Instructions For Form 709 - 2009 (Page 10 of 12) in pdf

If either the right to income or the

purposes, including the encouragement of

returns for gifts made after 1970 and

power of appointment given to your

art and the prevention of cruelty to

before 1982, show the calendar quarters.

spouse pertains only to a specific portion

children or animals; or

•

In column B, identify the IRS office

of a property interest, the marital

Any war veterans’ organization

where you filed the returns. If you have

deduction is allowed only to the extent

organized in the United States (or any of

changed your name, be sure to list any

that the rights of your spouse meet all

its possessions), or any of its auxiliary

other names under which the returns

four of the above conditions. For

departments or local chapters or posts, as

were filed. If there was any other variation

example, if your spouse is to receive all of

long as no part of any of the earnings

in the names under which you filed, such

the income from the entire interest, but

benefits any one person.

as the use of full given names instead of

only has a power to appoint one-half of

initials, please explain.

On line 7, show your total charitable,

the entire interest, then only one-half

public, or similar gifts (minus annual

qualifies for the marital deduction.

In column C, enter the amount of

exclusions allowed). On the dotted line,

unified credit actually applied in the prior

A partial interest in property is treated

indicate which numbered items from the

period. If you are required to reduce your

as a specific portion of an entire interest

top of Schedule A are charitable gifts.

allowable unified credit because of gifts

only if the rights of your spouse to the

you made after September 8, 1976, and

Line 10. GST Tax

income and to the power constitute a

before January 1, 1977, enter the unified

fractional or percentile share of the entire

If you will pay GST tax with this return on

credit determined after the reduction.

property interest. This means that the

any direct skips reported on this return,

interest or share will reflect any increase

the amount of that GST tax is also

In column E, show the correct amount

or decrease in the value of the entire

considered a gift and must be added to

(the amount finally determined) of the

property interest. If the spouse is entitled

your other gifts reported on this return.

taxable gifts for each earlier period.

to receive a specified sum of income

If you entered gifts on Part 2, or if you

See Regulations section 25.2504-2 for

annually, the capital amount that would

and your spouse elected gift splitting and

rules regarding the final determination of

produce such a sum will be considered

your spouse made gifts subject to the

the value of a gift.

the specific portion from which the spouse

GST tax that you are required to show on

is entitled to receive the income.

your Form 709, complete Schedule C,

Election to deduct qualified terminable

and enter on line 10 the total of Schedule

Schedule C. Computation

interest property (QTIP). You may elect

C, Part 3, column H. Otherwise, enter

of GST Tax

to deduct a gift of a terminable interest if it

zero on line 10.

meets requirements (1), (2), and (4)

Part 1—Generation-Skipping

Line 12. Election Out of QTIP

above, even though it does not meet

requirement (3).

Treatment of Annuities

Transfers

Section 2523(f)(6) creates an automatic

You must enter in Part 1 all of the gifts

You make this election simply by

QTIP election for gifts of joint and survivor

you listed in Part 2 of Schedule A, in that

listing the qualified terminable interest

annuities where the spouses are the only

order and using those same values.

property on Schedule A and deducting its

possible recipients of the annuity prior to

value from Schedule A, Part 4, line 4. You

Column B

the death of the last surviving spouse.

are presumed to have made the election

If you are reporting a generation-skipping

for all qualified property that you both list

The donor spouse can elect out of

transfer that occurred because of the

and deduct on Schedule A. You may not

QTIP treatment, however, by checking

close of an ETIP, complete column B for

make the election on a late filed Form

the box on line 12 and entering the item

such transfer as follows.

709.

number from Schedule A for the annuities

1. Provided the GST exemption is

for which you are making the election.

Line 5

being allocated on a timely filed gift tax

Any annuities entered on line 12 cannot

Enter the amount of the annual

return, enter the value as of the close of

also be entered on line 4 of Schedule A,

the ETIP.

exclusions that were claimed for the gifts

Part 4. Any such annuities that are not

2. If the exemption is being allocated

you listed on line 4.

listed on line 12 must be entered on line 4

after the due date (including extensions)

of Part 4, Schedule A. If there is more

Line 7. Charitable Deduction

for the gift tax return on which the transfer

than one such joint and survivor annuity,

should be reported, enter the value as of

You may deduct from the total gifts made

you are not required to make the election

the time the exemption allocation was

during the calendar year all gifts you gave

for all of them. Once made, the election is

made.

to or for the use of:

irrevocable.

•

The United States, a state or political

subdivision of a state or the District of

Column C

Columbia for exclusively public purposes;

Schedule B. Gifts From

You are allowed to claim the gift tax

•

Any corporation, trust, community

annual exclusion currently allowable with

Prior Periods

chest, fund, or foundation organized and

respect to your reported direct skips

operated only for religious, charitable,

If you did not file gift tax returns for

(other than certain direct skips to

scientific, literary, or educational

previous periods, check the “No” box on

trusts — see Note below), using the rules

purposes, or to prevent cruelty to children

page 1 of Form 709, line 11a of Part

and limits discussed earlier for the gift tax

or animals, or to foster national or

1 — General Information and skip to Part

annual exclusion. However, you must

international amateur sports competition

2 — Tax Computation on the same page.

allocate the exclusion on a gift-by-gift

(if none of its activities involve providing

(However, be sure to complete Schedule

basis for GST computation purposes. You

athletic equipment unless it is a qualified

C, if applicable.) If you filed gift tax returns

must allocate the exclusion to each gift to

amateur sports organization), as long as

for previous periods, check the “Yes” box

the maximum allowable amount and in

no part of the earnings benefits any one

on line 11a and complete Schedule B by

chronological order, beginning with the

person, no substantial propaganda is

listing the years or quarters in

earliest gift that qualifies for the exclusion.

produced, and no lobbying or

chronological order as described below. If

Be sure that you do not claim a total

campaigning for any candidate for public

you need more space, attach a separate

exclusion of more than $13,000 per

office is done;

sheet using the same format as

donee.

•

A fraternal society, order, or

Schedule B.

association operating under a lodge

Note. You may not claim any annual

system, if the transferred property is to be

If you filed returns for gifts made

exclusion for a transfer made to a trust

used only for religious, charitable,

before 1971 or after 1981, show the

unless the trust meets the requirements

scientific, literary, or educational

calendar years in column A. If you filed

discussed under Direct skip on page 6.

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Instructions For Form 709 - 2009 Page 10

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