Looking for a Form 709 Templates? Download it for free!

Example 4. Prior Years Unified Credit Recalculation (for Form 709 Schedule B, Column C)

(Gifts made during six consecutive years with different maximum unified credits available)

Use this worksheet to figure amounts for Schedule B, Column C.

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

(i)

(j)

(k)

Period

Taxable

Cumulative

Tax

Tax Based on

Tax on

Maximum

Unified

Available

Credit

Gifts for

Taxable Gifts Based on

2010 Rates

Gifts for

Unified

Credit

Credit in

Allowable

Current

Prior

Including

2010

Current

Credit

Allowable in

Current

(lesser of

Period

Periods

Current

Rates on

Cumulative Period (Col. Available

Prior

Period

Col. (g) and

Period

Gifts for

Gifts

(f) - Col. (e))

for

Periods

(Col. (h) -

Col. (j))

(Col. (b) + Col.

Prior

Including

Current

Col. (i))

(c))

Periods

Current

Period

(Col. (c))

Period

(based on

(Col. (d))

2010

rates)

Pre-1977

100,000

23,800

1977 qtr.1

100,000

200,000

23,800

54,800

31,000

6,000

1977 qtr.3

100,000

200,000

300,000

54,800

87,800

33,000

30,000

6,000

24,000

1978 qtr. 1

100,000

300,000

400,000

87,800

121,800

34,000

30,000

4,000

1979 qtr. 1

100,000

400,000

500,000

121,800

155,800

34,000

38,000

34,000

4,000

1980 qtr. 1

100,000

500,000

600,000

155,800

190,800

35,000

42,500

38,000

4,500

1981 qtr. 1

100,000

600,000

700,000

190,800

225,800

35,000

47,000

42,500

4,500

1982

100,000

700,000

800,000

225,800

260,800

35,000

62,800

47,000

15,800

Total Unified Credit Used for Prior Gifts :

62,800

Column (c): Enter amount from column (d) of the previous row.

Column (e): Enter amount from column (f) of the previous row.

Column (h): Enter amount from the Table of Unified Credits. (For each row in column (h), subtract 20 percent of any amount allowed as a specific exemption for gifts

made after September 8, 1976, and before January 1, 1977.)

Column (i): Enter the sum of column (i) and column (k) from the previous row.

Example 5. Prior Years Unified Credit Recalculation (for Form 709 Schedule B, Column C)

(pre-1977 gifts plus three post 1976 years: earlier years’ gifts exceed unified credit then available. Last gift made after unified

credit was raised.)

Use this worksheet to figure amounts for Schedule B, Column C.

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

(i)

(j)

(k)

Period

Taxable

Cumulative

Tax

Tax Based

Tax on

Maximum

Unified

Available

Credit

Gifts for

Taxable Gifts Based on

on 2010

Gifts for

Unified

Credit

Credit in

Allowable

Current

Prior

Including

2010

Rates on

Current

Credit

Allowable in

Current

(lesser of

Period

Periods

Current

Rates on

Cumulative

Period

Available

Prior

Period

Col. (g) and

Period

Gifts for

Gifts

(Col. (f) -

for

Periods

(Col. (h) -

Col. (j))

(Col. (b) + Col.

Prior

Including

Col. (e))

Current

Col. (i))

(c))

Periods

Current

Period

(Col. (c))

Period

(based on

(Col. (d))

2010

rates)

Pre-1977

200,000

54,800

1987

600,000

200,000

800,000

54,800

260,800

206,000

190,800

1999

200,000

800,000

1,000,000

260,800

330,800

70,000

208,300

190,800

17,500

2002

100

1,000,000

1,000,100

330,800

330,835

330,800

208,300

122,500

Total Unified Credit Used for Prior Gifts :

208,335

Column (c): Enter amount from column (d) of the previous row.

Column (e): Enter amount from column (f) of the previous row.

Column (h): Enter amount from the Table of Unified Credits. (For each row in column (h), subtract 20 percent of any amount allowed as a specific exemption for gifts

made after September 8, 1976, and before January 1, 1977.)

Column (i): Enter the sum of column (i) and column (k) from the previous row.

Instructions for Schedule B. Gifts

Column E. In column E, show the

See Regulations section 25.2504-2 for

From Prior Periods Continued.

correct amount (the amount finally

rules regarding the final determination of

determined) of the taxable gifts for each

the value of a gift.

Column D. In column D, enter the

earlier period.