Instructions For Form 709 - 2008 (Page 10 of 12) in pdf

If either the right to income or the

art and the prevention of cruelty to

In column B, identify the Internal

power of appointment given to your

children or animals; or

Revenue Service office where you filed

•

spouse pertains only to a specific portion

Any war veterans’ organization

the returns. If you have changed your

of a property interest, the marital

organized in the United States (or any of

name, be sure to list any other names

deduction is allowed only to the extent

its possessions), or any of its auxiliary

under which the returns were filed. If

that the rights of your spouse meet all

departments or local chapters or posts, as

there was any other variation in the

four of the above conditions. For

long as no part of any of the earnings

names under which you filed, such as the

example, if your spouse is to receive all of

benefits any one person.

use of full given names instead of initials,

the income from the entire interest, but

please explain.

On line 7, show your total charitable,

only has a power to appoint one-half of

public, or similar gifts (minus annual

In column C, enter the amount of

the entire interest, then only one-half

exclusions allowed). On the dotted line,

unified credit actually applied in the prior

qualifies for the marital deduction.

indicate which numbered items from the

period. If you are required to reduce your

A partial interest in property is treated

top of Schedule A are charitable gifts.

allowable unified credit because of gifts

as a specific portion of an entire interest

you made after September 8, 1976, and

Line 10. GST Tax

only if the rights of your spouse to the

before January 1, 1977, enter the unified

income and to the power constitute a

If you will pay GST tax with this return on

credit determined after the reduction.

fractional or percentile share of the entire

any direct skips reported on this return,

property interest. This means that the

the amount of that GST tax is also

In column E, show the correct amount

interest or share will reflect any increase

considered a gift and must be added to

(the amount finally determined) of the

or decrease in the value of the entire

your other gifts reported on this return.

taxable gifts for each earlier period.

property interest. If the spouse is entitled

If you entered gifts on Part 2, or if you

to receive a specified sum of income

See Regulations section 25.2504-2 for

and your spouse elected gift splitting and

annually, the capital amount that would

rules regarding the final determination of

your spouse made gifts subject to the

produce such a sum will be considered

the value of a gift.

GST tax that you are required to show on

the specific portion from which the spouse

your Form 709, complete Schedule C,

is entitled to receive the income.

and enter on line 10 the total of Schedule

Schedule C. Computation

Election to deduct qualified terminable

C, Part 3, column H. Otherwise, enter

interest property (QTIP). You may elect

zero on line 10.

of GST Tax

to deduct a gift of a terminable interest if it

Line 12. Election Out of QTIP

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

Part 1—Generation-Skipping

Treatment of Annuities

above, even though it does not meet

Transfers

requirement (3).

Section 2523(f)(6) creates an automatic

You must enter in Part 1 all of the gifts

QTIP election for gifts of joint and survivor

You make this election simply by

annuities where the spouses are the only

you listed in Part 2 of Schedule A, in that

listing the qualified terminable interest

possible recipients of the annuity prior to

order and using those same values.

property on Schedule A and deducting its

the death of the last surviving spouse.

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

Column B

are presumed to have made the election

The donor spouse can elect out of

for all qualified property that you both list

If you are reporting a generation-skipping

QTIP treatment, however, by checking

transfer that occurred because of the

and deduct on Schedule A. You may not

the box on line 12 and entering the item

close of an ETIP, complete column B for

make the election on a late filed Form

number from Schedule A for the annuities

such transfer as follows.

709.

for which you are making the election.

Any annuities entered on line 12 cannot

1. Provided the GST exemption is

Line 5

also be entered on line 4 of Schedule A,

being allocated on a timely filed gift tax

Enter the amount of the annual

return, enter the value as of the close of

Part 4. Any such annuities that are not

exclusions that were claimed for the gifts

the ETIP.

listed on line 12 must be entered on line 4

you listed on line 4.

of Part 4, Schedule A. If there is more

2. If the exemption is being allocated

than one such joint and survivor annuity,

after the due date (including extensions)

Line 7. Charitable Deduction

you are not required to make the election

for the gift tax return on which the transfer

You may deduct from the total gifts made

for all of them. Once made, the election is

should be reported, enter the value as of

during the calendar year all gifts you gave

irrevocable.

the time the exemption allocation was

to or for the use of:

made.

•

The United States, a state or political

subdivision of a state or the District of

Schedule B. Gifts From

Column C

Columbia, for exclusively public purposes;

•

Any corporation, trust, community

Prior Periods

You are allowed to claim the gift tax

chest, fund, or foundation organized and

annual exclusion currently allowable with

If you did not file gift tax returns for

operated only for religious, charitable,

respect to your reported direct skips

previous periods, check the “No” box on

scientific, literary, or educational

(other than certain direct skips to

page 1 of Form 709, line 11a of Part

purposes, or to prevent cruelty to children

trusts — see Note below), using the rules

1 — General Information and skip to Part

or animals, or to foster national or

and limits discussed earlier for the gift tax

2 — Tax Computation on the same page.

international amateur sports competition

annual exclusion. However, you must

(However, be sure to complete Schedule

(if none of its activities involve providing

allocate the exclusion on a gift-by-gift

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

athletic equipment unless it is a qualified

basis for GST computation purposes. You

for previous periods, check the “Yes” box

amateur sports organization), as long as

must allocate the exclusion to each gift to

on line 11a and complete Schedule B by

no part of the earnings benefits any one

the maximum allowable amount and in

listing the years or quarters in

person, no substantial propaganda is

chronological order, beginning with the

chronological order as described below. If

produced, and no lobbying or

earliest gift that qualifies for the exclusion.

you need more space, attach a separate

campaigning for any candidate for public

Be sure that you do not claim a total

sheet using the same format as

office is done;

exclusion of more than $12,000 per

Schedule B.

•

A fraternal society, order, or

donee.

association operating under a lodge

If you filed returns for gifts made

system, if the transferred property is to be

before 1971 or after 1981, show the

Note. You may not claim any annual

used only for religious, charitable,

calendar years in column A. If you filed

exclusion for a transfer made to a trust

scientific, literary, or educational

returns for gifts made after 1970 and

unless the trust meets the requirements

purposes, including the encouragement of

before 1982, show the calendar quarters.

discussed under Direct skip on page 6.

-10-

Instructions For Form 709 - 2008 Page 10

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