Form 709Department of the Treasury Internal Revenue Serv.docx
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About This Presentation
Form 709
Department of the Treasury
Internal Revenue Service
United States Gift (and Generation-Skipping Transfer) Tax Return
Information about Form 709 and its separate instructions is at www.irs.gov/form709.
(For gifts made during calendar year 2013)
See instructions.
OMB No. 1545-0020...
Slide Content
Form 709
Department of the Treasury
Internal Revenue Service
United States Gift (and Generation-Skipping Transfer) Tax
Return
Information about Form 709 and its separate instructions is at
www.irs.gov/form709.
(For gifts made during calendar year 2013)
See instructions.
OMB No. 1545-0020
2013
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Department of the Treasury
Internal Revenue Service
United States Gift (and Generation-Skipping Transfer) Tax
Return
Information about Form 709 and its separate instructions is at
www.irs.gov/form709.
(For gifts made during calendar year 2013)
See instructions.
OMB No. 1545-0020
2013
P
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1 Donor’s first name and middle initial 2 Donor’s last name 3
Donor’s social security number
4 Address (number, street, and apartment number) 5 Legal
residence (domicile)
6 City or town, state or province, country, and ZIP or foreign
postal code 7 Citizenship (see instructions)
8 If the donor died during the year, check here and enter date of
death , . Yes No
9 If you extended the time to file this Form 709, check here
10 Enter the total number of donees listed on Schedule A. Count
each person only once.
11 a Have you (the donor) previously filed a Form 709 (or 709-
A) for any other year? If "No," skip line 11b . . . . . . .
b Has your address changed since you last filed Form 709 (or
709-A)? . . . . . . . . . . . . . . . .
12 Gifts by husband or wife to third parties. Do you consent to
have the gifts (including generation-skipping transfers) made
by you and by your spouse to third parties during the calendar
fo
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1 Donor’s first name and middle initial 2 Donor’s last name 3
Donor’s social security number
4 Address (number, street, and apartment number) 5 Legal
residence (domicile)
6 City or town, state or province, country, and ZIP or foreign
postal code 7 Citizenship (see instructions)
8 If the donor died during the year, check here and enter date of
death , . Yes No
9 If you extended the time to file this Form 709, check here
10 Enter the total number of donees listed on Schedule A. Count
each person only once.
11 a Have you (the donor) previously filed a Form 709 (or 709-
A) for any other year? If "No," skip line 11b . . . . . . .
b Has your address changed since you last filed Form 709 (or
709-A)? . . . . . . . . . . . . . . . .
12 Gifts by husband or wife to third parties. Do you consent to
have the gifts (including generation-skipping transfers) made
by you and by your spouse to third parties during the calendar
year considered as made one-half by each of you? (see
instructions.) (If the answer is “Yes,” the following information
must be furnished and your spouse must sign the consent
shown below. If the answer is “No,” skip lines 13–18.) . . . . . . .
. . . . . . . . . . . . .
13 Name of consenting spouse 14 SSN
15 Were you married to one another during the entire calendar
year? (see instructions) . . . . . . . . . . . .
16 If 15 is “No,” check whether married divorced or
widowed/deceased, and give date (see instructions)
17 Will a gift tax return for this year be filed by your spouse?
(If “Yes,” mail both returns in the same envelope.) . . . . .
18 Consent of Spouse. I consent to have the gifts (and
generation-skipping transfers) made by me and by my spouse to
third parties during the calendar year
considered as made one-half by each of us. We are both aware
of the joint and several liability for tax created by the execution
of this consent.
Consenting spouse’s signature Date
19 Have you applied a DSUE amount received from a
predeceased spouse to a gift or gifts reported on this or a
previous Form
709? If “Yes,” complete Schedule C . . . . . . . . . . . . . . . . . . . .
. . . . . .
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instructions.) (If the answer is “Yes,” the following information
must be furnished and your spouse must sign the consent
shown below. If the answer is “No,” skip lines 13–18.) . . . . . . .
. . . . . . . . . . . . .
13 Name of consenting spouse 14 SSN
15 Were you married to one another during the entire calendar
year? (see instructions) . . . . . . . . . . . .
16 If 15 is “No,” check whether married divorced or
widowed/deceased, and give date (see instructions)
17 Will a gift tax return for this year be filed by your spouse?
(If “Yes,” mail both returns in the same envelope.) . . . . .
18 Consent of Spouse. I consent to have the gifts (and
generation-skipping transfers) made by me and by my spouse to
third parties during the calendar year
considered as made one-half by each of us. We are both aware
of the joint and several liability for tax created by the execution
of this consent.
Consenting spouse’s signature Date
19 Have you applied a DSUE amount received from a
predeceased spouse to a gift or gifts reported on this or a
previous Form
709? If “Yes,” complete Schedule C . . . . . . . . . . . . . . . . . . . .
. . . . . .
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1 Enter the amount from Schedule A, Part 4, line 11 . . . . . . . . .
. . . . . . 1
2 Enter the amount from Schedule B, line 3 . . . . . . . . . . . . . . .
. . 2
3 Total taxable gifts. Add lines 1 and 2 . . . . . . . . . . . . . . . . . .
. 3
4 Tax computed on amount on line 3 (see Table for Computing
Gift Tax in instructions) . . . . 4
5 Tax computed on amount on line 2 (see Table for Computing
Gift Tax in instructions) . . . . 5
6 Balance. Subtract line 5 from line 4 . . . . . . . . . . . . . . . . . . .
6
7 Applicable credit amount. If donor has DSUE amount from
predeceased spouse(s), enter amount
from Schedule C, line 4; otherwise, see instructions . . . . . . . . .
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1 Enter the amount from Schedule A, Part 4, line 11 . . . . . . . . .
. . . . . . 1
2 Enter the amount from Schedule B, line 3 . . . . . . . . . . . . . . .
. . 2
3 Total taxable gifts. Add lines 1 and 2 . . . . . . . . . . . . . . . . . .
. 3
4 Tax computed on amount on line 3 (see Table for Computing
Gift Tax in instructions) . . . . 4
5 Tax computed on amount on line 2 (see Table for Computing
Gift Tax in instructions) . . . . 5
6 Balance. Subtract line 5 from line 4 . . . . . . . . . . . . . . . . . . .
6
7 Applicable credit amount. If donor has DSUE amount from
predeceased spouse(s), enter amount
from Schedule C, line 4; otherwise, see instructions . . . . . . . . .
. . . . . 7
8 Enter the applicable credit against tax allowable for all prior
periods (from Sch. B, line 1, col. C) . 8
9 Balance. Subtract line 8 from line 7. Do not enter less than
zero . . . . . . . . . . . 9
10 Enter 20% (.20) of the amount allowed as a specific
exemption for gifts made after September 8,
1976, and before January 1, 1977 (see instructions) . . . . . . . . .
. . . . . 10
11 Balance. Subtract line 10 from line 9. Do not enter less than
zero . . . . . . . . . . 11
12 Applicable credit. Enter the smaller of line 6 or line 11 . . . .
. . . . . . . . . . 12
13 Credit for foreign gift taxes (see instructions) . . . . . . . . . . .
. . . . . 13
14 Total credits. Add lines 12 and 13 . . . . . . . . . . . . . . . . . . . .
14
15 Balance. Subtract line 14 from line 6. Do not enter less than
zero . . . . . . . . . . 15
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8 Enter the applicable credit against tax allowable for all prior
periods (from Sch. B, line 1, col. C) . 8
9 Balance. Subtract line 8 from line 7. Do not enter less than
zero . . . . . . . . . . . 9
10 Enter 20% (.20) of the amount allowed as a specific
exemption for gifts made after September 8,
1976, and before January 1, 1977 (see instructions) . . . . . . . . .
. . . . . 10
11 Balance. Subtract line 10 from line 9. Do not enter less than
zero . . . . . . . . . . 11
12 Applicable credit. Enter the smaller of line 6 or line 11 . . . .
. . . . . . . . . . 12
13 Credit for foreign gift taxes (see instructions) . . . . . . . . . . .
. . . . . 13
14 Total credits. Add lines 12 and 13 . . . . . . . . . . . . . . . . . . . .
14
15 Balance. Subtract line 14 from line 6. Do not enter less than
zero . . . . . . . . . . 15
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. 16 Generation-skipping transfer taxes (from Schedule D, Part
3, col. H, Total) . . . . . . . . 16
17 Total tax. Add lines 15 and 16 . . . . . . . . . . . . . . . . . . . . .
17
18 Gift and generation-skipping transfer taxes prepaid with
extension of time to file . . . . . . 18
19 If line 18 is less than line 17, enter balance due (see
instructions) . . . . . . . . . . 19
20 If line 18 is greater than line 17, enter amount to be refunded
. . . . . . . . . . . 20
Sign
Here
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. 16 Generation-skipping transfer taxes (from Schedule D, Part
3, col. H, Total) . . . . . . . . 16
17 Total tax. Add lines 15 and 16 . . . . . . . . . . . . . . . . . . . . .
17
18 Gift and generation-skipping transfer taxes prepaid with
extension of time to file . . . . . . 18
19 If line 18 is less than line 17, enter balance due (see
instructions) . . . . . . . . . . 19
20 If line 18 is greater than line 17, enter amount to be refunded
. . . . . . . . . . . 20
Sign
Here
Under penalties of perjury, I declare that I have examined this
return, including any accompanying schedules and statements,
and to the best of my
knowledge and belief, it is true, correct, and complete.
Declaration of preparer (other than donor) is based on all
information of which preparer has
any knowledge.
