Instructions For Form 709 - 2007 (Page 5 of 12) in pdf

Enter one of the states of the United

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

If either of the above exceptions is

States (including the District of Columbia)

page 1; complete lines 13 through 17;

met, only the donor spouse must file a

or a foreign country in which you legally

and have your spouse sign the consent

return and the consenting spouse

reside or are domiciled at the time of the

on line 18.

signifies consent on that return.

gift.

Specific instructions for Part 2 — Tax

If you are not married or do not wish to

Line 7. Citizenship. Enter your

Computation are continued under Part

split gifts, skip to Schedule A.

citizenship.

2 — Tax Computation (Page 1 of Form

Line 15. If you were married to one

709) on page 11. Because you must

The term “citizen of the United States”

another for all of 2007, check the “Yes”

complete Schedules A, B, and C to fill out

includes a person who, at the time of

box and skip to line 17. If you were

Part 2, you will find instructions for these

making the gift:

married for only part of the year, check

•

Was domiciled in a possession of the

schedules below.

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

United States,

divorced or widowed after you made the

•

Was a U.S. citizen, and

gift, you cannot elect to split gifts if you

•

Schedule A. Computation

Became a U.S. citizen for a reason

remarried before the end of 2007.

other than being a citizen of a U.S.

of Taxable Gifts

Line 16. Check the box that explains the

possession or being born or residing in a

change in your marital status during the

Do not enter on Schedule A any gift or

possession.

year and give the date you were married,

part of a gift that qualifies for the political

A nonresident alien includes a person

divorced, or widowed, or the date the

organization, educational, or medical

who, at the time of making the gift:

•

donor spouse died.

exclusions. In the instructions below,

Was domiciled in a possession of the

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

United States,

Consent of Spouse

•

do not qualify for the political

Was a U.S. citizen, and

•

Your spouse must sign the consent for

organization, educational, or medical

Became a U.S. citizen only because he

your gift-splitting election to be valid. The

exclusions.

or she was a citizen of a possession or

consent may generally be signed at any

was born or resided in a possession.

Line A. Valuation Discounts

time after the end of the calendar year.

Lines 12–18. Split Gifts

However, there are two exceptions.

If the value of any gift you report in either

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

1. The consent may not be signed

A married couple may not file a

reflects a discount for lack of

after April 15 following the end of the year

joint gift tax return. However, if

marketability, a minority interest, a

in which the gift was made. But, if neither

after reading the instructions

fractional interest in real estate, blockage,

CAUTION

you nor your spouse has filed a gift tax

below, you and your spouse agree to split

market absorption, or for any other

return for the year on or before that date,

your gifts, you should file both of your

reason, answer “Yes” to the question at

the consent must be made on the first gift

individual gift tax returns together (that is,

the top of Schedule A. Also, attach an

tax return for the year filed by either of

in the same envelope) to help the IRS

explanation giving the factual basis for the

you.

process the returns and to avoid

claimed discounts and the amount of the

2. The consent may not be signed

correspondence from the IRS.

discounts taken.

after a notice of deficiency for the gift tax

Note. Form 709-A, United States Short

for the year has been sent to either you or

Line B. Qualified Tuition

Form Gift Tax Return, previously used by

your spouse.

Programs (529 Plans or

married couples to report nontaxable gifts

Programs)

they consent to split is obsolete.

The executor for a deceased spouse

or the guardian for a legally incompetent

If in 2007, you contributed more than

If you and your spouse agree, all gifts

spouse may sign the consent.

$12,000 to a QTP on behalf of any one

(including gifts of property held with your

person, you may elect to treat up to

spouse as joint tenants or tenants by the

When the Consenting Spouse Must

$60,000 of the contribution for that person

entirety) either of you make to third

Also File a Gift Tax Return

as if you had made it ratably over a

parties during the calendar year will be

In general, if you and your spouse elect

5-year period. The election allows you to

considered as made one-half by each of

gift splitting, then both spouses must file

apply the annual exclusion to a portion of

you if:

•

his or her own, individual, gift tax return.

the contribution in each of the 5 years,

You and your spouse were married to

beginning in 2007. You can make this

one another at the time of the gift;

However, only one spouse must file a

•

election for as many separate people as

If divorced or widowed after the gift,

return if all the requirements of either of

you made QTP contributions.

you did not remarry during the rest of the

the exceptions below are met. In the

calendar year;

exceptions below, “gifts” means gifts (or

You can only apply the election to a

•

Neither of you was a nonresident alien

parts of gifts) that do not qualify for the

maximum of $60,000. You must report in

at the time of the gift; and

political organization, educational, or

2007 all of your QTP contributions for any

•

You did not give your spouse a general

medical exclusions.

single person that exceed $60,000 (in

power of appointment over the property

addition to any other gifts you made to

Exception 1. During the calendar year:

interest transferred.

•

that person).

Only one spouse made any gifts,

•

If you transferred property partly to

The total value of these gifts to each

For each of the 5 years, you report in

your spouse and partly to third parties,

third-party donee does not exceed

Part 1 of Schedule A,

(20%) of the

you can only split the gifts if the interest

$24,000, and

amount for which you made the election.

•

transferred to the third parties is

All of the gifts were of present interests.

In column E of Part 1 (Schedule A), list

ascertainable at the time of the gift.

the date of the gift as the calendar year

Exception 2. During the calendar year:

The consent is effective for the entire

•

for which you are deemed to have made

Only one spouse (the donor spouse)

calendar year; therefore, all gifts made by

the gift (that is, the year of the current

made gifts of more than $12,000 but not

both you and your spouse to third parties

Form 709 you are filing). Do not list the

more than $24,000 to any third-party

during the calendar year (while you were

actual year of contribution for subsequent

donee,

married) must be split.

•

years.

The only gifts made by the other

If the consent is effective, the liability

spouse (the consenting spouse) were

However, if in any of the last 4 years of

for the entire gift tax of each spouse is

gifts of not more than $12,000 to

the election, you did not make any other

joint and several.

third-party donees other than those to

gifts that would require you to file a Form

If you meet these requirements and

whom the donor spouse made gifts, and

709, you do not need to file Form 709 to

•

want your gifts to be considered made

All of the gifts by both spouses were of

report that year’s portion of the election

one-half by you and one-half by your

present interests.

amount.

-5-

Instructions For Form 709 - 2007 Page 5

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