Instructions For Form 709 - 2007 printable pdf download

2 0 07

Department of the Treasury

Internal Revenue Service

Instructions for Form 709

United States Gift (and Generation-Skipping Transfer) Tax Return

For gifts made during calendar year 2007.

Remember, if you are splitting

Section references are to the Internal

Photographs of Missing

TIP

gifts, your spouse must sign line

Revenue Code unless otherwise noted.

Children

18, in Part 1, page 1.

For Disclosure, Privacy Act, and

The IRS is a proud partner with the

Paperwork Reduction Act Notice, see

Who Must File

National Center for Missing and Exploited

page 12.

Children. Photographs of missing children

In general. If you are a citizen or resident

selected by the Center may appear in

of the United States, you must file a gift

Use

instructions on pages that would

tax return (whether or not any tax is

For Gifts

Revision of

otherwise be blank. You can help bring

ultimately due) in the following situations.

Made

Form 709

•

these children home by looking at the

After

and

Before

Dated

If you gave gifts to someone in 2007

photographs and calling

totalling more than $12,000 (other than to

– – – – –

January 1,

November

1-800-THE-LOST (1-800-843-5678) if you

your spouse), you probably must file

1982

1981

recognize a child.

Form 709. But see page 2 for information

December

January 1,

January

on specific gifts that are not taxable and

31, 1981

1987

General Instructions

for gifts to your spouse.

•

Certain gifts, called future interests, are

December

January 1,

December

not subject to the $12,000 annual

31, 1986

1989

1988

Purpose of Form

exclusion and you must file Form 709

December

January 1,

December

even if the gift was under $12,000. See

Use Form 709 to report the following:

31, 1988

1990

1989

•

Annual Exclusion on page 2.

Transfers subject to the federal gift and

•

certain generation-skipping transfer

A husband and wife may not file a joint

December

October 9,

October

gift tax return. Each individual is

(GST) taxes and to figure the tax, if any,

31, 1989

1990

responsible for his or her own Form 709.

due on those transfers and

October 8,

January 1,

November

•

You must file a gift tax return to split

Allocation of the lifetime GST

1990

1992

1991

gifts with your spouse (regardless of their

exemption to property transferred during

December

January 1,

December

the transferor’s lifetime. (For more details,

amount) as described in Part 1 — General

31, 1992

1998

1996

Information on page 4. Form 709-A,

see the instructions for Part 2 — GST

United States Short Form Gift Tax Return,

Exemption Reconciliation on page 11,

December

– – – – –

is obsolete.

and Regulations section 26.2632-1.)

31, 1997

•

If a gift is of community property, it is

All gift and GST taxes must be

considered made one-half by each

* Use the corresponding annual form.

computed and filed on a calendar

spouse. For example, a gift of $100,000

year basis. List all reportable gifts

of community property is considered a gift

CAUTION

What’s New

made during the calendar year on one

of $50,000 made by each spouse, and

•

Form 709. This means, you must file a

each spouse must file a gift tax return.

For gifts made to spouses who are not

•

separate return for each calendar year a

Likewise, each spouse must file a gift

U.S. citizens, the annual exclusion has

reportable gift is given (for example, a gift

tax return if they have made a gift of

increased to $125,000. See Nonresident

given in 2007 must be reported on a 2007

property held by them as joint tenants or

Aliens on page 3.

Form 709). Do not file more than one

•

tenants by the entirety.

File Form 709 at the Internal Revenue

•

Form 709 for any one calendar year.

Only individuals are required to file gift

Service Center listed under Where To File

tax returns. If a trust, estate, partnership,

on page 4.

How To Complete Form 709

or corporation makes a gift, the individual

•

The Small Business and Work

beneficiaries, partners, or stockholders

1. Determine whether you are

Opportunity Tax Act of 2007, P.L. 110-28,

are considered donors and may be liable

required to file Form 709.

extends the application of income tax

for the gift and GST taxes.

2. Determine what gifts you must

return preparer penalties to all tax return

•

The donor is responsible for paying the

report.

preparers, including gift tax return

gift tax. However, if the donor does not

3. Decide whether you and your

preparers. See Penalties, Return preparer

pay the tax, the person receiving the gift

spouse, if any, will elect to split gifts for

on page 4 for more details.

may have to pay the tax.

•

the year.

On page 1 of Form 709, to the far right

•

If a donor dies before filing a return, the

4. Complete lines 1 through 18 of

of the donor’s signature, we have added a

donor’s executor must file the return.

Part 1, page 1.

new third-party designee checkbox.

5. List each gift on Part 1, 2, or 3 of

Check the “Yes” box if you want to allow

Who does not need to file. If you meet

Schedule A, as appropriate.

the IRS to discuss your 2007 Form 709

all of the following requirements, you are

6. Complete Schedule B, if applicable.

with the paid preparer who signed it. See

not required to file Form 709:

•

Third-party designee on page 12 for more

7. If the gift was listed on Part 2 or 3

You made no gifts during the year to

information.

of Schedule A, complete the necessary

your spouse,

•

portions of Schedule C.

The maximum estate tax rate used to

You did not give more than $12,000 to

8. Complete Schedule A, Part 4.

compute the gift tax has decreased from

any one donee, and

•

9. Complete Part 2 on page 1.

46% to 45%. See the Table for

All the gifts you made were of present

Computing Gift Tax on page 12.

10. Sign and date the return.

interests.

Cat. No. 16784X

Instructions For Form 709 - 2007

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