May the IRS discuss this return
with the preparer shown below
(see instructions)? Yes No
Signature of donor Date
Paid
Preparer
Use Only
Print/Type preparer’s name Preparer’s signature Date
Check if
self-employed
PTIN
Firm’s name
Firm’s address
Firm's EIN
Phone no.
For Disclosure, Privacy Act, and Paperwork Reduction Act
Notice, see the instructions for this form. Cat. No. 16783M
Form 709 (2013)
return, including any accompanying schedules and statements,
and to the best of my
knowledge and belief, it is true, correct, and complete.
Declaration of preparer (other than donor) is based on all
information of which preparer has
any knowledge.
May the IRS discuss this return
with the preparer shown below
(see instructions)? Yes No
Signature of donor Date
Paid
Preparer
Use Only
Print/Type preparer’s name Preparer’s signature Date
Check if
self-employed
PTIN
Firm’s name
Firm’s address
Firm's EIN
Phone no.
For Disclosure, Privacy Act, and Paperwork Reduction Act
Notice, see the instructions for this form. Cat. No. 16783M
Form 709 (2013)
Form 709 (2013) Page 2
SCHEDULE A Computation of Taxable Gifts (Including
transfers in trust) (see instructions)
A Does the value of any item listed on Schedule A reflect any
valuation discount? If “Yes,” attach explanation . . . . . . Yes No
B Check here if you elect under section 529(c)(2)(B) to treat
any transfers made this year to a qualified tuition program as
made ratably over a
5-year period beginning this year. See instructions. Attach
explanation.
Part 1—Gifts Subject Only to Gift Tax. Gifts less political
organization, medical, and educational exclusions. (see
instructions)
Gifts made by spouse —complete only if you are splitting gifts
with your spouse and he/she also made gifts.
A
Item
number
B
• Donee’s name and address
• Relationship to donor (if any)
• Description of gift
• If the gift was of securities, give CUSIP no.
• If closely held entity, give EIN
C D
SCHEDULE A Computation of Taxable Gifts (Including
transfers in trust) (see instructions)
A Does the value of any item listed on Schedule A reflect any
valuation discount? If “Yes,” attach explanation . . . . . . Yes No
B Check here if you elect under section 529(c)(2)(B) to treat
any transfers made this year to a qualified tuition program as
made ratably over a
5-year period beginning this year. See instructions. Attach
explanation.
Part 1—Gifts Subject Only to Gift Tax. Gifts less political
organization, medical, and educational exclusions. (see
instructions)
Gifts made by spouse —complete only if you are splitting gifts
with your spouse and he/she also made gifts.
A
Item
number
B
• Donee’s name and address
• Relationship to donor (if any)
• Description of gift
• If the gift was of securities, give CUSIP no.
• If closely held entity, give EIN
C D
Donor’s adjusted
basis of gift
E
Date
of gift
F
Value at
date of gift
G
For split
gifts, enter
1/2 of
column F
H
Net transfer
(subtract
col. G from
col. F)
Total of Part 1. Add amounts from Part 1, column H . . . . . . . . .
. . . . . . . . . . . . .
Part 2—Direct Skips. Gifts that are direct skips and are subject
to both gift tax and generation-skipping transfer tax. You must
list the gifts in
chronological order.
basis of gift
E
Date
of gift
F
Value at
date of gift
G
For split
gifts, enter
1/2 of
column F
H
Net transfer
(subtract
col. G from
col. F)
Total of Part 1. Add amounts from Part 1, column H . . . . . . . . .
. . . . . . . . . . . . .
Part 2—Direct Skips. Gifts that are direct skips and are subject
to both gift tax and generation-skipping transfer tax. You must
list the gifts in
chronological order.
Gifts made by spouse —complete only if you are splitting gifts
with your spouse and he/she also made gifts.
A
Item
number
B
• Donee’s name and address
• Relationship to donor (if any)
• Description of gift
• If the gift was of securities, give CUSIP no.
• If closely held entity, give EIN
C
2632(b)
election
out
D
Donor’s adjusted
basis of gift
E
Date
of gift
F
Value at
date of gift
with your spouse and he/she also made gifts.
A
Item
number
B
• Donee’s name and address
• Relationship to donor (if any)
• Description of gift
• If the gift was of securities, give CUSIP no.
• If closely held entity, give EIN
C
2632(b)
election
out
D
Donor’s adjusted
basis of gift
E
Date
of gift
F
Value at
date of gift
G
For split
gifts, enter
1/2 of
column F
H
Net transfer
(subtract
col. G from
col. F)
Total of Part 2. Add amounts from Part 2, column H . . . . . . . . .
. . . . . . . . . . . . .
Part 3—Indirect Skips. Gifts to trusts that are currently subject
to gift tax and may later be subject to generation-skipping
transfer tax. You
must list these gifts in chronological order.
Gifts made by spouse —complete only if you are splitting gifts
with your spouse and he/she also made gifts.
A
Item
number
B
• Donee’s name and address
• Relationship to donor (if any)
• Description of gift
For split
gifts, enter
1/2 of
column F
H
Net transfer
(subtract
col. G from
col. F)
Total of Part 2. Add amounts from Part 2, column H . . . . . . . . .
. . . . . . . . . . . . .
Part 3—Indirect Skips. Gifts to trusts that are currently subject
to gift tax and may later be subject to generation-skipping
transfer tax. You
must list these gifts in chronological order.
Gifts made by spouse —complete only if you are splitting gifts
with your spouse and he/she also made gifts.
A
Item
number
B
• Donee’s name and address
• Relationship to donor (if any)
• Description of gift
• If the gift was of securities, give CUSIP no.
• If closely held entity, give EIN
C
2632(c)
election
D
Donor’s adjusted
basis of gift
E
Date
of gift
F
Value at
date of gift
G
For split
gifts, enter
1/2 of
column F
H
Net transfer
(subtract
col. G from
col. F)
• If closely held entity, give EIN
C
2632(c)
election
D
Donor’s adjusted
basis of gift
E
Date
of gift
F
Value at
date of gift
G
For split
gifts, enter
1/2 of
column F
H
Net transfer
(subtract
col. G from
col. F)
Total of Part 3. Add amounts from Part 3, column H . . . . . . . . .
. . . . . . . . . . . . .
(If more space is needed, attach additional statements.) Form
709 (2013)
Form 709 (2013) Page 3
Part 4—Taxable Gift Reconciliation
1 Total value of gifts of donor. Add totals from column H of
Parts 1, 2, and 3 . . . . . . . . . . 1
2 Total annual exclusions for gifts listed on line 1 (see
instructions) . . . . . . . . . . . . . 2
3 Total included amount of gifts. Subtract line 2 from line 1 . . .
. . . . . . . . . . . . 3
Deductions (see instructions)
4 Gifts of interests to spouse for which a marital deduction will
be claimed, based
on item numbers of Schedule A . . 4
5 Exclusions attributable to gifts on line 4 . . . . . . . . . . . . 5
6 Marital deduction. Subtract line 5 from line 4 . . . . . . . . . . . 6
7 Charitable deduction, based on item nos. less exclusions . 7
8 Total deductions. Add lines 6 and 7 . . . . . . . . . . . . . . . . . . .
. . 8
9 Subtract line 8 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . 9
10 Generation-skipping transfer taxes payable with this Form
709 (from Schedule D, Part 3, col. H, Total) . . 10
11 Taxable gifts. Add lines 9 and 10. Enter here and on page 1,
Part 2—Tax Computation, line 1 . . . . 11
. . . . . . . . . . . . .
(If more space is needed, attach additional statements.) Form
709 (2013)
Form 709 (2013) Page 3
Part 4—Taxable Gift Reconciliation
1 Total value of gifts of donor. Add totals from column H of
Parts 1, 2, and 3 . . . . . . . . . . 1
2 Total annual exclusions for gifts listed on line 1 (see
instructions) . . . . . . . . . . . . . 2
3 Total included amount of gifts. Subtract line 2 from line 1 . . .
. . . . . . . . . . . . 3
Deductions (see instructions)
4 Gifts of interests to spouse for which a marital deduction will
be claimed, based
on item numbers of Schedule A . . 4
5 Exclusions attributable to gifts on line 4 . . . . . . . . . . . . 5
6 Marital deduction. Subtract line 5 from line 4 . . . . . . . . . . . 6
7 Charitable deduction, based on item nos. less exclusions . 7
8 Total deductions. Add lines 6 and 7 . . . . . . . . . . . . . . . . . . .
. . 8
9 Subtract line 8 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . 9
10 Generation-skipping transfer taxes payable with this Form
709 (from Schedule D, Part 3, col. H, Total) . . 10
11 Taxable gifts. Add lines 9 and 10. Enter here and on page 1,
Part 2—Tax Computation, line 1 . . . . 11
Terminable Interest (QTIP) Marital Deduction. (see instructions
for Schedule A, Part 4, line 4)
If a trust (or other property) meets the requirements of qualified
terminable interest property under section 2523(f), and:
a. The trust (or other property) is listed on Schedule A, and
b. The value of the trust (or other property) is entered in whole
or in part as a deduction on Schedule A, Part 4, line 4,
then the donor shall be deemed to have made an election to have
such trust (or other property) treated as qualified terminable
interest property under
section 2523(f).
If less than the entire value of the trust (or other property) that
the donor has included in Parts 1 and 3 of Schedule A is entered
as a deduction on line
4, the donor shall be considered to have made an election only
as to a fraction of the trust (or other property). The numerator
of this fraction is equal to
the amount of the trust (or other property) deducted on Schedule
A, Part 4, line 6. The denominator is equal to the total value of
the trust (or other
property) listed in Parts 1 and 3 of Schedule A.
