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gift of a terminable interest if all four

international amateur sports competition

(However, be sure to complete Schedule

requirements below are met:

(if none of its activities involve providing

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

athletic equipment unless it is a qualified

for previous periods, check the “Yes” box

1. Your spouse is entitled for life to all

amateur sports organization), as long as

on line 11a and complete Schedule B by

of the income from the entire interest;

no part of the earnings benefits any one

listing the years or quarters in

2. The income is paid yearly or more

person, no substantial propaganda is

chronological order as described below. If

often;

produced, and no lobbying or

you need more space, attach a separate

3. Your spouse has the unlimited

campaigning for any candidate for public

sheet using the same format as Schedule

power, while he or she is alive or by will,

office is done;

to appoint the entire interest in all

•

A fraternal society, order, or

circumstances; and

Column A. If you filed returns for gifts

association operating under a lodge

4. No part of the entire interest is

made before 1971 or after 1981, show the

system, if the transferred property is to be

subject to another person’s power of

calendar years in column A. If you filed

used only for religious, charitable,

appointment (except to appoint it to your

returns for gifts made after 1970 and

scientific, literary, or educational

spouse).

before 1982, show the calendar quarters.

purposes, including the encouragement of

art and the prevention of cruelty to

If either the right to income or the

Column B. In column B, identify the IRS

children or animals; or

power of appointment given to your

office where you filed the returns. If you

•

Any war veterans’ organization

spouse pertains only to a specific portion

have changed your name, be sure to list

organized in the United States (or any of

of a property interest, the marital

any other names under which the returns

its possessions), or any of its auxiliary

deduction is allowed only to the extent

were filed. If there was any other variation

departments or local chapters or posts, as

that the rights of your spouse meet all

in the names under which you filed, such

long as no part of any of the earnings

four of the above conditions. For

as the use of full given names instead of

benefits any one person.

example, if your spouse is to receive all of

initials, please explain.

the income from the entire interest, but

On line 7, show your total charitable,

Column C. To determine the amount of

only has a power to appoint one-half of

public, or similar gifts (minus annual

the unified credit used for gifts made after

the entire interest, then only one-half

exclusions allowed). On the dotted line,

1976, use the Worksheet for Form 709

qualifies for the marital deduction.

indicate which numbered items from the

Schedule B, Column C (Unified Credit

top of Schedule A are charitable gifts.

A partial interest in property is treated

Allowable for Prior Gifts), below, unless

as a specific portion of an entire interest

your prior gifts total $500,000 or less.

Line 10. GST Tax

only if the rights of your spouse to the

If GST tax is due on any direct skips

Prior gifts totaling $500,000 or less.

income and to the power are a fractional

reported on this return, the amount of that

In column C, enter the amount of unified

or percentile share of the entire property

GST tax is also considered a gift and

credit actually applied in the prior period.

interest. This means that the interest or

must be added to the value of the direct

share will reflect any increase or

Prior gifts totaling more than

skip reported on this return.

decrease in the value of the entire

$500,000. Beginning with the earliest

property interest. If the spouse is entitled

If you entered gifts on Part 2, or if you

year in which taxable gifts that used

to receive a specified sum of income

and your spouse elected gift splitting and

unified credit were made, redetermine the

annually, the capital amount that would

your spouse made gifts subject to the

unified credit amount for each quarter/

produce such a sum will be considered

GST tax that you are required to show on

year as follows:

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

Column

Instructions for Worksheet for

C, Part 3, column H. Otherwise, enter

Election to deduct qualified terminable

Form 709 Schedule B, Column C

zero on line 10.

interest property (QTIP). You may elect

(Unified Credit Allowable for Prior

Periods).

to deduct a gift of a terminable interest if it

Line 12. Election Out of QTIP

(a)

Period. Beginning with the earliest

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

Treatment of Annuities

year in which taxable gifts were

above, even though it does not meet

Section 2523(f)(6) creates an automatic

made, enter the quarter/year of the

requirement (3).

QTIP election for gifts of joint and survivor

prior gift(s).

You make this election simply by

(b)

Taxable Gifts for Current Period.

annuities where the spouses are the only

listing the qualified terminable interest

Enter all taxable gifts. Enter all

possible recipients of the annuity prior to

property on Schedule A and deducting its

pre-1977 gifts together on the

the death of the last surviving spouse.

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

pre-1977 row.

The donor spouse can elect out of

are presumed to have made the election

(c)

Taxable Gifts for Prior Periods.

QTIP treatment, however, by checking

for all qualified property that you both list

Enter the amount from column (d) of

the box on line 12 and entering the item

the previous row.

and deduct on Schedule A. You may not

number from Schedule A for the annuities

(d)

Cumulative Taxable Gifts Including

make the election on a late filed Form

for which you are making the election.

Current Period. Enter the sum of

709.

Any annuities entered on line 12 cannot

column (b) and column (c) from the

Line 5

also be entered on line 4 of Schedule A,

current row.

(e)

Tax Based on 2010 Rates on Gifts

Part 4. Any such annuities that are not

Enter the amount of the annual

for Prior Periods. Enter the amount

listed on line 12 must be entered on line 4

exclusions that were claimed for the gifts

from column (f) of the previous row.

of Part 4, Schedule A. If there is more

you listed on line 4.

(f)

Tax Based on 2010 Rates on

than one such joint and survivor annuity,

Line 7. Charitable Deduction

Cumulative Gifts Including Current

you are not required to make the election

Period. Enter the tax based on the

You may deduct from the total gifts made

for all of them. Once made, the election is

amount in column (d) of the current

during the calendar year all gifts you gave

irrevocable.

row using the Table for Computing

to or for the use of:

Gift Tax, below.

•

The United States, a state or political

(g)

Tax on Gifts for Current Period.

Schedule B. Gifts From

subdivision of a state or the District of

Subtract the amount in column (e)

Columbia for exclusively public purposes;

Prior Periods

from the amount in column (f) for the

•

Any corporation, trust, community

current row.

chest, fund, or foundation organized and

If you did not file gift tax returns for

(h)

Maximum Unified Credit Available

operated only for religious, charitable,

previous periods, check the “No” box on

for Current Period (based on 2010

scientific, literary, or educational

page 1 of Form 709, line 11a of Part

Rates). Enter the amount from the

purposes, or to prevent cruelty to children

1 — General Information and skip to Part

Table of Unified Credits (as

or animals, or to foster national or

2 — Tax Computation on the same page.

recalculated using 2010 tax rates).

-10-

Instructions For Form 709 - United States Gift (And Generation-Skipping Transfer) Tax Return - 2010 Page 10

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