Looking for a Form 709 Templates? Download it for free!

2006

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 2006.

selected by the Center may appear in

Section references are to the Internal

Who Must File

instructions on pages that would

Revenue Code unless otherwise noted.

In general. If you are a citizen or resident

otherwise be blank. You can help bring

For Disclosure, Privacy Act, and

of the United States, you must file a gift

these children home by looking at the

Paperwork Reduction Act Notice, see

tax return (whether or not any tax is

photographs and calling

page 12.

ultimately due) in the following situations.

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

•

If you gave gifts to someone in 2006

recognize a child.

Use

totalling more than $12,000, (other than to

For Gifts

Revision of

your spouse) you probably must file Form

General Instructions

Made

Form 709

709. But see page 2 for information on

After

and

Before

Dated

specific gifts that are not taxable and for

– – – – –

January 1,

November

gifts to your spouse.

Purpose of Form

•

1982

1981

Certain gifts, called future interests, are

Use Form 709 to report the following:

not subject to the $12,000 annual

December

January 1,

January

•

Transfers subject to the federal gift and

exclusion and you must file Form 709

31, 1981

1987

certain generation-skipping transfer

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

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

December

January 1,

December

Annual Exclusion on page 2.

•

31, 1986

1989

1988

due on those transfers and

A husband and wife may not file a joint

•

Allocation of the lifetime GST

gift tax return. Each individual is

December

January 1,

December

exemption to property transferred during

responsible for his or her own Form 709.

31, 1988

1990

1989

•

the transferor’s lifetime. (For more details,

You must file a gift tax return to split

December

October 9,

October

see the instructions for Part 2 — GST

gifts with your spouse (regardless of their

31, 1989

1990

Exemption Reconciliation on page 10,

amount) as described in Part 1 — General

and Regulations section 26.2632-1.)

Information on page 4. Form 709-A,

October 8,

January 1,

November

United States Short Form Gift Tax Return,

1990

1992

1991

All gift and GST taxes must be

is obsolete.

December

January 1,

December

•

computed and filed on a calendar

If a gift is of community property, it is

31, 1992

1998

1996

year basis. List all reportable gifts

CAUTION

considered made one-half by each

made during the calendar year on one

December

– – – – –

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

Form 709. This means, you must file a

31, 1997

of community property is considered a gift

separate return for each calendar year a

of $50,000 made by each spouse, and

reportable gift is given (for example, a gift

* Use the corresponding annual form.

each spouse must file a gift tax return.

•

given in 2006 must be reported on a 2006

Likewise, each spouse must file a gift

What’s New

Form 709). Do not file more than one

tax return if they have made a gift of

Form 709 for any one calendar year.

•

property held by them as joint tenants or

For calendar year 2006, the annual

tenants by the entirety.

exclusion for gifts of present interests is

How To Complete Form 709

•

Only individuals are required to file gift

$12,000 per donee. For more details, see

tax returns. If a trust, estate, partnership,

Annual Exclusion, on page 2.

1. Determine whether you are

•

or corporation makes a gift, the individual

required to file Form 709.

For gifts made to spouses who are not

beneficiaries, partners, or stockholders

U.S. citizens, the annual exclusion has

2. Determine what gifts you must

are considered donors and may be liable

increased to $120,000. See Nonresident

report.

for the gift and GST taxes.

Aliens on page 3.

3. Decide whether you and your

•

The donor is responsible for paying the

You must file Form 709 at the

spouse, if any, will elect to split gifts for

gift tax. However, if the donor does not

Cincinnati Service Center, regardless of

the year.

pay the tax, the person receiving the gift

whether you are located in the 50 states,

4. Complete lines 1 through 18 of

may have to pay the tax.

the District of Columbia, a foreign country,

•

Part 1, page 1.

If a donor dies before filing a return, the

American Samoa, Guam, the Virgin

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

donor’s executor must file the return.

Islands, Puerto Rico, or have an APO or

Schedule A, as appropriate.

FPO address. See Where To File on

Who does not need to file. If you meet

6. Complete Schedule B, if applicable.

page 4 for the address.

all of the following requirements, you are

•

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

The generation-skipping transfer (GST)

not required to file Form 709:

of Schedule A, complete the necessary

•

lifetime exemption has increased to

You made no gifts during the year to

portions of Schedule C.

$2,000,000. See Part 2 — GST Exemption

your spouse,

8. Complete Schedule A, Part 4.

•

Reconciliation on page 10.

You did not give more than $12,000 to

9. Complete Part 2 on page 1.

any one donee, and

Photographs of Missing

•

10. Sign and date the return.

All the gifts you made were of present

Children

interests.

Remember, if you are splitting

The IRS is a proud partner with the

Gifts to charities. If the only gifts you

TIP

gifts, your spouse must sign line

National Center for Missing and Exploited

made during the year are deductible as

18, in Part 1, page 1.

Children. Photographs of missing children

gifts to charities, you do not need to file a

Cat. No. 16784X

Instructions For Form 709 - United States Gift (And Generation-Skipping Transfer) Tax Return - 2006

Related Articles

Related forms

Related Categories