If you make the QTIP election, the terminable interest property
involved will be included in your spouse’s gross estate upon his
or her death (section
2044). See instructions for line 4 of Schedule A. If your spouse
disposes (by gift or otherwise) of all or part of the qualifying
life income interest, he or
she will be considered to have made a transfer of the entire
property that is subject to the gift tax. See Transfer of Certain
Life Estates Received From
Spouse in the instructions.
for Schedule A, Part 4, line 4)
If a trust (or other property) meets the requirements of qualified
terminable interest property under section 2523(f), and:
a. The trust (or other property) is listed on Schedule A, and
b. The value of the trust (or other property) is entered in whole
or in part as a deduction on Schedule A, Part 4, line 4,
then the donor shall be deemed to have made an election to have
such trust (or other property) treated as qualified terminable
interest property under
section 2523(f).
If less than the entire value of the trust (or other property) that
the donor has included in Parts 1 and 3 of Schedule A is entered
as a deduction on line
4, the donor shall be considered to have made an election only
as to a fraction of the trust (or other property). The numerator
of this fraction is equal to
the amount of the trust (or other property) deducted on Schedule
A, Part 4, line 6. The denominator is equal to the total value of
the trust (or other
property) listed in Parts 1 and 3 of Schedule A.
If you make the QTIP election, the terminable interest property
involved will be included in your spouse’s gross estate upon his
or her death (section
2044). See instructions for line 4 of Schedule A. If your spouse
disposes (by gift or otherwise) of all or part of the qualifying
life income interest, he or
she will be considered to have made a transfer of the entire
property that is subject to the gift tax. See Transfer of Certain
Life Estates Received From
Spouse in the instructions.
12 Election Out of QTIP Treatment of Annuities
Check here if you elect under section 2523(f)(6) not to treat as
qualified terminable interest property any joint and survivor
annuities that are
reported on Schedule A and would otherwise be treated as
qualified terminable interest property under section 2523(f). See
instructions. Enter the
item numbers from Schedule A for the annuities for which you
are making this election
SCHEDULE B Gifts From Prior Periods
If you answered “Yes,” on line 11a of page 1, Part 1, see the
instructions for completing Schedule B. If you answered “No,”
skip to the
Tax Computation on page 1 (or Schedules C or D, if
applicable). Complete Schedule A before beginning Schedule B.
See instructions
for recalculation of the column C amounts. Attach calculations.
A
Calendar year or
calendar quarter
(see instructions)
B
Internal Revenue office
where prior return was filed
C
Amount of applicable
credit (unified credit)
against gift tax
for periods after
Check here if you elect under section 2523(f)(6) not to treat as
qualified terminable interest property any joint and survivor
annuities that are
reported on Schedule A and would otherwise be treated as
qualified terminable interest property under section 2523(f). See
instructions. Enter the
item numbers from Schedule A for the annuities for which you
are making this election
SCHEDULE B Gifts From Prior Periods
If you answered “Yes,” on line 11a of page 1, Part 1, see the
instructions for completing Schedule B. If you answered “No,”
skip to the
Tax Computation on page 1 (or Schedules C or D, if
applicable). Complete Schedule A before beginning Schedule B.
See instructions
for recalculation of the column C amounts. Attach calculations.
A
Calendar year or
calendar quarter
(see instructions)
B
Internal Revenue office
where prior return was filed
C
Amount of applicable
credit (unified credit)
against gift tax
for periods after
December 31, 1976
D
Amount of specific
exemption for prior
periods ending before
January 1, 1977
E
Amount of
taxable gifts
1 Totals for prior periods . . . . . . . . . . . . 1
2 Amount, if any, by which total specific exemption, line 1,
column D is more than $30,000 . . . . . . 2
3 Total amount of taxable gifts for prior periods. Add amount
on line 1, column E and amount, if any, on line 2.
Enter here and on page 1, Part 2—Tax Computation, line 2 . . . .
. . . . . . . . . . . 3
(If more space is needed, attach additional statements.) Form
709 (2013)
Form 709 (2013) Page 4
SCHEDULE D Com putation of Generation-Skipping Transfer
Tax
Note. Inter vivos direct skips that are completely excluded by
the GST exemption must still be fully reported (including value
D
Amount of specific
exemption for prior
periods ending before
January 1, 1977
E
Amount of
taxable gifts
1 Totals for prior periods . . . . . . . . . . . . 1
2 Amount, if any, by which total specific exemption, line 1,
column D is more than $30,000 . . . . . . 2
3 Total amount of taxable gifts for prior periods. Add amount
on line 1, column E and amount, if any, on line 2.
Enter here and on page 1, Part 2—Tax Computation, line 2 . . . .
. . . . . . . . . . . 3
(If more space is needed, attach additional statements.) Form
709 (2013)
Form 709 (2013) Page 4
SCHEDULE D Com putation of Generation-Skipping Transfer
Tax
Note. Inter vivos direct skips that are completely excluded by
the GST exemption must still be fully reported (including value
and
exemptions claimed) on Schedule D.
Part 1—Generation-Skipping Transfers
Gifts made by spouse (for gift splitting only)
A
Item No.
(from Schedule A,
Part 2, col. A)
B
Value (from Schedule A,
Part 2, col. H)
C
Nontaxable
Portion of Transfer
D
Net Transfer (subtract
col. C from col. B)
(If more space is needed, attach additional statements.) Form
709 (2013)
SCHEDULE C Deceased Spousal Unused Exclusion (DSUE)
Amount
Provide the following information to determine the DSUE
amount and applicable credit received from prior spouses.
exemptions claimed) on Schedule D.
Part 1—Generation-Skipping Transfers
Gifts made by spouse (for gift splitting only)
A
Item No.
(from Schedule A,
Part 2, col. A)
B
Value (from Schedule A,
Part 2, col. H)
C
Nontaxable
Portion of Transfer
D
Net Transfer (subtract
col. C from col. B)
(If more space is needed, attach additional statements.) Form
709 (2013)
SCHEDULE C Deceased Spousal Unused Exclusion (DSUE)
Amount
Provide the following information to determine the DSUE
amount and applicable credit received from prior spouses.
Complete Schedule A
before beginning Schedule C.
A
Name of Deceased Spouse (dates of death after
December 31, 2010 only)
B
Date of Death
C
Portability Election
Made?
Yes No
D
If “Yes,” DSUE
Amount Received
from Spouse
E
DSUE Amount Applied
by Donor to Lifetime
Gifts (list current and
prior gifts)
F
Date of Gift(s)
(enter as mm/dd/yy
before beginning Schedule C.
A
Name of Deceased Spouse (dates of death after
December 31, 2010 only)
B
Date of Death
C
Portability Election
Made?
Yes No
D
If “Yes,” DSUE
Amount Received
from Spouse
E
DSUE Amount Applied
by Donor to Lifetime
Gifts (list current and
prior gifts)
F
Date of Gift(s)
(enter as mm/dd/yy
for Part 1 and as
yyyy for Part 2)
Part 1—DSUE RECEIVED FROM LAST DECEASED SPOUSE
Part 2—DSUE RECEIVED FROM PREDECEASED SPOUSE(S)
TOTAL (for all DSUE amounts applied for Part 1 and Part 2)
1 Donor’s basic exclusion amount (see instructions) . . . . . . . . .
. . . . . . . . 1
2 Total from column E, Parts 1 and 2 . . . . . . . . . . . . . . . . . . . .
. . 2
3 Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
4 Applicable credit on amount in line 3 (See Table for
Computing Gift Tax in the instructions). Enter here and
on line 7, Part 2—Tax Computation . . . . . . . . . . . . . . . . . . . . .
4
Form 709 (2013) Page 5
Part 2—GST Exemption Reconciliation (Section 2631) and
Section 2652(a)(3) Election
Check here if you are making a section 2652(a)(3) (special
QTIP) election (see instructions)
Enter the item numbers from Schedule A of the gifts for which
you are making this election
1 Maximum allowable exemption (see instructions) . . . . . . . . .
. . . . . . . . . . 1
2 Total exemption used for periods before filing this return . . .
. . . . . . . . . . . . . . 2
3 Exemption available for this return. Subtract line 2 from line
yyyy for Part 2)
Part 1—DSUE RECEIVED FROM LAST DECEASED SPOUSE
Part 2—DSUE RECEIVED FROM PREDECEASED SPOUSE(S)
TOTAL (for all DSUE amounts applied for Part 1 and Part 2)
1 Donor’s basic exclusion amount (see instructions) . . . . . . . . .
. . . . . . . . 1
2 Total from column E, Parts 1 and 2 . . . . . . . . . . . . . . . . . . . .
. . 2
3 Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
4 Applicable credit on amount in line 3 (See Table for
Computing Gift Tax in the instructions). Enter here and
on line 7, Part 2—Tax Computation . . . . . . . . . . . . . . . . . . . . .
4
Form 709 (2013) Page 5
Part 2—GST Exemption Reconciliation (Section 2631) and
Section 2652(a)(3) Election
Check here if you are making a section 2652(a)(3) (special
QTIP) election (see instructions)
Enter the item numbers from Schedule A of the gifts for which
you are making this election
1 Maximum allowable exemption (see instructions) . . . . . . . . .
. . . . . . . . . . 1
2 Total exemption used for periods before filing this return . . .
. . . . . . . . . . . . . . 2
3 Exemption available for this return. Subtract line 2 from line
1 . . . . . . . . . . . . . . . . 3
4 Exemption claimed on this return from Part 3, column C total,
below . . . . . . . . . . . . . . 4
5 Automatic allocation of exemption to transfers reported on
Schedule A, Part 3 (see instructions) . . . . . . 5
6 Exemption allocated to transfers not shown on line 4 or 5,
above. You must attach a “Notice of Allocation.”
