Instructions For Form 709 - 2016 Page 15
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19Example 3. Prior Years Credit Recalculation (for Form 709 Schedule B, Column C)
($6M gift exceeds the applicable credit, $5M DSUE received prior to subsequent $4M gift in the same year.)
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
Current
Periods
Including
Period
Spouse(s)
the Gift
(Col. H +
Based on
Used in Prior
Period
Col. G or
1
4
5
Period
(Col. C)
Current
(Col. F –
Col. I)
Column J
Periods
(Col. K – Col.
Col. M)
2, 3
3, 6
3, 7
(Col. B + Col.
Period (Col.
Col. E)
L)
C)
D)
3
Pre-1977
2011
10,000,000
0
10,000,000
0
3,945,800
3,945,800
4,000,000
5,000,000
9,000,000
3,545,800
0
3,545,800
3,545,800
YYYY
YYYY
Total Applicable Credit Used in Prior Periods (Enter the Total of Column N on Schedule B, Line 1, Column C) :
3,545,800
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.
4.
DSUE may not be applied to gifts made prior to when it arises. Consequently, the available DSUE for the current period is limited to $4,000,000, the value of gifts made after the DSUE arose.
For years prior to 2010, the basic exclusion amount equals the applicable exclusion amount.
5.
6.
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.
Enter the total of Columns L and N of the previous row.
7.
Example 4. Prior Years Credit Recalculation (for Form 709 Schedule B, Column C)
(Prior gift exceeds applicable credit, $5M DSUE received prior to subsequent gift.)
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
Current
Periods
Including
Period
Spouse(s)
the Gift
(Col. H +
Based on
Used in Prior
Period
Col. G or
1
4
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
2002
4,000,000
0
4,000,000
0
1,545,800
1,545,800
0
1,000,000
1,000,000
345,800
0
345,800
345,800
2011
4,000,000
4,000,000
8,000,000
1,545,800
3,145,800
1,600,000
4,000,000
5,000,000
9,000,000
3,545,800
345,800
3,200,000
1,600,000
YYYY
Total Applicable Credit Used in Prior Periods (Enter the Total of Column N on Schedule B, Line 1, Column C) :
1,945,800
Column C: Enter amount from Column D of the previous row.
1.
Column E: Compute the tax on the amount in Column C or enter amount from Column F of the previous row.
2.
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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