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How To Complete Parts 1, 2,

For each of the 5 years, you report in

Gifts made by spouse. If you elected

Part 1 of Schedule A one-fifth (20%) of the

and 3

gift splitting and your spouse made gifts,

amount for which you made the election.

list those gifts in the space below “Gifts

After you determine which gifts you made

In column E of Part 1 (Schedule A) list the

made by spouse” in Part 1, 2, or 3. Report

in 2017 that are subject to the gift tax, list

date of the gift as the calendar year for

these gifts in the same way you report gifts

them on Schedule A. You must divide

which you are deemed to have made the

you made.

these gifts between:

gift (that is, the year of the current Form

Gifts to Your Spouse

709 you are filing). Do not list the actual

1. Part 1—those subject only to the

year of contribution for subsequent years.

gift tax (gifts made to nonskip

Except for the gifts described below, you

persons—see Part 1—Gifts Subject Only

do not need to enter any of your gifts to

However, if in any of the last 4 years of

to Gift Tax),

your spouse on Schedule A.

the election, you did not make any other

2. Part 2—those subject to both the

gifts that would require you to file a Form

Terminable interests. Terminable

gift and GST taxes (gifts made to skip

709, you do not need to file Form 709 to

interests are defined in the instructions to

persons—see Gifts Subject to Both Gift

report that year's portion of the election

Part 4, line 4. If all the terminable interests

and GST Taxes and Part 2—Direct Skips),

amount.

you gave to your spouse qualify as life

and

estates with power of appointment

Example. In 2017, D contributed

3. Part 3—those subject only to the

(defined under Life estate with power of

$100,000 to a QTP for the benefit of her

gift tax at this time but which could later be

appointment), you do not need to enter

son. D elects to treat $70,000 of this

subject to GST tax (gifts that are indirect

any of them on Schedule A.

contribution as having been made ratably

skips, see Part 3—Indirect Skips).

However, if you gave your spouse any

over a 5-year period. Accordingly, for

terminable interest that does not qualify as

2017, D reports the following.

If you need more space, attach a

a life estate with power of appointment,

separate sheet using the same format as

you must report on Schedule A all gifts of

Schedule A.

$30,000

(the amount of the contribution

terminable interests you made to your

that exceeded $70,000)

Use the following guidelines when

spouse during the year.

1 5

+ $14,000

(the

portion from the election)

entering gifts on Schedule A.

TIP

Charitable remainder trusts. If you

$44,000

the total gift to her son listed in

make a gift to a charitable remainder trust

Part 1 of Schedule A for 2017

Enter a gift only once—in Part 1, Part 2,

and your spouse is the only noncharitable

or Part 3.

beneficiary (other than yourself), the

Do not enter any gift or part of a gift that

interest you gave to your spouse is not

In 2018, D gives a gift of $20,000 cash

qualified for the political organization,

considered a terminable interest and,

to her niece and no other gifts. On her

educational, or medical exclusion.

therefore, should not be shown on

2018 Form 709, D reports in Part 1 of

Enter gifts under “Gifts made by

Schedule A. See section 2523(g)(1). For

Schedule A the $20,000 gift to her niece

spouse” only if you have chosen to split

definitions and rules concerning these

and a $14,000 gift to her son (the one-fifth

gifts with your spouse and your spouse is

trusts, see section 2056(b)(8)(B).

portion of the 2017 gift that is treated as

required to file a Form 709 (see Part

made in 2018). In column E of Part 1

1—General Information, Lines 12–18. Split

Future interest. Generally, you should

(Schedule A), D lists “2018” as the date of

Gifts).

not report a gift of a future interest to your

the gift.

In column F, enter the full value of the

spouse unless the future interest also is a

gift (including those made by your spouse,

D makes no gifts in 2019, 2020, or

terminable interest that is required to be

if applicable). If you have chosen to split

reported as described earlier. However, if

2021. She is not required to file Form 709

gifts, that one-half portion of the gift is

you gave a gift of a future interest to your

in any of those years to report the one-fifth

entered in column G.

spouse and you are required to report the

portion of the QTP gift because she is not

otherwise required to file Form 709.

gift on Form 709 because you gave the

Gifts to Donees Other Than

present interest to a donee other than your

You make the election by checking the

Your Spouse

spouse, then you should enter the entire

box on line B at the top of Schedule A.

gift, including the future interest given to

You must always enter all gifts of future

The election must be made for the

your spouse, on Schedule A. You should

interests that you made during the

calendar year in which the contribution is

use the rules under Gifts Subject to Both

calendar year regardless of their value.

made. Also attach an explanation that

Gift and GST Taxes, later, to determine

includes the following.

Gift splitting not elected. If the total gifts

whether to enter the gift on Schedule A,

The total amount contributed per

of present interests to any donee are more

Part 1, 2, or 3.

individual beneficiary.

than $14,000 in the calendar year, then

Spouses who are not U.S. citizens. If

The amount for which the election is

you must enter all such gifts that you

your spouse is not a U.S. citizen and you

being made.

made during the year to or on behalf of

gave him or her a gift of a future interest,

The name of the individual for whom the

that donee, including those gifts that will

you must report on Schedule A all gifts to

contribution was made.

be excluded under the annual exclusion. If

your spouse for the year. If all gifts to your

the total is $14,000 or less, you need not

If you are electing gift splitting, apply

spouse were present interests, do not

enter on Schedule A any gifts (except gifts

the gift-splitting rules before applying the

report on Schedule A any gifts to your

of future interests) that you made to that

QTP rules. Each spouse would then

spouse if the total of such gifts for the year

donee. Enter these gifts in the top half of

decide individually whether to make this

does not exceed $149,000 and all gifts in

Part 1, 2, or 3, as applicable.

QTP election.

excess of $14,000 would qualify for a

Gift splitting elected. Enter on

marital deduction if your spouse were a

Contributions to QTPs do not

Schedule A the entire value of every gift

U.S. citizen (see the instructions for

qualify for the education

you made during the calendar year while

Schedule A, Part 4, line 4). If the gifts

exclusion.

CAUTION

you were married, even if the gift's value

exceed $149,000, you must report all of

will be less than $14,000 after it is split in

the gifts even though some may be

column G of Part 1, 2, or 3 of Schedule A.

excluded.

-7-

Instructions For Form 709 - United States Gift (And Generation-Skipping Transfer) Tax Return - 2017 Page 7

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