(see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
7 Add lines 4, 5, and 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
8 Exemption available for future transfers. Subtract line 7 from
line 3 . . . . . . . . . . . . . . 8
Part 3—Tax Computation
Gifts made by spouse (for gift splitting only)
A
Item No.
(from Schedule
D, Part 1)
B
Net Transfer
(from Schedule D,
Part 1, col. D)
C
GST Exemption
Allocated
4 Exemption claimed on this return from Part 3, column C total,
below . . . . . . . . . . . . . . 4
5 Automatic allocation of exemption to transfers reported on
Schedule A, Part 3 (see instructions) . . . . . . 5
6 Exemption allocated to transfers not shown on line 4 or 5,
above. You must attach a “Notice of Allocation.”
(see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
7 Add lines 4, 5, and 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
8 Exemption available for future transfers. Subtract line 7 from
line 3 . . . . . . . . . . . . . . 8
Part 3—Tax Computation
Gifts made by spouse (for gift splitting only)
A
Item No.
(from Schedule
D, Part 1)
B
Net Transfer
(from Schedule D,
Part 1, col. D)
C
GST Exemption
Allocated
D
Divide col. C
by col. B
E
Inclusion Ratio
(Subtract col. D
from 1.000)
F
Maximum Estate
Tax Rate
G
Applicable Rate
(multiply col. E
by col. F)
H
Generation-Skipping
Transfer Tax
(multiply col. B by col. G)
Total exemption claimed. Enter
here and on Part 2, line 4, above.
May not exceed Part 2, line 3,
above . . . . . . .
Total generation-skipping transfer tax. Enter here; on page 3,
Schedule A, Part 4, line 10; and on page 1, Part 2—Tax
Divide col. C
by col. B
E
Inclusion Ratio
(Subtract col. D
from 1.000)
F
Maximum Estate
Tax Rate
G
Applicable Rate
(multiply col. E
by col. F)
H
Generation-Skipping
Transfer Tax
(multiply col. B by col. G)
Total exemption claimed. Enter
here and on Part 2, line 4, above.
May not exceed Part 2, line 3,
above . . . . . . .
Total generation-skipping transfer tax. Enter here; on page 3,
Schedule A, Part 4, line 10; and on page 1, Part 2—Tax
Computation, line 16 . . . . . . . . . . . . . .
(If more space is needed, attach additional statements.) Form
709 (2013)
Form 709
Department of the Treasury
Internal Revenue Service
United States Gift (and Generation-Skipping Transfer) Tax
Return
Information about Form 709 and its separate instructions is at
www.irs.gov/form709.
(For gifts made during calendar year 2013)
See instructions.
OMB No. 1545-0020
2013
P
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(If more space is needed, attach additional statements.) Form
709 (2013)
Form 709
Department of the Treasury
Internal Revenue Service
United States Gift (and Generation-Skipping Transfer) Tax
Return
Information about Form 709 and its separate instructions is at
www.irs.gov/form709.
(For gifts made during calendar year 2013)
See instructions.
OMB No. 1545-0020
2013
P
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1
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1 Donor’s first name and middle initial 2 Donor’s last name 3
Donor’s social security number
4 Address (number, street, and apartment number) 5 Legal
residence (domicile)
6 City or town, state or province, country, and ZIP or foreign
postal code 7 Citizenship (see instructions)
8 If the donor died during the year, check here and enter date of
death , . Yes No
9 If you extended the time to file this Form 709, check here
10 Enter the total number of donees listed on Schedule A. Count
each person only once.
11 a Have you (the donor) previously filed a Form 709 (or 709-
A) for any other year? If "No," skip line 11b . . . . . . .
b Has your address changed since you last filed Form 709 (or
709-A)? . . . . . . . . . . . . . . . .
l I
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fo
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1 Donor’s first name and middle initial 2 Donor’s last name 3
Donor’s social security number
4 Address (number, street, and apartment number) 5 Legal
residence (domicile)
6 City or town, state or province, country, and ZIP or foreign
postal code 7 Citizenship (see instructions)
8 If the donor died during the year, check here and enter date of
death , . Yes No
9 If you extended the time to file this Form 709, check here
10 Enter the total number of donees listed on Schedule A. Count
each person only once.
11 a Have you (the donor) previously filed a Form 709 (or 709-
A) for any other year? If "No," skip line 11b . . . . . . .
b Has your address changed since you last filed Form 709 (or
709-A)? . . . . . . . . . . . . . . . .
12 Gifts by husband or wife to third parties. Do you consent to
have the gifts (including generation-skipping transfers) made
by you and by your spouse to third parties during the calendar
year considered as made one-half by each of you? (see
instructions.) (If the answer is “Yes,” the following information
must be furnished and your spouse must sign the consent
shown below. If the answer is “No,” skip lines 13–18.) . . . . . . .
. . . . . . . . . . . . .
13 Name of consenting spouse 14 SSN
15 Were you married to one another during the entire calendar
year? (see instructions) . . . . . . . . . . . .
16 If 15 is “No,” check whether married divorced or
widowed/deceased, and give date (see instructions)
17 Will a gift tax return for this year be filed by your spouse?
(If “Yes,” mail both returns in the same envelope.) . . . . .
18 Consent of Spouse. I consent to have the gifts (and
generation-skipping transfers) made by me and by my spouse to
third parties during the calendar year
considered as made one-half by each of us. We are both aware
of the joint and several liability for tax created by the execution
of this consent.
Consenting spouse’s signature Date
19 Have you applied a DSUE amount received from a
predeceased spouse to a gift or gifts reported on this or a
previous Form
709? If “Yes,” complete Schedule C . . . . . . . . . . . . . . . . . . . .
. . . . . .
P
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have the gifts (including generation-skipping transfers) made
by you and by your spouse to third parties during the calendar
year considered as made one-half by each of you? (see
instructions.) (If the answer is “Yes,” the following information
must be furnished and your spouse must sign the consent
shown below. If the answer is “No,” skip lines 13–18.) . . . . . . .
. . . . . . . . . . . . .
13 Name of consenting spouse 14 SSN
15 Were you married to one another during the entire calendar
year? (see instructions) . . . . . . . . . . . .
16 If 15 is “No,” check whether married divorced or
widowed/deceased, and give date (see instructions)
17 Will a gift tax return for this year be filed by your spouse?
(If “Yes,” mail both returns in the same envelope.) . . . . .
18 Consent of Spouse. I consent to have the gifts (and
generation-skipping transfers) made by me and by my spouse to
third parties during the calendar year
considered as made one-half by each of us. We are both aware
of the joint and several liability for tax created by the execution
of this consent.
Consenting spouse’s signature Date
19 Have you applied a DSUE amount received from a
predeceased spouse to a gift or gifts reported on this or a
previous Form
709? If “Yes,” complete Schedule C . . . . . . . . . . . . . . . . . . . .
. . . . . .
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1 Enter the amount from Schedule A, Part 4, line 11 . . . . . . . . .
. . . . . . 1
2 Enter the amount from Schedule B, line 3 . . . . . . . . . . . . . . .
. . 2
3 Total taxable gifts. Add lines 1 and 2 . . . . . . . . . . . . . . . . . .
. 3
4 Tax computed on amount on line 3 (see Table for Computing
Gift Tax in instructions) . . . . 4
5 Tax computed on amount on line 2 (see Table for Computing
Gift Tax in instructions) . . . . 5
6 Balance. Subtract line 5 from line 4 . . . . . . . . . . . . . . . . . . .
6
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C
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1 Enter the amount from Schedule A, Part 4, line 11 . . . . . . . . .
. . . . . . 1
2 Enter the amount from Schedule B, line 3 . . . . . . . . . . . . . . .
. . 2
3 Total taxable gifts. Add lines 1 and 2 . . . . . . . . . . . . . . . . . .
. 3
4 Tax computed on amount on line 3 (see Table for Computing
Gift Tax in instructions) . . . . 4
5 Tax computed on amount on line 2 (see Table for Computing
Gift Tax in instructions) . . . . 5
6 Balance. Subtract line 5 from line 4 . . . . . . . . . . . . . . . . . . .
6
7 Applicable credit amount. If donor has DSUE amount from
predeceased spouse(s), enter amount
from Schedule C, line 4; otherwise, see instructions . . . . . . . . .
. . . . . 7
8 Enter the applicable credit against tax allowable for all prior
periods (from Sch. B, line 1, col. C) . 8
9 Balance. Subtract line 8 from line 7. Do not enter less than
zero . . . . . . . . . . . 9
10 Enter 20% (.20) of the amount allowed as a specific
exemption for gifts made after September 8,
1976, and before January 1, 1977 (see instructions) . . . . . . . . .
. . . . . 10
11 Balance. Subtract line 10 from line 9. Do not enter less than
zero . . . . . . . . . . 11
12 Applicable credit. Enter the smaller of line 6 or line 11 . . . .
. . . . . . . . . . 12
13 Credit for foreign gift taxes (see instructions) . . . . . . . . . . .
. . . . . 13
14 Total credits. Add lines 12 and 13 . . . . . . . . . . . . . . . . . . . .
14
15 Balance. Subtract line 14 from line 6. Do not enter less than
zero . . . . . . . . . . 15
A
tt
a
c
h
c
h
predeceased spouse(s), enter amount
from Schedule C, line 4; otherwise, see instructions . . . . . . . . .
