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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 2005.)

For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see page 12 of the instructions.

Section references are to the Internal Revenue Code unless otherwise noted.

•

these children home by looking at the

If you gave gifts to someone in 2005

Use

photographs and calling

totalling more than $11,000 (other than to

For Gifts

Revision of

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

your spouse) you probably must file Form

Made

Form 709

recognize a child.

709. But see page 2 for information on

After

and

Before

Dated

specific gifts that are not taxable and for

— — —

January 1,

November

General Instructions

gifts to your spouse.

•

1982

1981

Certain gifts, called future interests, are

not subject to the $11,000 annual

December

January 1,

January

Purpose of Form

exclusion and you must file Form 709

31, 1981

1987

even if the gift was under $11,000. See

Use Form 709 to report the following:

December

January 1,

December

•

Annual Exclusion on page 2.

Transfers subject to the federal gift and

•

31, 1986

1989

1988

A husband and wife may not file a joint

certain generation-skipping transfer

gift tax return. Each individual is

December

January 1,

December

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

responsible for his or her own Form 709.

31, 1988

1990

1989

due on those transfers, and

•

You must file a gift tax return to split

Allocation of the lifetime GST

December

October 9,

October

gifts with your spouse (regardless of their

exemption to property transferred during

31, 1989

1990

amount) as described in Part 1 — General

the transferor’s lifetime. (For more details,

Information on page 5. Form 709-A,

October 8,

January 1,

November

see the instructions for Part 2 — GST

United States Short Form Gift Tax Return,

1990

1992

1991

Exemption Reconciliation on page 11,

is obsolete.

and Regulations section 26.2632-1.)

December

January 1,

December

•

If a gift is of community property, it is

31, 1992

1998

1996

All gift and GST taxes must be

considered made one-half by each

computed and filed on a calendar year

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

basis. List all reportable gifts made during

of community property is considered a gift

What’s New

the calendar year on one Form 709. Do

of $50,000 made by each spouse, and

•

For gifts made to spouses who are not

not file more than one Form 709 for any

each spouse must file a gift tax return.

•

U.S. citizens, the annual exclusion has

one calendar year.

Likewise, each spouse must file a gift

increased to $117,000. See Nonresident

tax return if they have made a gift of

How To Complete Form 709

Aliens on page 3.

property held by them as joint tenants or

•

Instead of writing a letter to the

tenants by the entirety.

1. Determine whether you are

•

Cincinnati Service Center to request an

Only individuals are required to file gift

required to file Form 709.

extension of time to file your gift tax

tax returns. If a trust, estate, partnership,

2. Determine what gifts you must

return, use Form 8892, Application for

or corporation makes a gift, the individual

report.

Automatic Extension of Time To File

beneficiaries, partners, or stockholders

3. Decide whether you and your

Form 709 and/or Payment of Gift/

are considered donors and may be liable

spouse, if any, will elect to split gifts for

Generation-Skipping Transfer Tax (Rev.

for the gift and GST taxes.

the year.

•

January 2006). See Extension of Time To

The donor is responsible for paying the

4. Complete lines 1 through 18 of Part

File on page 4 for more information.

gift tax. However, if the donor does not

•

1, page 1.

New regulations relating to the

pay the tax, the person receiving the gift

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

predeceased parent rule have amended

may have to pay the tax.

•

Schedule A, as appropriate.

the rules used to determine an

If a donor dies before filing a return, the

6. Complete Schedule B, if applicable.

individual’s generation assignment for

donor’s executor must file the return.

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

certain transfers occurring on or after July

Who does not need to file. If you meet

of Schedule A, complete the necessary

18, 2005. See Ninety-day rule on page 7,

all of the following requirements, you are

portions of Schedule C.

for more details.

not required to file Form 709:

•

8. Complete Schedule A, Part 4.

The generation-skipping transfer (GST)

•

You made no gifts during the year to

9. Complete Part 2 on page 1.

lifetime exemption remains $1,500,000.

your spouse,

See Part 2 — GST Exemption

10. Sign and date the return.

•

You did not give more than $11,000 to

Reconciliation on page 11.

any one donee, and

•

Remember, if you are splitting

All the gifts you made were of present

Photographs of Missing

TIP

gifts, your spouse must sign line

interests.

18, in Part 1, page 1.

Children

Gifts to charities. If the only gifts you

The IRS is a proud partner with the

made during the year are deductible as

Who Must File

National Center for Missing and Exploited

gifts to charities, you do not need to file a

Children. Photographs of missing children

In general. If you are a citizen or resident

return as long as you transferred your

selected by the Center may appear in

of the United States, you must file a gift

entire interest in the property to qualifying

instructions on pages that would

tax return (whether or not any tax is

charities. If you transferred only a partial

otherwise be blank. You can help bring

ultimately due) in the following situations.

interest, or transferred part of your

Cat. No. 16784X

Instructions For Form 709 - United States Gift (And Generation-Skipping Transfer) Tax Return - 2005

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