IRS Form 709 (Gift Tax Return) - Simple Example for 2023 - Step-by-Step Guide
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- Опубліковано 2 жов 2024
- More Form 709 Tutorials:
Real Estate Gifts: • IRS Form 709 (Gift Tax...
Gift of Publicly Traded Stock: • IRS Form 709 (Gift Tax...
Section 529 Plan Contributions: • IRS Form 709 (Gift Tax...
Charitable Contributions: • IRS Form 709 (Gift Tax...
Split Gifts Married Couples: • IRS Form 709 (Gift Tax...
Prior Period Gift Reconciliation: • IRS Form 709 (Gift Tax...
The IRS Form 709 is filed by U.S. individuals to report taxable gifts made during the tax year.
In this example, we look at a taxpayer who gifts cash of $19,000 to her son. The annual exclusion available in 2023 is $17,000, so the gift must be reported because it exceeds the annual exclusion limit per donee.
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DISCLAIMER: The information provided in this video may contain information about tax, financial, and legal topics. Such materials are for informational purposes only and may not reflect the most current developments. These informational materials are not intended and should not be taken as tax, financial, or legal advice. You should contact an advisor to discuss your specific facts and circumstances. Self-help services may not be permitted in all states or jurisdictions. The use of these materials does not create an attorney-client or confidential relationship. This video does not include information about every topic or issue related to these informational materials.
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Thanks for simplifying this. I continue to be amazed on how complicated the IRS can make what should be a straight forward concept!
I work on state excise taxes for my main job and have filed property taxes as well. I stared at this and the instructions for way too long trying to figure it out. I was cross eyed. THANK YOU!
I think the IRS is the best at making something simple, overly complicated.
Thank you so much. You saved me a decent amount of money by helping me complete the form myself!
Glad to hear it was helpful
This was very helpful. Thank You!
Glad it was helpful!
Very helpful! Would like similar walkthrough for a married couple giving gifts over annual exclusions.
Thanks! We will add a video covering that scenario
Thank you so much. This is so well done. I truly would have been lost without you!
Thank you. This was excellent. I was intimidated trying to figure out form 709 but was able to do it easily following these instructions.
Thank you so much. I wasted a few hours trying to figure this out on my own, before finding your excellent video.
Great video. Very helpful. The IRS instructions are ridiculous. Thank you.
Glad to hear it was helpful!
Thank you for taking the time to walk through a Form 709. Yours is the best video I have found on UA-cam.
Thank you for this common sense, straightforward explanation for a needlessly complicated form!
You're very welcome!
its so stupid why line 7 is called applicable credit and not called "lifetime exclusion amount"
Just a quick comment. I noticed at the bottom of page 1... in the far right of the signature area that you have a "NO" checked in the box reading "May the IRS discuss this return with the preparer shown below?" Should I also check "NO"?
I gave my child four cash gifts (different days) over the course of the year 2023 totaling more than $40,000. On Schedule A, Part 1, do I need a separate entry for each gift or can I combine them and say "various" for the date? Thanks. These videos are very helpful.
You are the only one (a dozen websites have not) who actually explained how to do the form. All the other sites said they'd expplain how to fill out the form; uniformly, ALL said only to "Fill out Schedule B" for example. That was their instruction. Bravo sir.
Excellent. Very useful and clear. Thank you.
Glad it was helpful!
Once 709 form is filed for its first year, does it mean that this type of return have to file each year in the future?
Good question! In general, you only need to file the Form 709 for a year when you have reportable gifts. So filing in one year does not automatically require you to file in all subsequent tax years.
The gifts subject only to gift tax box if limited for space with all the information they want. What do you do if you have several people that will not fit in that allotted space?
Super helpful! This was great. I've only done one of these, but now have a 'prior' year to report. So many people think they need a CPA to get these forms done - but it just takes guidance and help from someone like you. Be blessed and may your business prosper in the mighty name of Jesus. Amen
This was soooo helpful. Here's a silly question: when sending this in to IRS, do they ONLY want the first page, up to where we sign? Or do we have to mail in all the pages of schedules A, B, etc?
Are you sure about Line 7 on page 1?
Instruction says to follow the same tax table, which means 12,920,000*.4 = 5,168,000
as opposed to that big table that has 5,113,800
Apologies. It comes out to be the same
(12,920,000-1,000,000)*.4 + 345,800 = 5,113,800
Grace be to you for helping with what the IRS makes ridiculously complicated. What the controllers do to the joy of gift giving.
Hi Jason, how IRS is tracking the 709s taxpayer had filed? In the other words, when taxpayer lost track of 709s he/she had filed, is it possible to pull the records from his/her tax account in IRS website?
Thanks Jason, this was very helpful. One question: are you required to complete the Part 3 - Tax Computation section of the form for a basic cash gift?
But wait - even though it's 'taxable' it doesn't mean you're going to get taxed on it right (unless you've given gifts of over $13,000,000 to that person over his/her lifetime)?
thanks for the video. Would you be able to help me fill out Form 709 for gifts I am about to make to my family. Based on on your individual advise, I would make the further decision
Greetings thank you. Do you have videos on 1041
So if marry can you put 34,000 at (part 4, line 2) 9:17. Thanks for the vid. Don't think I could figure out how to fill this form out by myself
Question: Why is a "0" not entered on line 15 of form 709 since it says to subtract line 14 from line 6, which would result in "0"?
