If a person gifted land in 2001 & stocks in 2 subsequent years to her children, exceeds annual exemptions, can Form 709 be filed for the subsequent years, first?

[pakikiheiya]

Assume Form 709 was not filed for the applicable years.  The land value is currently unavailable. The stocks were gifted prior to 2016, and the info is available to currently complete Forms 709.

[MinhT · Accepted solution]

Form 709 must be filed by the donor for each year in which there are gifts exceeding the exclusions. after the first form 709 is filed, each subsequent form 709 must report the exemptions from the previous form for the purpose of calculating the usage of the lifetime exemption of $5.45 million. Therefore, if form 709 was not filed in previous years, you must file them starting from the earliest year the form had be filed.

[pakikiheiya]

Thank for your quick reply.

Have clarification question. You mentioned lifetime exemption is $5.45 million for my situation. Even though my gifting started in 2001???  

Please reply as soon as you can. Thank you.

[MinhT]

If your gifts above the exclusions started in 2001, the lifetime exemption has increased as follows:
Historical Federal Gift Tax Lifetime Exemptions and Rates
 
Year Gift Tax Exemption Top Gift Tax Rate
1997 $600,000         55%
1998 $625,000         55%
1999 $650,000         55%
2000 $675,000         55%
2001 $675,000         55%
2002 $1,000,000 50%
2003 $1,000,000 49%
2004 $1,000,000 48%
2005 $1,000,000 47%
2006 $1,000,000 46%
2007 $1,000,000 45%
2008 $1,000,000 45%
2009 $1,000,000 45%
2010 $1,000,000 35%
2011         $5,000,000 35%
2012 $5,120,000 35%
2013 $5,250,000 40%
2014 $5,340,000 40%
2015 $5,430,000 40%

[pakikiheiya]

So to confirm my understanding of your reply and the attached chart, if my gift for 2001 exceeds the annual exclusion, the lifetime exemption starts at $675,000?

[pakikiheiya]

When I first file Form 709 for the 2001 gift?

[MinhT]

Yes

[pakikiheiya]

TurboTaxMinhT,

Please disregard: "When I first file Form 709 for the 2001 gift?"  It might cause some confusion.  But please reply to the question just above.  Thanks