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appointment (except to appoint it to your

campaigning for any candidate for public

listing the years or quarters in

spouse).

office is done;

chronological order as described below. If

•

A fraternal society, order, or

you need more space, attach a separate

If either the right to income or the

association operating under a lodge

sheet using the same format as Schedule

power of appointment given to your

system, if the transferred property is to be

spouse pertains only to a specific

used only for religious, charitable,

If you filed returns for gifts made

portion of a property interest, the marital

scientific, literary, or educational

before 1971 or after 1981, show the

deduction is allowed only to the extent

purposes, including the encouragement of

calendar years in column A. If you filed

that the rights of your spouse meet all

art and the prevention of cruelty to

returns for gifts made after 1970 and

four of the above conditions. For

children or animals;

before 1982, show the calendar quarters.

example, if your spouse is to receive all of

•

Any war veterans’ organization

the income from the entire interest, but

In column B, identify the Internal

organized in the United States (or any of

only has a power to appoint one-half of

Revenue Service office where you filed

its possessions), or any of its auxiliary

the entire interest, then only one-half

the returns. If you have changed your

departments or local chapters or posts, as

qualifies for the marital deduction.

name, be sure to list any other names

long as no part of any of the earnings

under which the returns were filed. If

A partial interest in property is treated

benefits any one person.

there was any other variation in the

as a specific portion of an entire interest

On line 7, show your total charitable,

names under which you filed, such as the

only if the rights of your spouse to the

public, or similar gifts (minus annual

use of full given names instead of initials,

income and to the power constitute a

exclusions allowed). On the dotted line,

please explain.

fractional or percentile share of the entire

indicate which numbered items from the

property interest. This means that the

In column C, enter the amount of

top of Schedule A are charitable gifts.

unified credit actually applied in the prior

interest or share will reflect any increase

Line 10 —GST tax

or decrease in the value of the entire

period. If you are required to reduce your

allowable unified credit because of gifts

property interest. If the spouse is entitled

If you will pay GST tax with this return on

to receive a specified sum of income

you made after September 8, 1976, and

any direct skips reported on this return,

annually, the capital amount that would

before January 1, 1977, enter the unified

the amount of that GST tax is also

credit determined after the reduction.

produce such a sum will be considered

considered a gift and must be added to

the specific portion from which the spouse

your other gifts reported on this return.

In column E, show the correct amount

is entitled to receive the income.

(the amount finally determined) of the

If you entered gifts on Part 2, or if you

taxable gifts for each earlier period.

Election to deduct qualified terminable

and your spouse elected gift splitting and

interest property (QTIP). You may elect

your spouse made gifts subject to the

See Regulations section 25.2504-2 for

to deduct a gift of a terminable interest if it

GST tax that you are required to show on

rules regarding the final determination of

meets requirements 1, 2, and 4 above,

your Form 709, complete Schedule C,

the value of a gift.

even though it does not meet

and enter on line 10 the total of Schedule

requirement 3.

C, Part 3, column H. Otherwise, enter

Schedule C—Computation

zero on line 10.

You make this election simply by

listing the qualified terminable interest

Line 13 —QTIP election for

of Generation-Skipping

property on Schedule A and deducting its

annuities

Transfer Tax

value on line 4, Part 4, Schedule A. There

Section 2523(f)(6) creates an automatic

is no longer a box to check to make the

QTIP election for gifts of joint and survivor

Part 1—Generation-Skipping

election. You are presumed to have made

annuities where the spouses are the only

the election for all qualified property that

Transfers

possible recipients of the annuity prior to

you both list and deduct on Schedule A.

You must enter in Part 1 all of the gifts

the death of the last surviving spouse.

You may not make the election on a late

you listed in Part 2 of Schedule A, in that

The donor spouse can elect out of

filed Form 709.

order and using those same values.

QTIP treatment, however, by checking

Line 5

the box on line 13 and entering the item

Column B — “Transfers Subject to

Enter the amount of the annual

number from Schedule A for the annuities

an ETIP”

for which you are making the election.

exclusions that were claimed for the gifts

If you are reporting a generation-skipping

Any annuities entered on line 13 cannot

you listed on line 4.

transfer that occurred because of the

also be entered on line 4 of Schedule A,

close of an ETIP, complete column B for

Line 7 —Charitable deduction

Part 4. Any such annuities that are not

such transfer as follows:

You may deduct from the total gifts made

listed on line 13 must be entered on line 4

1. Provided the GST exemption is

during the calendar year all gifts you gave

of Part 4, Schedule A. If there is more

being allocated on a timely filed gift tax

to or for the use of:

than one such joint and survivor annuity,

•

return, enter the value as of the close of

The United States, a state or political

you are not required to make the election

the ETIP.

subdivision of a state or the District of

for all of them. Once made, the election is

2. If the exemption is being allocated

Columbia, for exclusively public purposes;

irrevocable.

•

after the due date (including extensions)

Any corporation, trust, community

for the gift tax return on which the transfer

chest, fund, or foundation organized and

should be reported, enter the value as of

Schedule B—Gifts From

operated only for religious, charitable,

the time the exemption allocation was

scientific, literary, or educational

Prior Periods

made.

purposes, or to prevent cruelty to children

or animals, or to foster national or

If you did not file gift tax returns for

Column C

international amateur sports competition

previous periods, check the “No” box on

(if none of its activities involve providing

line 11a of Part 1, page 1, and skip to the

You are allowed to claim the gift tax

athletic equipment (unless it is a qualified

Tax Computation on page 1. (However,

annual exclusion currently allowable with

amateur sports organization)), as long as

be sure to complete Schedule C, if

respect to your reported direct skips

no part of the earnings benefits any one

applicable.) If you filed gift tax returns for

(other than certain direct skips to trusts —

person, no substantial propaganda is

previous periods, check the “Yes” box on

see Note below), using the rules and

produced, and no lobbying or

line 11a and complete Schedule B by

limits discussed earlier for the gift tax

-10-

Instructions For Form 709 - United States Gift (And Generation-Skipping Transfer) Tax Return - 2003 Page 10

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