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Example 1. Prior Years Credit Recalculation (for Form 709 Schedule B, Column C)

(Three post-1976 years involved. All have the same maximum credit available. Tentative tax exceeds available credit.)

Period

Taxable

Cumulative

Tax on

DSUE From

Basic

Applicable

Available

Credit

Gifts for

Taxable Gifts

Gifts for

Cumulative

Gifts for

Pre-

Exclusion

Credit

Credit in

Allowable

Current

Prior

Including

Prior

Gifts

Current

deceased

for Year of

Amount

Current

(lesser of

Period

Periods

Current

Periods

Including

Period

Spouse(s)

the Gift

(Col. H +

Based on

Used in Prior

Period

Col. G or

Period

(Col. C)

Current

(Col. F –

and

Col. I)

Column J

Periods

(Col. K – Col.

Col. M)

2, 3

3, 5

3, 6

(Col. B + Col.

Period (Col.

Col. E)

Restored

Exclusion

Amount

Pre-1977

2004

800,000

267,800

1,000,000

345,800

267,800

2007

300,000

800,000

1,100,000

267,800

385,800

118,000

1,000,000

345,800

267,800

78,000

2009

200,000

1,100,000

1,300,000

385,800

465,800

80,000

1,000,000

345,800

Total Applicable Credit Used in Prior Periods (Enter the Total of Column N on Schedule B, Line 1, Column C) :

345,800

Column C: Enter amount from Column D of the previous row.

Column E: Compute the tax on the amount in Column C or enter amount from Column F of the previous row.

To compute tax or credit amount, see Table for Computing Gift Tax.

For years prior to 2010, the basic exclusion amount equals the applicable exclusion amount.

For each row in Column K, subtract 20% of any amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977.

Enter the total of Columns L and N of the previous row.

Example 2. Prior Years Credit Recalculation (for Form 709 Schedule B, Column C)

(Pre-1977 gifts plus 3 post-1976 years: Earlier years' gifts exceed credit then available. Last gift made after credit increased.)

Period

Taxable

Cumulative

Tax on

DSUE From

Basic

Applicable

Available

Credit

Gifts for

Taxable Gifts

Gifts for

Cumulative

Gifts for

Pre-

Exclusion

Credit

Credit in

Allowable

Current

Prior

Including

Prior

Gifts

Current

deceased

for Year of

Amount

Current

(lesser of

Period

Periods

Current

Periods

Including

Period

Spouse(s)

the Gift

(Col. H +

Based on

Used in Prior

Period

Col. G or

Period

(Col. C)

Current

(Col. F –

and

Col. I)

Column J

Periods

(Col. K – Col.

Col. M)

2, 3

3, 5

3, 6

(Col. B + Col.

Period (Col.

Col. E)

Restored

Exclusion

Amount

Pre-1977

200,000

54,800

1987

600,000

200,000

800,000

54,800

267,800

213,000

600,000

192,800

1999

200,000

800,000

1,000,000

267,800

345,800

78,000

650,000

211,300

192,800

18,500

2002

100

1,000,000

1,000,100

345,800

345,840

1,000,000

345,800

211,300

134,500

Total Applicable Credit Used in Prior Periods (Enter the Total of Column N on Schedule B, Line 1, Column C) :

211,340

Column C: Enter amount from Column D of the previous row.

Column E: Compute the tax on the amount in Column C or enter amount from Column F of the previous row.

To compute tax or credit amount, see Table for Computing Gift Tax.

For years prior to 2010, the basic exclusion amount equals the applicable exclusion amount.

For each row in Column K, subtract 20% of any amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977.

Enter the total of Columns L and N of the previous row.

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