Instructions For Form 709 - 2016 printable pdf download

2016

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.

Future Developments

estate must have elected on a timely and

General Instructions

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

exclusion amount.

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

those transfers.

death and gifts on or after June 12, 2015.

later.

Allocation of the lifetime GST

See Treasury Decision 9725, available at

exemption to property transferred during

For Gifts Made

Use Revision

the transferor's lifetime. (For more details,

Same-sex marriages. For federal tax

see Schedule D, Part 2—GST Exemption

Form 709

purposes, marriages of couples of the

Reconciliation, later, and Regulations

After

and Before

Dated

same sex are treated the same as

section 26.2632-1.)

marriages of couples of the opposite sex.

– – – – –

January 1,

November

All gift and GST taxes must be

The term “spouse” includes an individual

1982

1981

computed and filed on a calendar

married to a person of the same sex.

December 31,

January 1,

January 1987

year basis. List all reportable gifts

However, individuals who have entered

CAUTION

1981

1987

made during the calendar year on one

into a registered domestic partnership,

Form 709. This means you must file a

December 31,

January 1,

December

civil union, or other similar relationship that

separate return for each calendar year a

1986

1989

1988

isn't considered a marriage under state

reportable gift is given (for example, a gift

law aren't considered married for federal

December 31,

January 1,

December

given in 2016 must be reported on a 2016

tax purposes.

1988

1990

1989

Form 709). Do not file more than one Form

QTIP election of predeceased spouse.

December 31,

October 9,

October 1990

709 for any one calendar year.

1989

1990

Rev. Proc. 2016-49 provides updated

procedures to disregard and treat as null

How To Complete Form 709

October 8, 1990

January 1,

November

and void for transfer tax purposes a

1992

1991

1. Determine whether you are

qualified terminable interest property

December 31,

January 1,

December

required to file Form 709.

(QTIP) election in situations where the

1992

1998

1996

QTIP election was not necessary to

2. Determine what gifts you must

December 31,

– – – – –

reduce the estate tax liability to zero. This

report.

1997

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

year.

elected portability of the deceased

4. Complete lines 1 through 19 of Part

spousal unused exclusion (DSUE) amount

1—General Information.

under section 2010(c)(5)(A). If no DSUE

What's New

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

Exclusion, later.

as applicable.

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

https://

U.S. citizens, the annual exclusion has

Schedule A, complete the necessary

for

increased to $148,000. See Nonresidents

portions of Schedule D.

more information.

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

Children

Computation.

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

CAUTION

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

Instructions For Form 709 - 2016

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