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Consent of Spouse

A nonresident alien includes a person

organization, educational, or medical

who, at the time of making the gift:

exclusions.

Your spouse must sign the consent for

•

Was domiciled in a possession of the

your gift-splitting election to be valid. The

Line A. Valuation Discounts

United States,

consent may generally be signed at any

•

If the value of any gift you report in either

Was a U.S. citizen, and

time after the end of the calendar year.

•

Part 1, Part 2, or Part 3 of Schedule A

Became a U.S. citizen only because he

However, there are two exceptions.

reflects a discount for lack of

or she was a citizen of a possession or

1. The consent may not be signed

marketability, a minority interest, a

was born or resided in a possession.

after April 15 following the end of the year

fractional interest in real estate, blockage,

in which the gift was made. But, if neither

Lines 12–18. Split Gifts

market absorption, or for any other

you nor your spouse has filed a gift tax

reason, answer “Yes” to the question at

return for the year on or before that date,

A married couple may not file a

the top of Schedule A. Also, attach an

the consent must be made on the first gift

joint gift tax return. However, if

explanation giving the factual basis for the

tax return for the year filed by either of

after reading the instructions

claimed discounts and the amount of the

CAUTION

you.

below, you and your spouse agree to split

discounts taken.

2. The consent may not be signed

your gifts, you should file both of your

Line B. Qualified Tuition

after a notice of deficiency for the gift tax

individual gift tax returns together (that is,

Programs (529 Plans or

for the year has been sent to either you or

in the same envelope) to help the IRS

your spouse.

Programs)

process the returns and to avoid

correspondence from the IRS.

If in 2010, you contributed more than

The executor for a deceased spouse

$13,000 to a QTP on behalf of any one

If you and your spouse agree, all gifts

or the guardian for a legally incompetent

person, you may elect to treat up to

(including gifts of property held with your

spouse may sign the consent.

$65,000 of the contribution for that person

spouse as joint tenants or tenants by the

When the Consenting Spouse Must

as if you had made it ratably over a

entirety) either of you make to third

5-year period. The election allows you to

Also File a Gift Tax Return

parties during the calendar year will be

apply the annual exclusion to a portion of

considered as made one-half by each of

In general, if you and your spouse elect

the contribution in each of the 5 years,

you if:

gift splitting, then both spouses must file

beginning in 2010. You can make this

•

You and your spouse were married to

his or her own, individual, gift tax return.

election for as many separate people as

one another at the time of the gift;

However, only one spouse must file a

you made QTP contributions.

•

If divorced or widowed after the gift,

return if the requirements of either of the

you did not remarry during the rest of the

You can only apply the election to a

exceptions below are met. In the

calendar year;

maximum of $65,000. You must report all

exceptions below, “gifts” means gifts (or

•

Neither of you was a nonresident alien

of your 2010 QTP contributions for any

parts of gifts) that do not qualify for the

at the time of the gift; and

single person that exceed $65,000 (in

political organization, educational, or

•

You did not give your spouse a general

addition to any other gifts you made to

medical exclusions.

power of appointment over the property

that person).

Exception 1. During the calendar year:

interest transferred.

For each of the 5 years, you report in

•

Only one spouse made any gifts,

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

If you transferred property partly to

•

The total value of these gifts to each

the amount for which you made the

your spouse and partly to third parties,

third-party donee does not exceed

election. In column E of Part 1 (Schedule

you can only split the gifts if the interest

$26,000, and

A) list the date of the gift as the calendar

transferred to the third parties is

•

All of the gifts were of present interests.

year for which you are deemed to have

ascertainable at the time of the gift.

Exception 2. During the calendar year:

made the gift (that is, the year of the

•

The consent is effective for the entire

Only one spouse (the donor spouse)

current Form 709 you are filing). Do not

calendar year; therefore, all gifts made by

made gifts of more than $13,000 but not

list the actual year of contribution for

both you and your spouse to third parties

more than $26,000 to any third-party

subsequent years.

during the calendar year (while you were

donee,

However, if in any of the last 4 years of

•

married) must be split.

The only gifts made by the other

the election, you did not make any other

spouse (the consenting spouse) were

gifts that would require you to file a Form

If the consent is effective, the liability

gifts of not more than $13,000 to

709, you do not need to file Form 709 to

for the entire gift tax of each spouse is

third-party donees other than those to

report that year’s portion of the election

joint and several.

whom the donor spouse made gifts, and

amount.

•

All of the gifts by both spouses were of

If you meet these requirements and

Example. In 2010, D contributed

present interests.

want your gifts to be considered made

$85,000 to a QTP for the benefit of her

one-half by you and one-half by your

If either of the above exceptions is

son. D elects to treat $65,000 of this

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

met, only the donor spouse must file a

contribution as having been made ratably

complete lines 13 through 17; and have

return and the consenting spouse

over a 5-year period. Accordingly, for

your spouse sign the consent on line 18.

signifies consent on that return.

2010, D reports the following:

If you are not married or do not wish to

Specific instructions for Part 2 — Tax

split gifts, skip to Schedule A.

$20,000

(the amount of the contribution

Computation are discussed later.

that exceeded $65,000)

Because you must complete Schedules

Line 15. If you were married to one

+ $13,000

(the

portion from the election)

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

another for all of 2010, check the “Yes”

instructions for these schedules below.

$33,000

the total gift to her son listed in

box and skip to line 17. If you were

Part 1 of Schedule A for 2010

married for only part of the year, check

the “No” box and go to line 16. If you were

Schedule A. Computation

In 2011, D gives a gift of $20,000 cash

divorced or widowed after you made the

to her niece and no other gifts. On her

of Taxable Gifts

gift, you cannot elect to split gifts if you

2011 Form 709, D reports in Part 1 of

remarried before the end of 2010.

Do not enter on Schedule A any gift or

Schedule A the $20,000 gift to her niece

Line 16. Check the box that explains the

part of a gift that qualifies for the political

and a $13,000 gift to her son (the one-fifth

change in your marital status during the

organization, educational, or medical

portion of the 2010 gift that is treated as

year and give the date you were married,

exclusions. In the instructions below,

made in 2011). In column E of Part 1

divorced, or widowed, or the date the

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

(Schedule A), D lists “2011” as the date of

donor spouse died.

do not qualify for the political

the gift.

-5-

Instructions For Form 709 - United States Gift (And Generation-Skipping Transfer) Tax Return - 2010 Page 5

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