I dont under stand is it $18,000 or is it the Lifetime IRS Gift Tax Exemption amount?
This is a great video but I have a question. I'm filing this form for my wife. The cash was under her name and we file jointly. I know your video was for a single person and curious if I would need to do anything different than following your steps in our case?
Awesome! Thank you
You're welcome!
What if the donor is married, but the gift is only coming from him and not his wife? Would you answer NO on line 12?
Question: if I gift real estate and cash, do I need to file two Schedule As, or list both gifts on one schedule A ? Thanks
Outstanding video. Thank you!
That was an awesome explanation. Thank you!
OUTSTANDING!!
Thank you for the support. Glad to hear it was helpful!
Thank you! As noted before, why does everything have to be so complicated?
If I gift the money via bank transfer, should I describe it as a cash gift or something else?
Thanks, Jason - would love to see an example for a direct-split gift example. Thanks again for creating this excellent video.
Can I gift the maximum amount for that tax year to a friend for their life span?
Thanks!
Thanks for the support!
This is beyond useful. It is 100% clear, concise and complete. Exactly as needed. Thanks so much.
Thank you for this great explanation. Was simple and clear to follow.
Glad it was helpful!
Where are all these forms that fill out part 2 all by themselves?!
I have a masters degree in Finance, and had to do this for my dad. Your video was amazing - thank you! I would have paid for this.
Glad to hear it was helpful. Thanks for the support!
If the donor does not file the 709 does the receiver need to file it?
Can form 709 be e-filed ?
Thanks. Great job. Very helpful.
Glad it was helpful!
Thank you. This is helpful (as opposed to pretty much everyone else). A question I have (and it is also asked a lot and NEVER answered) is what write on line 7 if the person is a resident alien (green card holder). The instructions only talk about "citizen" and "non-citizen non-resident", but both are not only inapplicable to green card holders, but can actually have grave consequences (both "claiming to be a citizen anywhere" and "claiming to be a non-resident on any tax return" disqualify the person from ever acquiring the citizenship in the future according to USCIS guidelines). I would be very grateful for your answer.
If there is one gift for less than the exclusion (i.e. 15,000) and another gift for more than the exclusion to the same person, (i.e. 30,000) do you add both gifts and make it 45,000 and then take out 17,000 or do you only report the 30,000 and take our 17,000? There is a big difference in taxes.
Bless you for doing this!! I spent way too much time trying to figure For 709 on my own and came up with owing tax, which I knew I didn't because of the huge exemption.
Thanks for the detailed walkthrough of Form 709, Jason! We live in CA. If $50,000 was transferred last year from an investment account solely in the name of my husband to our son's student loan account, is $34,000 tax free? In that case, we can split the gift & report $16,000 in line 1, right? Is the investment account started in CA considered a community property though it's solely under my husband's name? Hope you can reply & post another video with walkthrough of a split gift for a married couple giving a gift more than $34,000!
Awesome level of detail and explanation, you saved me hours of frustration!
Glad it helped!
I have gifted cash and 30 shares of stock to each of my 3 siblings. Total of each siblings gift totaled $17,499.
On Schedule A Part I there is enough room to document 1 sibling's cash gift. Do I attach another Schedule A Part 1 for the stock to this same sibling?
Therefore in total I would have 2 pages of Schedule A Part 1 for each sibling.
Then on 709 page 1 I add the total of all gifts.
Thank you for your video, time and assistance.
Respectfully,
Jane Marie Cook
Thank you very much for the help. It seems like this form is needlessly complicated. The Table for Computing Gift Tax was the most difficult part for me. Thank you again for the help.
Thank you so much for your excellent tutorial on the Gift Tax return. I got stumped on the actual calculation of the amount of tax due until I finally understood the amount of tax shown for each range is cumulative in the IRS Gift Tax Table. That was not obvious to me. Perhaps mention that in future videos for us newbies. I look forward to watching more of your videos!
Thank you! Really clarified things for me.
Glad it was helpful!
I very much appreciate the video ! Probably 8 hours trying to figure this out! No wonder people say to forget the filing and let the IRS audit you(maybe)
I spent over two days trying to figure out this form. You did an amazing job of explaining it. Thank you very much.
Thank you Jason! I am slowly figuring out Form 709. How does page 1 of the return differ if Jane Q is married and all other gift items remain the same?
Well Done! Well presented and very helpful. I'm very grateful to you for taking the time to post this. Heaven knows that the Fed could never bother with any real practical help like this for taxpayers. Thank you!
why did you use $5M number instead of $12M in line 11 if she is single. . . is it only half the amount?
Thank you so much! First year completing this form and this was very easy to follow and understand!
Do you need a separate form for each donee? Or, how do you enter info for multiple donees in the space provided
Wow this was so helpful. thank you so much. Excellent instructions.
This video was a God-send! Thank you!
Glad it was helpful!
Very helpful! Thank you.
Glad it was helpful!
Awesome clarity. Thanks so much!!
HUGE thank you! You took the stress out of this process for me.
You ROCK!!!
Thanks for the support!
Very helpful!