Instructions For Form 709 - 2016 Page 13
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19Instructions for Worksheet for Schedule B, Column C (Credit Allowable for Prior Periods)
Beginning with the earliest year after 1976 in which gifts using a credit amount were made, determine the credit amount (at current rates) for each
quarter/year as follows.
Column
A
Enter the quarter/year of the prior gift(s). Pre-1977 gifts will be on the first row.
Period
B
Enter the amount of all taxable gifts for the year in Column A. The total of all pre-1977 gifts should
Taxable Gifts for Current Period
be combined in the first row.
C
Enter the amount from Column D of the previous row.
Taxable Gifts for Prior Periods
D
Enter the sum of Columns B and C from the current row.
Cumulative Taxable Gifts Including Current Period
E
Enter the amount from Column F of the previous row.
Tax on Gifts for Prior Periods
F
Enter the tax based on the amount in Column D of the current row using the Table for Computing
Tax on Cumulative Gifts Including Current Period
Gift Tax.
G
Subtract the amount in Column E from the amount in Column F of the current row and enter here.
Tax on Gifts for Current Period
H
Enter the total DSUE amount (if any) received from the estate of the donor's last deceased
Used DSUE Amount From Predeceased Spouse(s)
spouse and used by the donor in prior periods and the current period. DSUE may not be applied
to gifts made before the DSUE arose.
I
Enter the exclusion amount corresponding with the year listed in Column A of the current row.
Basic Exclusion Amount for Year of Gift
(See Table of Basic Exclusion and Credit Amounts.)
J
Add the amounts in Columns H and I of the current row and enter here.
Applicable Exclusion Amount
K
Using the Table for Computing Gift Tax, determine the credit corresponding to the amount in
Applicable Credit Amount (Based on Amount in Column J)
Column J of the current row and enter here. For each row in Column K, subtract 20% of any
amount allowed as a specific exemption for gifts made after September 8, 1976, and before
January 1, 1977.
L
Enter the total of the amounts in Columns L and N of the previous row.
Applicable Credit Amount Used in Prior Periods
M
Subtract the amount in Column L from the amount in Column K of the current row and enter here.
Available Credit in Current Period
N
Enter the lesser of Column G or Column M of the current row.
Credit Allowable
Repeat this process for each prior year with taxable gifts. Do not enter less than zero.
Worksheet for Schedule B, Column C (Credit Allowable for Prior Periods)
Prior Years Credit Recalculation (for Form 709 Schedule B, Column C)
(Keep for your records.)
A
B
C
D
E
F
G
H
I
J
K
L
M
N
Period
Taxable
Taxable
Cumulative
Tax on
Tax on
Tax on
DSUE From
Basic
Applicable
Applicable
Applicable
Available
Credit
Gifts for
Gifts for
Taxable Gifts
Gifts for
Cumulative
Gifts for
Pre-
Exclusion
Exclusion
Credit
Credit
Credit in
Allowable
Current
Prior
Including
Prior
Gifts
Current
deceased
for Year of
Amount
Amount
Amount
Current
(lesser of
Period
Periods
1
Current
Periods
Including
Period
Spouse(s)
Gift
4
(Col. H +
Based on
Used in Prior
Period
Col. G or
Period
(Col. C)
Current
(Col. F –
Col. I)
Column J
Periods
(Col. K – Col.
Col. M)
2, 3
3, 5
3, 6
(Col. B + Col.
Period (Col.
Col. E)
L)
C)
D)
3
Pre-1977
YYYY
YYYY
YYYY
Total Applicable Credit Used in Prior Periods (Enter the Total of Column N on Schedule B, Line 1, Column C) :
Column C: Enter amount from Column D of the previous row.
1.
2.
Column E: Compute the tax on the amount in Column C or enter amount from Column F of the previous row.
To compute tax or credit amount, see Table for Computing Gift Tax.
3.
For years prior to 2010, the basic exclusion amount equals the applicable exclusion amount.
4.
For each row in Column K, subtract 20% of any amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977.
5.
Enter the total of Columns L and N of the previous row.
6.
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