. . . . . 7
8 Enter the applicable credit against tax allowable for all prior
periods (from Sch. B, line 1, col. C) . 8
9 Balance. Subtract line 8 from line 7. Do not enter less than
zero . . . . . . . . . . . 9
10 Enter 20% (.20) of the amount allowed as a specific
exemption for gifts made after September 8,
1976, and before January 1, 1977 (see instructions) . . . . . . . . .
. . . . . 10
11 Balance. Subtract line 10 from line 9. Do not enter less than
zero . . . . . . . . . . 11
12 Applicable credit. Enter the smaller of line 6 or line 11 . . . .
. . . . . . . . . . 12
13 Credit for foreign gift taxes (see instructions) . . . . . . . . . . .
. . . . . 13
14 Total credits. Add lines 12 and 13 . . . . . . . . . . . . . . . . . . . .
14
15 Balance. Subtract line 14 from line 6. Do not enter less than
zero . . . . . . . . . . 15
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. 16 Generation-skipping transfer taxes (from Schedule D, Part
3, col. H, Total) . . . . . . . . 16
17 Total tax. Add lines 15 and 16 . . . . . . . . . . . . . . . . . . . . .
17
18 Gift and generation-skipping transfer taxes prepaid with
extension of time to file . . . . . . 18
19 If line 18 is less than line 17, enter balance due (see
instructions) . . . . . . . . . . 19
20 If line 18 is greater than line 17, enter amount to be refunded
. . . . . . . . . . . 20
c
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. 16 Generation-skipping transfer taxes (from Schedule D, Part
3, col. H, Total) . . . . . . . . 16
17 Total tax. Add lines 15 and 16 . . . . . . . . . . . . . . . . . . . . .
17
18 Gift and generation-skipping transfer taxes prepaid with
extension of time to file . . . . . . 18
19 If line 18 is less than line 17, enter balance due (see
instructions) . . . . . . . . . . 19
20 If line 18 is greater than line 17, enter amount to be refunded
. . . . . . . . . . . 20
Sign
Here
Under penalties of perjury, I declare that I have examined this
return, including any accompanying schedules and statements,
and to the best of my
knowledge and belief, it is true, correct, and complete.
Declaration of preparer (other than donor) is based on all
information of which preparer has
any knowledge.
May the IRS discuss this return
with the preparer shown below
(see instructions)? Yes No
Signature of donor Date
Paid
Preparer
Use Only
Print/Type preparer’s name Preparer’s signature Date
Check if
self-employed
PTIN
Firm’s name
Firm’s address
Firm's EIN
Phone no.
Here
Under penalties of perjury, I declare that I have examined this
return, including any accompanying schedules and statements,
and to the best of my
knowledge and belief, it is true, correct, and complete.
Declaration of preparer (other than donor) is based on all
information of which preparer has
any knowledge.
May the IRS discuss this return
with the preparer shown below
(see instructions)? Yes No
Signature of donor Date
Paid
Preparer
Use Only
Print/Type preparer’s name Preparer’s signature Date
Check if
self-employed
PTIN
Firm’s name
Firm’s address
Firm's EIN
Phone no.
For Disclosure, Privacy Act, and Paperwork Reduction Act
Notice, see the instructions for this form. Cat. No. 16783M
Form 709 (2013)
Form 709 (2013) Page 2
SCHEDULE A Computation of Taxable Gifts (Including
transfers in trust) (see instructions)
A Does the value of any item listed on Schedule A reflect any
valuation discount? If “Yes,” attach explanation . . . . . . Yes No
B Check here if you elect under section 529(c)(2)(B) to treat
any transfers made this year to a qualified tuition program as
made ratably over a
5-year period beginning this year. See instructions. Attach
explanation.
Part 1—Gifts Subject Only to Gift Tax. Gifts less political
organization, medical, and educational exclusions. (see
instructions)
Gifts made by spouse —complete only if you are splitting gifts
with your spouse and he/she also made gifts.
A
Item
number
B
• Donee’s name and address
• Relationship to donor (if any)
• Description of gift
• If the gift was of securities, give CUSIP no.
Notice, see the instructions for this form. Cat. No. 16783M
Form 709 (2013)
Form 709 (2013) Page 2
SCHEDULE A Computation of Taxable Gifts (Including
transfers in trust) (see instructions)
A Does the value of any item listed on Schedule A reflect any
valuation discount? If “Yes,” attach explanation . . . . . . Yes No
B Check here if you elect under section 529(c)(2)(B) to treat
any transfers made this year to a qualified tuition program as
made ratably over a
5-year period beginning this year. See instructions. Attach
explanation.
Part 1—Gifts Subject Only to Gift Tax. Gifts less political
organization, medical, and educational exclusions. (see
instructions)
Gifts made by spouse —complete only if you are splitting gifts
with your spouse and he/she also made gifts.
A
Item
number
B
• Donee’s name and address
• Relationship to donor (if any)
• Description of gift
• If the gift was of securities, give CUSIP no.
• If closely held entity, give EIN
C D
Donor’s adjusted
basis of gift
E
Date
of gift
F
Value at
date of gift
G
For split
gifts, enter
1/2 of
column F
H
Net transfer
(subtract
col. G from
col. F)
Total of Part 1. Add amounts from Part 1, column H . . . . . . . . .
. . . . . . . . . . . . .
Part 2—Direct Skips. Gifts that are direct skips and are subject
C D
Donor’s adjusted
basis of gift
E
Date
of gift
F
Value at
date of gift
G
For split
gifts, enter
1/2 of
column F
H
Net transfer
(subtract
col. G from
col. F)
Total of Part 1. Add amounts from Part 1, column H . . . . . . . . .
. . . . . . . . . . . . .
Part 2—Direct Skips. Gifts that are direct skips and are subject
to both gift tax and generation-skipping transfer tax. You must
list the gifts in
chronological order.
Gifts made by spouse —complete only if you are splitting gifts
with your spouse and he/she also made gifts.
A
Item
number
B
• Donee’s name and address
• Relationship to donor (if any)
• Description of gift
• If the gift was of securities, give CUSIP no.
• If closely held entity, give EIN
C
2632(b)
election
out
D
Donor’s adjusted
basis of gift
E
Date
of gift
F
Value at
list the gifts in
chronological order.
Gifts made by spouse —complete only if you are splitting gifts
with your spouse and he/she also made gifts.
A
Item
number
B
• Donee’s name and address
• Relationship to donor (if any)
• Description of gift
• If the gift was of securities, give CUSIP no.
• If closely held entity, give EIN
C
2632(b)
election
out
D
Donor’s adjusted
basis of gift
E
Date
of gift
F
Value at
date of gift
G
For split
gifts, enter
1/2 of
column F
H
Net transfer
(subtract
col. G from
col. F)
Total of Part 2. Add amounts from Part 2, column H . . . . . . . . .
. . . . . . . . . . . . .
Part 3—Indirect Skips. Gifts to trusts that are currently subject
to gift tax and may later be subject to generation-skipping
transfer tax. You
must list these gifts in chronological order.
Gifts made by spouse —complete only if you are splitting gifts
with your spouse and he/she also made gifts.
A
Item
number
B
G
For split
gifts, enter
1/2 of
column F
H
Net transfer
(subtract
col. G from
col. F)
Total of Part 2. Add amounts from Part 2, column H . . . . . . . . .
. . . . . . . . . . . . .
Part 3—Indirect Skips. Gifts to trusts that are currently subject
to gift tax and may later be subject to generation-skipping
transfer tax. You
must list these gifts in chronological order.
Gifts made by spouse —complete only if you are splitting gifts
with your spouse and he/she also made gifts.
A
Item
number
B
• Donee’s name and address
• Relationship to donor (if any)
• Description of gift
• If the gift was of securities, give CUSIP no.
• If closely held entity, give EIN
C
2632(c)
election
D
Donor’s adjusted
basis of gift
E
Date
of gift
F
Value at
date of gift
G
For split
gifts, enter
1/2 of
column F
H
Net transfer
(subtract
• Relationship to donor (if any)
• Description of gift
• If the gift was of securities, give CUSIP no.
• If closely held entity, give EIN
C
2632(c)
election
D
Donor’s adjusted
basis of gift
E
Date
of gift
F
Value at
date of gift
G
For split
gifts, enter
1/2 of
column F
H
Net transfer
(subtract
col. G from
col. F)
Total of Part 3. Add amounts from Part 3, column H . . . . . . . . .
. . . . . . . . . . . . .
(If more space is needed, attach additional statements.) Form
709 (2013)
Form 709 (2013) Page 3
Part 4—Taxable Gift Reconciliation
1 Total value of gifts of donor. Add totals from column H of
Parts 1, 2, and 3 . . . . . . . . . . 1
2 Total annual exclusions for gifts listed on line 1 (see
instructions) . . . . . . . . . . . . . 2
3 Total included amount of gifts. Subtract line 2 from line 1 . . .
. . . . . . . . . . . . 3
Deductions (see instructions)
4 Gifts of interests to spouse for which a marital deduction will
be claimed, based
on item numbers of Schedule A . . 4
5 Exclusions attributable to gifts on line 4 . . . . . . . . . . . . 5
6 Marital deduction. Subtract line 5 from line 4 . . . . . . . . . . . 6
7 Charitable deduction, based on item nos. less exclusions . 7
8 Total deductions. Add lines 6 and 7 . . . . . . . . . . . . . . . . . . .
. . 8
9 Subtract line 8 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . 9
10 Generation-skipping transfer taxes payable with this Form
709 (from Schedule D, Part 3, col. H, Total) . . 10
col. F)
Total of Part 3. Add amounts from Part 3, column H . . . . . . . . .
