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

interests in trusts are defined only as

For interests in property based on the

mean between the bona fide bid and the

present interests, all of the interests in

length of a person’s life, give the date of

asked prices instead of sales prices. If

this trust are held by skip persons (the

birth of the person. If you transfer any

actual sales prices or bona fide bid and

children’s interests are future interests).

interest in a closely held entity, provide

asked prices are available within a

Therefore, the trust is a skip person and

the EIN of the entity.

reasonable period of time before the

you should list the entire amount you

valuation date but not after the valuation

For life insurance policies, give the

transferred to the trust in Part 2 of

date, or vice versa, use the mean

name of the insurer and the policy

Schedule A even though some of the

between the highest and lowest sales

number.

trust’s ultimate beneficiaries are nonskip

prices or bid and asked prices as the

Clearly identify in the description

persons.

FMV.

column which gifts create the opening of

Stock of close corporations or inactive

Part 1—Gifts Subject Only to

an ETIP as described under Transfers

stock must be valued on the basis of net

Gift Tax

Subject to an Estate Tax Inclusion Period

worth, earnings, earning and dividend

(ETIP) . Describe the interest that is

List in Part 1 gifts subject only to the gift

capacity, and other relevant factors.

creating the ETIP. An allocation of GST

tax. Generally, all of the gifts you made to

Generally, the best indication of the

exemption to property subject to an ETIP

your spouse (that are required to be

value of real property is the price paid for

that is made prior to the close of the ETIP

listed, as described earlier), to your

the property in an arm’s-length

becomes effective no earlier than the date

children, and to charitable organizations

transaction on or before the valuation

of the close of the ETIP. See Schedule C.

are not subject to the GST tax and

date. If there has been no such

Computation of GST Tax.

should, therefore, be listed only in Part 1.

transaction, use the comparable sales

Column D. Donor’s Adjusted Basis

Group the gifts in four categories:

method. In comparing similar properties,

•

of Gifts

Gifts made to your spouse,

consider differences in the date of the

•

Gifts made to third parties that are to

Show the basis you would use for income

sale, and the size, condition, and location

be split with your spouse,

tax purposes if the gift were sold or

of the properties, and make all

•

Charitable gifts (if you are not splitting

exchanged. Generally, this means cost

appropriate adjustments.

gifts with your spouse), and

plus improvements, less applicable

The value of all annuities, life estates,

•

Other gifts.

depreciation, amortization, and depletion.

terms for years, remainders, or reversions

If a transfer results in gifts to two or more

For more information on adjusted

is generally the present value on the date

individuals (such as a life estate to one

basis, see Pub. 551, Basis of Assets.

of the gift.

with remainder to the other), list the gift to

Sections 2701 and 2702 provide

each separately.

Columns E and F. Date and Value

special valuation rules to determine the

of Gift

Number and describe all gifts

amount of the gift when a donor transfers

(including charitable, public, and similar

The value of a gift is the fair market value

an equity interest in a corporation or

gifts) in the columns provided in Schedule

(FMV) of the property on the date the gift

partnership (section 2701) or makes a gift

is made (valuation date). The FMV is the

in trust (section 2702). The rules only

price at which the property would change

Column B

apply if, immediately after the transfer, the

hands between a willing buyer and a

donor (or an applicable family member)

Describe each gift in enough detail so that

willing seller, when neither is forced to

holds an applicable retained interest in

the property can be easily identified, as

buy or to sell, and when both have

the corporation or partnership, or retains

explained below.

reasonable knowledge of all relevant

an interest in the trust. For details, see

For real estate, give:

facts. FMV may not be determined by a

sections 2701 and 2702, and their

•

A legal description of each parcel;

forced sale price, nor by the sale price of

regulations.

•

The street number, name, and area if

the item in a market other than that in

Column G. Split Gifts

the property is located in a city; and

which the item is most commonly sold to

•

A short statement of any improvements

the public. The location of the item must

Enter an amount in this column only if you

made to the property.

be taken into account whenever

have chosen to split gifts with your

appropriate.

For bonds, give:

spouse.

•

The number of bonds transferred;

The FMV of a stock or bond (whether

Split Gifts—Gifts Made by

•

The principal amount of each bond;

listed or unlisted) is the mean between

Spouse

•

Name of obligor;

the highest and lowest selling prices

•

If you elected to split gifts with your

Date of maturity;

quoted on the valuation date. If only the

•

Rate of interest;

spouse and your spouse has given a

closing selling prices are available, then

•

Date or dates when interest is payable;

gift(s) that is being split with you, enter in

the FMV is the mean between the quoted

•

Series number, if there is more than

this area of Part 1 information on the

closing selling price on the valuation date

gift(s) made by your spouse. If only you

one issue;

and on the trading day before the

•

made gifts and you are splitting them with

Exchanges where listed or, if unlisted,

valuation date. If there were no sales on

your spouse, do not make an entry in this

give the location of the principal business

the valuation date, figure the FMV as

area.

office of the corporation; and

follows:

•

CUSIP number. The CUSIP number is

Generally, if you elect to split your

1. Find the mean between the highest

a nine-digit number assigned by the

gifts, you must split all gifts made by you

and lowest selling prices on the nearest

American Banking Association to traded

and your spouse to third-party donees.

trading date before and the nearest

securities.

The only exception is if you gave your

trading date after the valuation date. Both

spouse a general power of appointment

For stocks:

trading dates must be reasonably close to

•

over a gift you made.

Give number of shares;

the valuation date.

•

State whether common or preferred;

2. Prorate the difference between

Supplemental Documents

•

If preferred, give the issue, par value,

mean prices to the valuation date.

To support the value of your gifts, you

quotation at which returned, and exact

3. Add or subtract (whichever applies)

must provide information showing how it

name of corporation;

the prorated part of the difference to or

•

was determined.

If unlisted on a principal exchange, give

from the mean price figured for the

the location of the principal business

For stock of close corporations or

nearest trading date before the actual

office of the corporation, the state in

inactive stock, attach balance sheets,

valuation date.

which incorporated, and the date of

particularly the one nearest the date of

incorporation;

If no actual sales were made

the gift, and statements of net earnings or

•

If listed, give principal exchange; and

reasonably close to the valuation date,

operating results and dividends paid for

•

CUSIP number.

make the same computation using the

each of the 5 preceding years.

-8-

Instructions For Form 709 - United States Gift (And Generation-Skipping Transfer) Tax Return - 2010 Page 8

Related Articles

Related forms

Related Categories