVOrTY

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

user17604569096Author

Level 2

I know all that, what I am asking when I fill out a Form 709 how do I enter the basis for the property / gift. there was considerable investment to the property before I gave it away. I want to make sure my children don't wind up paying more tax than they need to when and if they go to sell the property.

bluckey

Level 2

Generally, the value of a gift is its Fair Market Value on the date of the gift. If you want to protect yourself, it may be worthwhile getting an appraisal on the property.