. . . . . . . . . . . . .
(If more space is needed, attach additional statements.) Form
709 (2013)
Form 709 (2013) Page 3
Part 4—Taxable Gift Reconciliation
1 Total value of gifts of donor. Add totals from column H of
Parts 1, 2, and 3 . . . . . . . . . . 1
2 Total annual exclusions for gifts listed on line 1 (see
instructions) . . . . . . . . . . . . . 2
3 Total included amount of gifts. Subtract line 2 from line 1 . . .
. . . . . . . . . . . . 3
Deductions (see instructions)
4 Gifts of interests to spouse for which a marital deduction will
be claimed, based
on item numbers of Schedule A . . 4
5 Exclusions attributable to gifts on line 4 . . . . . . . . . . . . 5
6 Marital deduction. Subtract line 5 from line 4 . . . . . . . . . . . 6
7 Charitable deduction, based on item nos. less exclusions . 7
8 Total deductions. Add lines 6 and 7 . . . . . . . . . . . . . . . . . . .
. . 8
9 Subtract line 8 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . 9
10 Generation-skipping transfer taxes payable with this Form
709 (from Schedule D, Part 3, col. H, Total) . . 10
11 Taxable gifts. Add lines 9 and 10. Enter here and on page 1,
Part 2—Tax Computation, line 1 . . . . 11
Terminable Interest (QTIP) Marital Deduction. (see instructions
for Schedule A, Part 4, line 4)
If a trust (or other property) meets the requirements of qualified
terminable interest property under section 2523(f), and:
a. The trust (or other property) is listed on Schedule A, and
b. The value of the trust (or other property) is entered in whole
or in part as a deduction on Schedule A, Part 4, line 4,
then the donor shall be deemed to have made an election to have
such trust (or other property) treated as qualified terminable
interest property under
section 2523(f).
If less than the entire value of the trust (or other property) that
the donor has included in Parts 1 and 3 of Schedule A is entered
as a deduction on line
4, the donor shall be considered to have made an election only
as to a fraction of the trust (or other property). The numerator
of this fraction is equal to
the amount of the trust (or other property) deducted on Schedule
A, Part 4, line 6. The denominator is equal to the total value of
the trust (or other
property) listed in Parts 1 and 3 of Schedule A.
If you make the QTIP election, the terminable interest property
involved will be included in your spouse’s gross estate upon his
or her death (section
2044). See instructions for line 4 of Schedule A. If your spouse
disposes (by gift or otherwise) of all or part of the qualifying
life income interest, he or
she will be considered to have made a transfer of the entire
property that is subject to the gift tax. See Transfer of Certain
Part 2—Tax Computation, line 1 . . . . 11
Terminable Interest (QTIP) Marital Deduction. (see instructions
for Schedule A, Part 4, line 4)
If a trust (or other property) meets the requirements of qualified
terminable interest property under section 2523(f), and:
a. The trust (or other property) is listed on Schedule A, and
b. The value of the trust (or other property) is entered in whole
or in part as a deduction on Schedule A, Part 4, line 4,
then the donor shall be deemed to have made an election to have
such trust (or other property) treated as qualified terminable
interest property under
section 2523(f).
If less than the entire value of the trust (or other property) that
the donor has included in Parts 1 and 3 of Schedule A is entered
as a deduction on line
4, the donor shall be considered to have made an election only
as to a fraction of the trust (or other property). The numerator
of this fraction is equal to
the amount of the trust (or other property) deducted on Schedule
A, Part 4, line 6. The denominator is equal to the total value of
the trust (or other
property) listed in Parts 1 and 3 of Schedule A.
If you make the QTIP election, the terminable interest property
involved will be included in your spouse’s gross estate upon his
or her death (section
2044). See instructions for line 4 of Schedule A. If your spouse
disposes (by gift or otherwise) of all or part of the qualifying
life income interest, he or
she will be considered to have made a transfer of the entire
property that is subject to the gift tax. See Transfer of Certain
Life Estates Received From
Spouse in the instructions.
12 Election Out of QTIP Treatment of Annuities
Check here if you elect under section 2523(f)(6) not to treat as
qualified terminable interest property any joint and survivor
annuities that are
reported on Schedule A and would otherwise be treated as
qualified terminable interest property under section 2523(f). See
instructions. Enter the
item numbers from Schedule A for the annuities for which you
are making this election
SCHEDULE B Gifts From Prior Periods
If you answered “Yes,” on line 11a of page 1, Part 1, see the
instructions for completing Schedule B. If you answered “No,”
skip to the
Tax Computation on page 1 (or Schedules C or D, if
applicable). Complete Schedule A before beginning Schedule B.
See instructions
for recalculation of the column C amounts. Attach calculations.
A
Calendar year or
calendar quarter
(see instructions)
B
Internal Revenue office
where prior return was filed
C
Amount of applicable
credit (unified credit)
Spouse in the instructions.
12 Election Out of QTIP Treatment of Annuities
Check here if you elect under section 2523(f)(6) not to treat as
qualified terminable interest property any joint and survivor
annuities that are
reported on Schedule A and would otherwise be treated as
qualified terminable interest property under section 2523(f). See
instructions. Enter the
item numbers from Schedule A for the annuities for which you
are making this election
SCHEDULE B Gifts From Prior Periods
If you answered “Yes,” on line 11a of page 1, Part 1, see the
instructions for completing Schedule B. If you answered “No,”
skip to the
Tax Computation on page 1 (or Schedules C or D, if
applicable). Complete Schedule A before beginning Schedule B.
See instructions
for recalculation of the column C amounts. Attach calculations.
A
Calendar year or
calendar quarter
(see instructions)
B
Internal Revenue office
where prior return was filed
C
Amount of applicable
credit (unified credit)
against gift tax
for periods after
December 31, 1976
D
Amount of specific
exemption for prior
periods ending before
January 1, 1977
E
Amount of
taxable gifts
1 Totals for prior periods . . . . . . . . . . . . 1
2 Amount, if any, by which total specific exemption, line 1,
column D is more than $30,000 . . . . . . 2
3 Total amount of taxable gifts for prior periods. Add amount
on line 1, column E and amount, if any, on line 2.
Enter here and on page 1, Part 2—Tax Computation, line 2 . . . .
. . . . . . . . . . . 3
(If more space is needed, attach additional statements.) Form
709 (2013)
Form 709 (2013) Page 4
SCHEDULE D Computation of Generation-Skipping Transfer
for periods after
December 31, 1976
D
Amount of specific
exemption for prior
periods ending before
January 1, 1977
E
Amount of
taxable gifts
1 Totals for prior periods . . . . . . . . . . . . 1
2 Amount, if any, by which total specific exemption, line 1,
column D is more than $30,000 . . . . . . 2
3 Total amount of taxable gifts for prior periods. Add amount
on line 1, column E and amount, if any, on line 2.
Enter here and on page 1, Part 2—Tax Computation, line 2 . . . .
. . . . . . . . . . . 3
(If more space is needed, attach additional statements.) Form
709 (2013)
Form 709 (2013) Page 4
SCHEDULE D Computation of Generation-Skipping Transfer
Tax
Note. Inter vivos direct skips that are completely excluded by
the GST exemption must still be fully reported (including value
and
exemptions claimed) on Schedule D.
Part 1—Generation-Skipping Transfers
Gifts made by spouse (for gift splitting only)
A
Item No.
(from Schedule A,
Part 2, col. A)
B
Value (from Schedule A,
Part 2, col. H)
C
Nontaxable
Portion of Transfer
D
Net Transfer (subtract
col. C from col. B)
(If more space is needed, attach additional statements.) Form
709 (2013)
SCHEDULE C Deceased Spousal Unused Exclusion (DSUE)
Note. Inter vivos direct skips that are completely excluded by
the GST exemption must still be fully reported (including value
and
exemptions claimed) on Schedule D.
Part 1—Generation-Skipping Transfers
Gifts made by spouse (for gift splitting only)
A
Item No.
(from Schedule A,
Part 2, col. A)
B
Value (from Schedule A,
Part 2, col. H)
C
Nontaxable
Portion of Transfer
D
Net Transfer (subtract
col. C from col. B)
(If more space is needed, attach additional statements.) Form
709 (2013)
SCHEDULE C Deceased Spousal Unused Exclusion (DSUE)
Amount
Provide the following information to determine the DSUE
amount and applicable credit received from prior spouses.
Complete Schedule A
before beginning Schedule C.
A
Name of Deceased Spouse (dates of death after
December 31, 2010 only)
B
Date of Death
C
Portability Election
Made?
Yes No
D
If “Yes,” DSUE
Amount Received
from Spouse
E
DSUE Amount Applied
by Donor to Lifetime
Gifts (list current and
prior gifts)
F
Provide the following information to determine the DSUE
amount and applicable credit received from prior spouses.
Complete Schedule A
before beginning Schedule C.
A
Name of Deceased Spouse (dates of death after
December 31, 2010 only)
B
Date of Death
C
Portability Election
Made?
