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However, if after reading the

The executor for a deceased spouse

Valuation Discounts

instructions below, you and your spouse

or the guardian for a legally incompetent

If the value of any gift you report in either

agree to split your gifts, you should file

spouse may sign the consent.

Part 1 or Part 2 of Schedule A reflects a

both of your individual gift tax returns

The consent is effective for the entire

discount for lack of marketability, a

together (i.e., in the same envelope) to

calendar year; therefore, all gifts made by

minority interest, a fractional interest in

avoid correspondence from the IRS.

both you and your spouse to third parties

real estate, blockage, market absorption,

If you and your spouse agree, all gifts

during the calendar year (while you were

or for any other reason, answer “Yes” to

(including gifts of property held with your

married) must be split.

the question at the top of Schedule A.

spouse as joint tenants or tenants by the

If the consent is effective, the liability for

Also, attach an explanation giving the

entirety) either of you make to third parties

the entire gift and GST taxes of each

factual basis for the claimed discounts

during the calendar year will be

spouse is joint and several.

and the amount of the discounts taken.

considered as made one-half by each of

When the Consenting Spouse Must

Qualified State Tuition Programs

you if:

Also File a Gift Tax Return

You and your spouse were married to

If your total 2000 contributions to a

one another at the time of the gift;

If the spouses elect gift splitting

qualified state tuition plan on behalf of any

If divorced or widowed after the gift, you

(described under Split Gifts on page 4),

individual beneficiary exceed $10,000,

did not remarry during the rest of the

then both the donor spouse and the

then for purposes of the annual exclusion

calendar year;

consenting spouse must each file

you may elect under section 529(c)(2)(B)

separate gift tax returns unless all the

to treat up to $50,000 of your total

Neither of you was a nonresident alien

requirements of either Exception 1 or 2

contributions as having been made

at the time of the gift; and

below are met.

ratably over a 5-year period beginning in

You did not give your spouse a general

2000.

Exception 1. During the calendar year:

power of appointment over the property

You must report in 2000 the entire

interest transferred.

Only one spouse made any gifts;

amount of the contribution in excess of

If you transferred property partly to your

The total value of these gifts to each

$50,000.

spouse and partly to third parties, you can

third-party donee does not exceed

You make the election by checking the

only split the gifts if the interest

$20,000; and

box on line B at the top of Schedule A.

transferred to the third parties is

All of the gifts were of present interests.

The election must be made for the

ascertainable at the time of the gift.

Exception 2. During the calendar year:

calendar year in which the contribution is

If you meet these requirements and

Only one spouse (the donor spouse)

made. Also attach an explanation that

want your gifts to be considered made

made gifts of more than $10,000 but not

includes the following:

one-half by you and one-half by your

more than $20,000 to any third-party

The total amount contributed per

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

donee;

individual beneficiary;

page 1; complete lines 13 through 17; and

The only gifts made by the other

have your spouse sign the consent on line

The amount for which the election is

spouse (the consenting spouse) were

18. If you are not married or do not wish

being made;

gifts of not more than $10,000 to

to split gifts, skip to Schedule A.

The name of the individual for whom

third-party donees other than those to

Line 15. If you were married to one

the contribution was made.

whom the donor spouse made gifts; and

another for the entire calendar year,

If you make this election, report only

All of the gifts by both spouses were of

check the “Yes” box and skip to line 17.

(20%) of your total contributions (up to

present interests.

If you were married for only part of the

$50,000) on the 2000 Form 709. You

If either Exception 1 or 2 is met, only

year, check the “No” box and go to line

must then report an additional 20% of the

the donor spouse must file a return and

16.

total in each of the succeeding 4 years. If

the consenting spouse signifies consent

Line 16. Check the box that explains the

you are electing gift splitting for the

on that return. This return may be made

change in your marital status during the

contributions, apply the gift-splitting rules

on Form 709-A, United States Short Form

year and give the date you were married,

before applying these rules. In this case,

Gift Tax Return. This form is much easier

divorced, or widowed.

both spouses must make the section

to complete than Form 709, and you

529(c)(2)(B) election on their respective

should consider filing it whenever either

Consent of Spouse

returns.

of the above exceptions is met and the

Note: Contributions to qualified state

To have your gifts (and generation-

gifts consist entirely of present interests

tuition plans do not qualify for the

skipping transfers) considered as made

in tangible personal property, cash, U.S.

educational exclusion.

Savings Bonds, or stocks and bonds

one-half by each of you, your spouse

listed on a stock exchange.

must sign the consent. The consent may

How To Complete Schedule A

generally be signed at any time after the

Specific instructions for Part 2—Tax

After you determine which gifts you made

end of the calendar year. However, there

Computation are continued on page 11.

are subject to the gift tax and therefore

are two exceptions:

Because you must complete Schedules

should be listed on Schedule A, you must

1. The consent may not be signed

A, B, and C to fill out Part 2, you will find

divide these gifts between those subject

after April 15 following the end of the year

instructions for these schedules below.

only to the gift tax (gifts made to nonskip

in which the gift was made. (But, if neither

persons—see page 6) and those subject

you nor your spouse has filed a gift tax

to both the gift and GST taxes (gifts made

Schedule A—Computation of

return for the year on or before that date,

to skip persons—see page 6). Gifts made

the consent must be made on the first gift

Taxable Gifts

to nonskip persons are entered in Part 1.

tax return for the year filed by either of

Gifts made to skip persons are entered in

Do not enter on Schedule A any gift or

you.)

Part 2.

part of a gift that qualifies for the political

2. The consent may not be signed

If you need more space, attach a

organization, educational, or medical

after a notice of deficiency for the gift or

separate sheet using the same format as

exclusions. In the instructions below,

GST tax for the year has been sent to

Schedule A.

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

either you or your spouse.

do not qualify for the political organization,

educational, or medical exclusions.

Page 5

Instructions For Form 709 - United States Gift (And Generation-Skipping Transfer) Tax Return - 2000 Page 5

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