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 2016.
amount of the last deceased spouse (who
children home by looking at the
Section references are to the Internal Revenue
Code unless otherwise noted.
died after December 31, 2010). The
photographs and calling 1-800-THE-LOST
executor of the predeceased spouse's
(1-800-843-5678) if you recognize a child.
estate must have elected on a timely and
complete Form 706 to allow the donor to
For the latest information about
use the predeceased spouse's unused
developments related to Form 709 and its
Purpose of Form
instructions, such as legislation enacted
Final regulations regarding portability of
after they were published, go to
Use Form 709 to report the following.
the deceased spousal unused exclusion
Transfers subject to the federal gift and
(DSUE) amount were published in the
certain generation-skipping transfer (GST)
Federal Register on June 16, 2015. The
For Disclosure, Privacy Act, and
taxes and to figure the tax due, if any, on
final regulations are effective for dates of
Paperwork Reduction Act Notice, see
death and gifts on or after June 12, 2015.
Allocation of the lifetime GST
See Treasury Decision 9725, available at
exemption to property transferred during
For Gifts Made
the transferor's lifetime. (For more details,
Same-sex marriages. For federal tax
see Schedule D, Part 2—GST Exemption
purposes, marriages of couples of the
Reconciliation, later, and Regulations
same sex are treated the same as
marriages of couples of the opposite sex.
– – – – –
All gift and GST taxes must be
The term “spouse” includes an individual
computed and filed on a calendar
married to a person of the same sex.
year basis. List all reportable gifts
However, individuals who have entered
made during the calendar year on one
into a registered domestic partnership,
Form 709. This means you must file a
civil union, or other similar relationship that
separate return for each calendar year a
isn't considered a marriage under state
reportable gift is given (for example, a gift
law aren't considered married for federal
given in 2016 must be reported on a 2016
Form 709). Do not file more than one Form
QTIP election of predeceased spouse.
709 for any one calendar year.
Rev. Proc. 2016-49 provides updated
procedures to disregard and treat as null
How To Complete Form 709
October 8, 1990
and void for transfer tax purposes a
1. Determine whether you are
qualified terminable interest property
required to file Form 709.
(QTIP) election in situations where the
QTIP election was not necessary to
2. Determine what gifts you must
– – – – –
reduce the estate tax liability to zero. This
guidance provides that such procedures
3. Decide whether you and your
are unavailable where QTIP elections are
* Use the corresponding annual form.
spouse, if any, will elect to split gifts for the
made in estates in which the executor
elected portability of the deceased
4. Complete lines 1 through 19 of Part
spousal unused exclusion (DSUE) amount
under section 2010(c)(5)(A). If no DSUE
5. List each gift on Part 1, 2, or 3 of
election was made and the QTIP election
Schedule A, as appropriate.
qualifies to be treated as null and void, the
The annual gift exclusion for 2016
taxpayer must notify the IRS that the
remains at $14,000. See Annual
6. Complete Schedules B, C, and D,
election qualifies by entering “Filed
pursuant to Revenue Procedure 2016-49”
For gifts made to spouses who are not
7. If the gift was listed on Part 2 or 3 of
at the top of Form 709. See
U.S. citizens, the annual exclusion has
Schedule A, complete the necessary
increased to $148,000. See Nonresidents
portions of Schedule D.
not Citizens of the United States, later.
8. Complete Schedule A, Part 4.
The top rate for gifts and generation-
Photographs of Missing
9. Complete Part 2—Tax
skipping transfers remains at 40%. See
Table for Computing Gift Tax.
The basic credit amount for 2016 is
10. Sign and date the return.
The IRS is a proud partner with the
$2,125,800. See Table of Basic Exclusion
National Center for Missing and Exploited
Make sure to complete page 1
and Credit Amounts.
Children. Photographs of missing children
and the applicable schedules in
The applicable exclusion amount
selected by the Center may appear in
their entirety. Returns filed without
consists of the basic exclusion amount
instructions on pages that would otherwise
entries in each field will not be processed.
($5,450,000 in 2016) and, in the case of a
be blank. You can help bring these
surviving spouse, any unused exclusion
Nov 15, 2016
Cat. No. 16784X