Yes No
D
If “Yes,” DSUE
Amount Received
from Spouse
E
DSUE Amount Applied
by Donor to Lifetime
Gifts (list current and
prior gifts)
F
Date of Gift(s)
(enter as mm/dd/yy
for Part 1 and as
yyyy for Part 2)
Part 1—DSUE RECEIVED FROM LAST DECE ASED SPOUSE
Part 2—DSUE RECEIVED FROM PREDECEASED SPOUSE(S)
TOTAL (for all DSUE amounts applied for Part 1 and Part 2)
1 Donor’s basic exclusion amount (see instructions) . . . . . . . . .
. . . . . . . . 1
2 Total from column E, Parts 1 and 2 . . . . . . . . . . . . . . . . . . . .
. . 2
3 Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
4 Applicable credit on amount in line 3 (See Table for
Computing Gift Tax in the instructions). Enter here and
on line 7, Part 2—Tax Computation . . . . . . . . . . . . . . . . . . . . .
4
Form 709 (2013) Page 5
Part 2—GST Exemption Reconciliation (Section 2631) and
Section 2652(a)(3) Election
Check here if you are making a section 2652(a)(3) (special
QTIP) election (see instructions)
Enter the item numbers from Schedule A of the gifts for which
you are making this election
1 Maximum allowable exemption (see instructions) . . . . . . . . .
. . . . . . . . . . 1
2 Total exemption used for periods before filing this return . . .
(enter as mm/dd/yy
for Part 1 and as
yyyy for Part 2)
Part 1—DSUE RECEIVED FROM LAST DECE ASED SPOUSE
Part 2—DSUE RECEIVED FROM PREDECEASED SPOUSE(S)
TOTAL (for all DSUE amounts applied for Part 1 and Part 2)
1 Donor’s basic exclusion amount (see instructions) . . . . . . . . .
. . . . . . . . 1
2 Total from column E, Parts 1 and 2 . . . . . . . . . . . . . . . . . . . .
. . 2
3 Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
4 Applicable credit on amount in line 3 (See Table for
Computing Gift Tax in the instructions). Enter here and
on line 7, Part 2—Tax Computation . . . . . . . . . . . . . . . . . . . . .
4
Form 709 (2013) Page 5
Part 2—GST Exemption Reconciliation (Section 2631) and
Section 2652(a)(3) Election
Check here if you are making a section 2652(a)(3) (special
QTIP) election (see instructions)
Enter the item numbers from Schedule A of the gifts for which
you are making this election
1 Maximum allowable exemption (see instructions) . . . . . . . . .
. . . . . . . . . . 1
2 Total exemption used for periods before filing this return . . .
. . . . . . . . . . . . . . 2
3 Exemption available for this return. Subtract line 2 from line
1 . . . . . . . . . . . . . . . . 3
4 Exemption claimed on this return from Part 3, column C total,
below . . . . . . . . . . . . . . 4
5 Automatic allocation of exemption to transfers reported on
Schedule A, Part 3 (see instructions) . . . . . . 5
6 Exemption allocated to transfers not shown on line 4 or 5,
above. You must attach a “Notice of Allocation.”
(see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
7 Add lines 4, 5, and 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
8 Exemption available for future transfers. Subtract line 7 from
line 3 . . . . . . . . . . . . . . 8
Part 3—Tax Computation
Gifts made by spouse (for gift splitting only)
A
Item No.
(from Schedule
D, Part 1)
B
Net Transfer
(from Schedule D,
Part 1, col. D)
C
3 Exemption available for this return. Subtract line 2 from line
1 . . . . . . . . . . . . . . . . 3
4 Exemption claimed on this return from Part 3, column C total,
below . . . . . . . . . . . . . . 4
5 Automatic allocation of exemption to transfers reported on
Schedule A, Part 3 (see instructions) . . . . . . 5
6 Exemption allocated to transfers not shown on line 4 or 5,
above. You must attach a “Notice of Allocation.”
(see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
7 Add lines 4, 5, and 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
8 Exemption available for future transfers. Subtract line 7 from
line 3 . . . . . . . . . . . . . . 8
Part 3—Tax Computation
Gifts made by spouse (for gift splitting only)
A
Item No.
(from Schedule
D, Part 1)
B
Net Transfer
(from Schedule D,
Part 1, col. D)
C
GST Exemption
Allocated
D
Divide col. C
by col. B
E
Inclusion Ratio
(Subtract col. D
from 1.000)
F
Maximum Estate
Tax Rate
G
Applicable Rate
(multiply col. E
by col. F)
H
Generation-Skipping
Transfer Tax
(multiply col. B by col. G)
Total exemption claimed. Enter
here and on Part 2, line 4, above.
May not exceed Part 2, line 3,
above . . . . . . .
Allocated
D
Divide col. C
by col. B
E
Inclusion Ratio
(Subtract col. D
from 1.000)
F
Maximum Estate
Tax Rate
G
Applicable Rate
(multiply col. E
by col. F)
H
Generation-Skipping
Transfer Tax
(multiply col. B by col. G)
Total exemption claimed. Enter
here and on Part 2, line 4, above.
May not exceed Part 2, line 3,
above . . . . . . .
Total generation-skipping transfer tax. Enter here; on page 3,
Schedule A, Part 4, line 10; and on page 1, Part 2—Tax
Computation, line 16 . . . . . . . . . . . . . .
(If more space is needed, attach additional statements.) Form
709 (2013)
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Problem
This is the first of three tax returns that you will be preparing in
this course. This first return will assess your ability to properly
handle taxable transfers using the 2513 election to split the
gifts. If tax software came with your text purchase, or if you
have alternate tax software, you may use it to complete this
Schedule A, Part 4, line 10; and on page 1, Part 2—Tax
Computation, line 16 . . . . . . . . . . . . . .
(If more space is needed, attach additional statements.) Form
709 (2013)
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Problem
This is the first of three tax returns that you will be preparing in
this course. This first return will assess your ability to properly
handle taxable transfers using the 2513 election to split the
gifts. If tax software came with your text purchase, or if you
have alternate tax software, you may use it to complete this
assignment. If not, a fill-in 2013 709 PDF form can be found in
Doc Sharing. Remember, you will be submitting (2) 709 forms,
one for James A. Polk and one for Ella R. Polk. If you use the
fill-in form in Doc Sharing, two forms are already included.
All submissions for this assignment MUST be in PDF format. If
you choose to use tax software, do not submit the tax software
file. Save the tax return in PDF format, with your last name in
the filename, and submit the PDF file.
#1.
James A. And Ella. R. Polk ages 70 and 65 are retired
physicians who live at 13319 Taylorcrest street, Houston, Texas
77079. Their three adult children (Benjamin Polk, Michael Polk,
and Olivia Turner) are mature and responsible persons. The
Polks have heard that the Obama administration has proposed
lowering the Federal gift tax exclusion from $5.25 million to $3
million. Although this change may not occur, the Polks feel
they should take advantage of the more generous exclusion
available under existing law. Thus, in 2013, the Polks make
transfers of many of their high value investments. These and
other gifts made 2013 are summarized below.
Asset Transfer
Donor
James
Ella
Condominium located in Conroe (TX) acquired in 1999, cost
$1.2 million, to Benjamin, Michael, and Olivia as equal tenants
in common.
$1,800,000
$1,800,000
Office building, located in Round Rock (TX) built in 2001, cost
$1.8 million, to Benjamin, Michael, and Olivia as equal tenants
in common
$2,200,000
Doc Sharing. Remember, you will be submitting (2) 709 forms,
one for James A. Polk and one for Ella R. Polk. If you use the
fill-in form in Doc Sharing, two forms are already included.
All submissions for this assignment MUST be in PDF format. If
you choose to use tax software, do not submit the tax software
file. Save the tax return in PDF format, with your last name in
the filename, and submit the PDF file.
#1.
James A. And Ella. R. Polk ages 70 and 65 are retired
physicians who live at 13319 Taylorcrest street, Houston, Texas
77079. Their three adult children (Benjamin Polk, Michael Polk,
and Olivia Turner) are mature and responsible persons. The
Polks have heard that the Obama administration has proposed
lowering the Federal gift tax exclusion from $5.25 million to $3
million. Although this change may not occur, the Polks feel
they should take advantage of the more generous exclusion
available under existing law. Thus, in 2013, the Polks make
transfers of many of their high value investments. These and
other gifts made 2013 are summarized below.
Asset Transfer
Donor
James
Ella
Condominium located in Conroe (TX) acquired in 1999, cost
$1.2 million, to Benjamin, Michael, and Olivia as equal tenants
in common.
$1,800,000
$1,800,000
Office building, located in Round Rock (TX) built in 2001, cost
$1.8 million, to Benjamin, Michael, and Olivia as equal tenants
in common
$2,200,000
$2,200,000
Vacation ranch in Bandera (TX) inherited by James from his
father in 1996, value then $900000, to Benjamin, Michael, and
Olivia as equal joint tenants with rights of survivorship.
$2,400,00
-0-
Ella used her separate property to reimburse her father (Alan
Roberts) for his heart bypass operation
$ -0-
$82,000
Paid for daughter’s (Olivia’s) wedding to John Turner
$20,000
$20,000
James used his separate property to purchase a new automobile
(BMW) as a graduation present ( from medical school) for his
favorite niece (Carol Polk)
$42,000
-0-
Prepare 2013 gift tax returns (Form 709) for both of the Polks.
A§ 2513 election to split gifts is made. The Polks have made no
taxable gifts in prior years. Relevant Social Security numbers
are 123-45-6789 (James) and 123-45-6788 (Ella).
#2.
Natalie Bryan, a widow who lives at 425 Flathead Way,
Kalispell, Montana 59901, has three adult children (Daniel
Bryan, Amanda Green, and Samantha Cruz). During 2013,
Natalie makes the following gifts to the children.
To Daniel: Office building in Helena acquired in 2001 at a cost
of $800000, current value $1.8 million.
To Amanda: Rental cabin in Whitefisjh inherited in 1999 (value
$900,00) from her father, current value $1.9 million.
