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Department of the Treasury

Internal Revenue Service

Instructions for Form 709

United States Gift (and Generation-Skipping Transfer) Tax Return

(For gifts made during calendar year 2003.)

For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see page 12 of the instructions.

Section references are to the Internal Revenue Code unless otherwise noted.

•

Schedule C has a new line 5 that is

How To Complete Form 709

Use

used to report the allocation of GST

For Gifts

Revision of

1. Determine whether you are

exemption to transfers reported on Part 3

Made

Form 709

required to file Form 709.

of Schedule A. The other lines have been

After

and

Before

Dated

2. Determine what gifts you must

renumbered accordingly.

report.

— — —

January 1,

November

1982

1981

3. Decide whether you and your

Other Items To Note

spouse, if any, will elect to split gifts for

December

January 1,

January

•

the year.

The annual exclusion for gifts of

31, 1981

1987

4. Complete lines 1 – 18 of Part 1,

present interests made to a donee during

December

January 1,

December

page 1.

the calendar year is $11,000.

31, 1986

1989

1988

•

5. List each gift on Part 1, 2, or 3, of

The unified credit is $345,800.

•

Schedule A as appropriate.

December

January 1,

December

For gifts made to spouses who are not

31, 1988

1990

1989

6. Complete Schedule B, if applicable.

U.S. citizens, the annual exclusion has

7. If the gift was listed on Part 2 or 3

increased to $112,000. See page 3.

December

October 9,

October

of Schedule A, complete the necessary

•

31, 1989

1990

The generation-skipping transfer (GST)

portions of Schedule C.

lifetime exemption has increased to

October 8,

January 1,

November

8. Complete Schedule A, Part 4.

$1,120,000. See page 11.

1990

1992

1991

9. Complete Part 2 on page 1.

•

Form 709-A, United States Short Form

December

January 1,

December

10. Sign and date the return.

Gift Tax Return, is obsolete. All gift tax

31, 1992

1998

1996

returns must now be filed on Form 709.

Remember, if you are splitting gifts

your spouse must sign line 18, in Part 1,

page 1.

Photographs of Missing

Important Changes

Who Must File

Children

We have substantially revised Form 709

In general. If you are a citizen or resident

for 2003.

The IRS is a proud partner with the

•

of the United States, you must file a gift

National Center for Missing and Exploited

We have added a new Part 3 to

tax return (whether or not any tax is

Schedule A. The taxable gift reconciliation

Children. Photographs of missing children

ultimately due) in the following situations:

is now Part 4. Use the new Part 3 to

selected by the Center may appear in

•

If you gave gifts to someone in 2003

report gifts to trusts that are currently

instructions on pages that would

totalling more than $11,000 (other than to

subject only to gift tax but may later be

otherwise be blank. You can help bring

your spouse) you probably must file Form

subject to generation-skipping transfer

these children home by looking at the

709. But see page 2 for information on

(GST) tax. These are transfers that are

photographs and calling

specific gifts that are not taxable and for

not direct skips (and therefore do not go

1-800-THE-LOST (1-800-843-5678) if you

gifts to your spouse.

in Part 2) but that could have taxable GST

recognize a child.

•

distributions or terminations in the future.

Certain gifts, called future interests, are

not subject to the $11,000 annual

For more information, see Part 3 —

General Instructions

exclusion and you must file Form 709

Indirect Skips on page 9.

•

even if the gift was under $11,000. See

If you have chosen to use gift splitting,

Purpose of Form

page 3.

Schedule A and Schedule C now require

•

A husband and wife may not file a joint

you to list individually all gifts that were

Use Form 709 to report the following:

gift tax return. Each individual is

made by your spouse and are being split

•

Transfers subject to the Federal gift

responsible for his or her own Form 709.

between spouses. Previously, only the

and certain generation-skipping transfer

•

total of your spouse’s gifts was reported

You must file a gift tax return to split

(GST) taxes and to figure the tax, if any,

on your return. We have deleted the lines

gifts with your spouse (regardless of their

due on those transfers, and

in the Taxable Gift Reconciliation that

amount) as described in Part 1 —

•

Allocation of the lifetime GST

General Information on page 5.

were previously used to report the split

•

exemption to property transferred during

gifts. See page 5 for information on gift

If a gift is of community property, it is

the transferor’s lifetime. (For more details,

splitting and page 8 for more information

considered made one-half by each

see the instructions for Part 2 — GST

on how to report these gifts.

spouse. For example, a gift of $100,000

•

Exemption Reconciliation on page 11,

of community property is considered a gift

Column C in Schedule A, Parts 2 and

and Regulations section 26.2632-1.)

of $50,000 made by each spouse, and

3, is now used to make certain elections

All gift and GST taxes must be

each spouse must file a gift tax return.

regarding allocation of the GST

•

computed and filed on a calendar year

exemption. See page 9 for more

Likewise, each spouse must file a gift

basis.

information.

tax return if they have made a gift of

Cat. No. 16784X

Instructions For Form 709 - United States Gift (And Generation-Skipping Transfer) Tax Return - 2003

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