Instructions For Form 709 - 2009 (Page 5 of 12) in pdf

possession or being born or residing in a

Line 16. Check the box that explains the

Schedule A. Computation

possession.

change in your marital status during the

year and give the date you were married,

A nonresident alien includes a person

of Taxable Gifts

divorced, or widowed, or the date the

who, at the time of making the gift:

•

donor spouse died.

Do not enter on Schedule A any gift or

Was domiciled in a possession of the

part of a gift that qualifies for the political

United States,

•

Consent of Spouse

organization, educational, or medical

Was a U.S. citizen, and

•

exclusions. In the instructions below,

Became a U.S. citizen only because he

Your spouse must sign the consent for

“gifts” means gifts (or parts of gifts) that

or she was a citizen of a possession or

your gift-splitting election to be valid. The

do not qualify for the political

was born or resided in a possession.

consent may generally be signed at any

organization, educational, or medical

time after the end of the calendar year.

Lines 12–18. Split Gifts

exclusions.

However, there are two exceptions.

Line A. Valuation Discounts

1. The consent may not be signed

A married couple may not file a

after April 15 following the end of the year

If the value of any gift you report in either

joint gift tax return. However, if

in which the gift was made. But, if neither

Part 1, Part 2, or Part 3 of Schedule A

after reading the instructions

CAUTION

you nor your spouse has filed a gift tax

reflects a discount for lack of

below, you and your spouse agree to split

return for the year on or before that date,

marketability, a minority interest, a

your gifts, you should file both of your

the consent must be made on the first gift

fractional interest in real estate, blockage,

individual gift tax returns together (that is,

tax return for the year filed by either of

market absorption, or for any other

in the same envelope) to help the IRS

you.

reason, answer “Yes” to the question at

process the returns and to avoid

2. The consent may not be signed

the top of Schedule A. Also, attach an

correspondence from the IRS.

after a notice of deficiency for the gift tax

explanation giving the factual basis for the

Note. Form 709-A, United States Short

for the year has been sent to either you or

claimed discounts and the amount of the

Form Gift Tax Return, previously used by

your spouse.

discounts taken.

married couples to report nontaxable gifts

they consent to split, is obsolete.

Line B. Qualified Tuition

The executor for a deceased spouse

Programs (529 Plans or

If you and your spouse agree, all gifts

or the guardian for a legally incompetent

Programs)

(including gifts of property held with your

spouse may sign the consent.

spouse as joint tenants or tenants by the

If in 2009, you contributed more than

entirety) either of you make to third

When the Consenting Spouse Must

$13,000 to a QTP on behalf of any one

parties during the calendar year will be

person, you may elect to treat up to

Also File a Gift Tax Return

considered as made one-half by each of

$65,000 of the contribution for that person

In general, if you and your spouse elect

you if:

as if you had made it ratably over a

•

gift splitting, then both spouses must file

You and your spouse were married to

5-year period. The election allows you to

his or her own, individual, gift tax return.

one another at the time of the gift;

apply the annual exclusion to a portion of

•

If divorced or widowed after the gift,

the contribution in each of the 5 years,

However, only one spouse must file a

you did not remarry during the rest of the

beginning in 2009. You can make this

return if all the requirements of either of

calendar year;

election for as many separate people as

the exceptions below are met. In the

•

Neither of you was a nonresident alien

you made QTP contributions.

exceptions below, “gifts” means gifts (or

at the time of the gift; and

parts of gifts) that do not qualify for the

•

You can only apply the election to a

You did not give your spouse a general

political organization, educational, or

maximum of $65,000. You must report in

power of appointment over the property

medical exclusions.

2009 all of your QTP contributions for any

interest transferred.

single person that exceed $65,000 (in

If you transferred property partly to

Exception 1. During the calendar year:

addition to any other gifts you made to

•

your spouse and partly to third parties,

Only one spouse made any gifts,

that person).

•

you can only split the gifts if the interest

The total value of these gifts to each

For each of the 5 years, you report in

transferred to the third parties is

third-party donee does not exceed

Part 1 of Schedule A one-fifth (20%) of

ascertainable at the time of the gift.

$26,000, and

•

the amount for which you made the

All of the gifts were of present interests.

The consent is effective for the entire

election. In column E of Part 1 (Schedule

calendar year; therefore, all gifts made by

A) list the date of the gift as the calendar

Exception 2. During the calendar year:

both you and your spouse to third parties

•

year for which you are deemed to have

Only one spouse (the donor spouse)

during the calendar year (while you were

made the gift (that is, the year of the

made gifts of more than $13,000 but not

married) must be split.

current Form 709 you are filing). Do not

more than $26,000 to any third-party

If the consent is effective, the liability

list the actual year of contribution for

donee,

•

for the entire gift tax of each spouse is

subsequent years.

The only gifts made by the other

joint and several.

spouse (the consenting spouse) were

However, if in any of the last 4 years of

gifts of not more than $13,000 to

If you meet these requirements and

the election, you did not make any other

third-party donees other than those to

want your gifts to be considered made

gifts that would require you to file a Form

whom the donor spouse made gifts, and

one-half by you and one-half by your

709, you do not need to file Form 709 to

•

All of the gifts by both spouses were of

spouse, check the “Yes” box on line 12,

report that year’s portion of the election

present interests.

page 1; complete lines 13 through 17;

amount.

and have your spouse sign the consent

Example. In 2009, D contributed

If either of the above exceptions is

on line 18.

$85,000 to a QTP for the benefit of her

met, only the donor spouse must file a

If you are not married or do not wish to

son. D elects to treat $65,000 of this

return and the consenting spouse

split gifts, skip to Schedule A.

contribution as having been made ratably

signifies consent on that return.

over a 5-year period. Accordingly, for

Line 15. If you were married to one

2009, D reports the following:

another for all of 2009, check the “Yes”

Specific instructions for Part 2 — Tax

box and skip to line 17. If you were

Computation are continued under Part

$20,000

(the amount of the contribution

married for only part of the year, check

2 — Tax Computation (Page 1 of Form

that exceeded $65,000)

the “No” box and go to line 16. If you were

709) on page 11. Because you must

+ $13,000

(the

portion from the election)

divorced or widowed after you made the

complete Schedules A, B, and C to fill out

gift, you cannot elect to split gifts if you

Part 2, you will find instructions for these

$33,000

the total gift to her son listed in

remarried before the end of 2009.

schedules below.

Part 1 of Schedule A for 2009

-5-

Instructions For Form 709 - 2009 Page 5

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