To Samantha: Vacation lodge on Flathead Lake acquired in
1995 at a cost of $800,000, current value $1.7 million.
Vacation ranch in Bandera (TX) inherited by James from his
father in 1996, value then $900000, to Benjamin, Michael, and
Olivia as equal joint tenants with rights of survivorship.
$2,400,00
-0-
Ella used her separate property to reimburse her father (Alan
Roberts) for his heart bypass operation
$ -0-
$82,000
Paid for daughter’s (Olivia’s) wedding to John Turner
$20,000
$20,000
James used his separate property to purchase a new automobile
(BMW) as a graduation present ( from medical school) for his
favorite niece (Carol Polk)
$42,000
-0-
Prepare 2013 gift tax returns (Form 709) for both of the Polks.
A§ 2513 election to split gifts is made. The Polks have made no
taxable gifts in prior years. Relevant Social Security numbers
are 123-45-6789 (James) and 123-45-6788 (Ella).
#2.
Natalie Bryan, a widow who lives at 425 Flathead Way,
Kalispell, Montana 59901, has three adult children (Daniel
Bryan, Amanda Green, and Samantha Cruz). During 2013,
Natalie makes the following gifts to the children.
To Daniel: Office building in Helena acquired in 2001 at a cost
of $800000, current value $1.8 million.
To Amanda: Rental cabin in Whitefisjh inherited in 1999 (value
$900,00) from her father, current value $1.9 million.
To Samantha: Vacation lodge on Flathead Lake acquired in
1995 at a cost of $800,000, current value $1.7 million.
Prepare a 2013 gifts tax return ( Form 709) for Natalie (SSN
123-45-6787). Natalie made no taxable gifts in prior years.
#3.
Harriet C. Harper, age 74, died as a result of an automobile
accident on June 6, 2013. At the time of her death, Harriet lived
at 1520 Marlin Drive, Clearwater, FL, 33758. She was
predeceased by her husband. John W. Harper, who died in 2001.
Harriet is survived by her two adult children. Travis Harper
and Hannah Baker. Information regarding Harriet’s estate is
summarized below.
· John’s will established a marital deduction trust with $1
million of assets. Under the terms of the trust, Harriet received
a life estate with the remainder passing to their children. (i.e.,
Travis and Hannah). To obtain a marital deduction for John’s
estate, his executor made a QTIP election. On June 6, 2013, the
trust had a value of $2 million. During 2013, the trust assets
are distributed to Travis and Hannah.
· Harriet owned three insurance policies with Falcon
Assurance Company-one on her life and one on the life of each
of her children. All policies have a maturity value of $100,00;
all name Harriet or her estate as the beneficiary. As of June 6,
2013, the policies on Travis and Hannah each had a value of
$40,000.
· A tract of undeveloped land in Pinellas County (FL) was
purchased by Harriet as an investment in 2002 for $300,000. To
help finance the purchase, Harriet obtained mortgage funds
from Tampa Savings and Loan. As of June 6, 2013, the land was
worth $900,000, and Harriet owed $100,000 on the mortgage.
· Rental beach cottages in Destin (FL) were inherited from John
and worth $1 million on June 6, 2013. The cottages had value of
$600,000 when John died; his original cost is unknown.
· A family vacation lodge in Union (SC) was held as joint
tenants with right of survivorship in the names of Harriet
Harper, Travis Harper, and Hannah Baker. The property was
purchased in 2002 for $400,000; $200,000 was provided by
123-45-6787). Natalie made no taxable gifts in prior years.
#3.
Harriet C. Harper, age 74, died as a result of an automobile
accident on June 6, 2013. At the time of her death, Harriet lived
at 1520 Marlin Drive, Clearwater, FL, 33758. She was
predeceased by her husband. John W. Harper, who died in 2001.
Harriet is survived by her two adult children. Travis Harper
and Hannah Baker. Information regarding Harriet’s estate is
summarized below.
· John’s will established a marital deduction trust with $1
million of assets. Under the terms of the trust, Harriet received
a life estate with the remainder passing to their children. (i.e.,
Travis and Hannah). To obtain a marital deduction for John’s
estate, his executor made a QTIP election. On June 6, 2013, the
trust had a value of $2 million. During 2013, the trust assets
are distributed to Travis and Hannah.
· Harriet owned three insurance policies with Falcon
Assurance Company-one on her life and one on the life of each
of her children. All policies have a maturity value of $100,00;
all name Harriet or her estate as the beneficiary. As of June 6,
2013, the policies on Travis and Hannah each had a value of
$40,000.
· A tract of undeveloped land in Pinellas County (FL) was
purchased by Harriet as an investment in 2002 for $300,000. To
help finance the purchase, Harriet obtained mortgage funds
from Tampa Savings and Loan. As of June 6, 2013, the land was
worth $900,000, and Harriet owed $100,000 on the mortgage.
· Rental beach cottages in Destin (FL) were inherited from John
and worth $1 million on June 6, 2013. The cottages had value of
$600,000 when John died; his original cost is unknown.
· A family vacation lodge in Union (SC) was held as joint
tenants with right of survivorship in the names of Harriet
Harper, Travis Harper, and Hannah Baker. The property was
purchased in 2002 for $400,000; $200,000 was provided by
Harriet and $100,000 was furnished by each of her children. On
June 6, 2013, the lodge was worth $1 million.
· Harriet’s Marlin Drive residence is owned by her. It had a
value of $500,000 on June 6, 2013.
· The accident that fatally injured Harriet was caused by the
delivery truck of a national soft drink bottling company. Not
only was the truck in disrepair, but the driver was charged with
DUI. To avoid the adverse publicity of lawsuit involving the
obvious gross negligence, the corporate office offered to settle
any claims. After careful deliberation, Harriet’s co-executors
(Travis and Hannah) signed a release. In return, the estate
received $400,000 in cash plus payment of all medical
expenses. Of the medical expenses, the doctors and hospital
were paid directly by the building company. The settlement was
received by the estate before it was closed and the Form 706
filed.
· Other assets owned by Harriet as of June 6, 2013 included:
Checking account at Dunedin State Bank
$ 17,500
State of Georgia bonds (interest accrued to date of death)
105,000
Personal and household effects
60,000
Federal income tax refund receivable (for tax year 2012)
2,000
· Liabilities and expenses in connection with the administration
of the estate include:
Harriet’s credit card debt and household bills
(e.g., utilities, gardener)
$13,000
Federal income tax ( January 1, 2013, to June 6, 2013)
27,000
Funeral expenses
8,000
June 6, 2013, the lodge was worth $1 million.
· Harriet’s Marlin Drive residence is owned by her. It had a
value of $500,000 on June 6, 2013.
· The accident that fatally injured Harriet was caused by the
delivery truck of a national soft drink bottling company. Not
only was the truck in disrepair, but the driver was charged with
DUI. To avoid the adverse publicity of lawsuit involving the
obvious gross negligence, the corporate office offered to settle
any claims. After careful deliberation, Harriet’s co-executors
(Travis and Hannah) signed a release. In return, the estate
received $400,000 in cash plus payment of all medical
expenses. Of the medical expenses, the doctors and hospital
were paid directly by the building company. The settlement was
received by the estate before it was closed and the Form 706
filed.
· Other assets owned by Harriet as of June 6, 2013 included:
Checking account at Dunedin State Bank
$ 17,500
State of Georgia bonds (interest accrued to date of death)
105,000
Personal and household effects
60,000
Federal income tax refund receivable (for tax year 2012)
2,000
· Liabilities and expenses in connection with the administration
of the estate include:
Harriet’s credit card debt and household bills
(e.g., utilities, gardener)
$13,000
Federal income tax ( January 1, 2013, to June 6, 2013)
27,000
Funeral expenses
8,000
Attorney’s fees
12,000
Accounting fees
10,000
Appraisal fees and court costs
6,000
Unpaid pledge to Clearwater First Methodist Church Building
Fund ( paid by the estate during its administration)
20,000
· Because Travis and Hannah had experience in handling their
father’s estate. Harriet’s will designated them as co-executors
of her estate. The probate of the Estate of Harriet C. harper is
completed December 16, 2013. Travis and Hannah are the sole
heirs.
Prepare an estate tax return (Form 706) for Harriet, In this
regard, make the following assumptions.
· Disregard any request for information that is not available
· Some deductions require a choice between the income and
estate taxes (Form 706 or form 1041) and cannot be deducted
twice . Resolve all choices in favor of Form 706.
· Harriet had made no taxable gifts in prior years.
· Relevant SSNs
Name
SSN
Harriet Harper
123-45-6781
Travis Harper
123-45-6782
Hannah Baker
123-45-6783
12,000
Accounting fees
10,000
Appraisal fees and court costs
6,000
Unpaid pledge to Clearwater First Methodist Church Building
Fund ( paid by the estate during its administration)
20,000
· Because Travis and Hannah had experience in handling their
father’s estate. Harriet’s will designated them as co-executors
of her estate. The probate of the Estate of Harriet C. harper is
completed December 16, 2013. Travis and Hannah are the sole
heirs.
Prepare an estate tax return (Form 706) for Harriet, In this
regard, make the following assumptions.
· Disregard any request for information that is not available
· Some deductions require a choice between the income and
estate taxes (Form 706 or form 1041) and cannot be deducted
twice . Resolve all choices in favor of Form 706.
· Harriet had made no taxable gifts in prior years.
· Relevant SSNs
Name
SSN
Harriet Harper
123-45-6781
Travis Harper
123-45-6782
Hannah Baker
123-45-6783
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