Form 709 Line 7 Part 1

[jacknelson218]

Hi there,

I am confused about what to fill in line 7 of part 1 of form 709. Just for example: say I gifted $44000 in 2018 and say $200k in 2019:

1) What should I fill in line 7? Would it be $4,505,800 or should it be tax on the $200k by looking into Table for computing gift tax, which would be $38,800 + (32/100)*50000? 

2) Also for line 8, what would be the applicable credit for previous year which is $44000?  Would it be $9160 or $4,417,800? I guess I should enter that same amount in Schedule B column C. 

Thanks so much!

[brasstax10]

The instructions are not easy to understand......it takes work. The instructions for part 2 are here

If you can't understand the instructions then you are out of your mind trying to do that form by yourself.....get a tax pro with experience to file the return. BTW the IRS keeps those 709s for decades so you don't want to screw them up.

[jacknelson218]

I called up one consultant who said he will charge $250 just to clarify those couple of questions for 709.. :( So  will wait if any one else in the community has advice on what to fill for line 7 and 8. 

[brasstax10]

Well I can say for sure that you would put $4,505,800 on Line 7. Line 8 comes from Sch B and it's the credit from prior periods.

[jacknelson218]

Thank you so much! Please confirm if it would be 4,417,800or $9610 for previous period (2018). I guess I made a mistake of entering it as 9610 previous year and I have only submitted for 1 year so far. :(