How to fill out schedule A of form 709 when gift splitting with spouse

[bretthardy]

Question regarding how to fill out schedule A on the 2024 version of form 709 when gift splitting with spouse.

I made a large cash gift to our adult son and would like to split the gift with my wife. I understand we both need to fill out form 709 and each attach a notice of consent. On schedule A, I am filling out the top half of schedule A. Does my wife also fill out the top half of schedule A on her gift tax return or does she fill out the bottom half labeled “Gifts made by spouse”?

[RobertB4444]

On hers she is the primary and you are the spouse.  So on hers she will fill out the top half for her gift and put your gifts in the spouse section of schedule A.

On your 709 you will fill out the top portion and put her gifts in the spouse portion of schedule A.

If the gift is split evenly then the returns should essentially be identical.  Other than the name at the top.

@bretthardy 

[bretthardy]

Thanks for the reply. One follow-up question: If we just made one gift which we are splitting, would it really be listed on the top AND bottom of schedule A?

The end result in this case would be listing the same gift twice which would double the amounts in part 4 of schedule A, this does not seem right. It seems the top table is for gifts I make which are being split and the bottom table is for other, separate gifts that my spouse has made which are also being split. The heading for the bottom table is: "Gifts made by spouse—complete only if you are splitting gifts with your spouse and spouse also made gifts." This is not my situation, there is just ONE gift that we are splitting.  Let me know if that clarifies my question.

[DianeW777]

See the information specifically for gift splitting below and it would not be double. You are entering for each spouse as indicated by our Tax Expert @RobertB4444 .

• Gift splitting elected.  Enter on Schedule A the entire value of every gift you made during the calendar year while you were married, even if the gift's value will be less than $18,000 after it is split in column (h) of Part 1, 2, or 3 of Schedule A.
• Gifts made by spouse.   If you elected gift splitting and your spouse made gifts, list those gifts in the space below “Gifts made by spouse” in Part 1, 2, or 3. Report these gifts in the same way you report gifts you made. 

@bretthardy 

[PaulR5]

Hi,

I have the same question.  I think the confusion is over the instruction on Schedule A, Part 1, to report:

"Gifts made by spouse--complete only if you are splitting gifts with your spouse and spouse also made gifts."  

Suppose you and your spouse made only one gift, (say) $50,000 and are splitting it.  It seems that while you and your spouse are "splitting gifts" it is not the case that "your spouse also made" this gift.  On this 709 you made the gift and she did not.  On her 709, she made the gift and you did not. 

With that interpretation, everything works out.  Your spouse reports nothing here and the total for column (i) is just $25,000.  This $25,000 is carried over to Line 1 of Schedule A, Part 4.   She will do the same on her 709.  In the end, as a couple, you get a total exclusion of $36,000 against the total $50,000 gift, which is right.  

This is not what happens if you report $25,000 on Schedule A, Part 1 and you also report $25,000 for your spouse.  Then on Line 1 of Schedule A, Part 4 you are stuck reporting $50,000 ("Total value of gifts of donor.  Add totals from column (i) of Parts 1,2, and 3").  This creates a problem.

Do the experts in this forum see it this way, or differently?   I have made great use of reading the forum over many years. 

Thanks!

[bretthardy]

I actually called the IRS gift tax help line last week to this question clarified. They confirmed that the first response to this thread is correct. If there is just one gift that is being split between spouses, only the top portion of schedule A is filled out by each spouse. They are essentially identical gift tax returns. The wording definitely makes it confusing but it seems this is the way to go.