Instructions For Form 709 - 2016 (Page 16 of 19) in pdf

the extent allowed by treaty with his or her

death is after December 31, 2010). In

Table of Basic Exclusion and

country of citizenship.

column E, enter the total of the amount in

Credit Amounts

column D that the donor has applied to

Last Deceased Spouse

(as Recalculated for 2016 Rates)

gifts in previous years and is applying to

Limitation

gifts reported on this return. A donor may

apply DSUE only to gifts made after the

The last deceased spouse is the most

DSUE arose.

Period

Exclusion

Credit

recently deceased person who was

Amounts

married to the surviving spouse at the time

of that person's death. The identity of the

Part 2. DSUE Received From Other

1977 (Quarters 1 & 2)

$30,000

$6,000

last deceased spouse is determined as of

Predeceased Spouse(s)

1977 (Quarters 3 & 4)

$120,667

$30,000

the day a taxable gift is made and is not

Enter information about the DSUE amount

1978

$134,000

$34,000

impacted by whether the decedent's

from the spouse(s), if any, who died prior

estate elected portability or whether the

1979

$147,333

$38,000

to the donor's most recently deceased

last deceased spouse had any DSUE

1980

$161,563

$42,500

spouse (but not before January 1, 2011) if

amount available. Remarriage also does

the prior spouse's executor elected

not affect the designation of the last

1981

$175,625

$47,000

portability of the DSUE amount. In column

deceased spouse and does not prevent

1982

$225,000

$62,800

D, indicate the amount of DSUE received

the surviving spouse from applying the

1983

$275,000

$79,300

from the estate of each predeceased

DSUE amount to taxable transfers.

spouse. In column E, enter the portion of

1984

$325,000

$96,300

When a taxable gift is made, the DSUE

the amount of DSUE shown in column D

1985

$400,000

$121,800

amount received from the last deceased

that was applied to prior lifetime gifts or

spouse is applied before the surviving

transfers. A donor may apply DSUE only

1986

$500,000

$155,800

spouse's basic exclusion amount. A

to gifts made after the DSUE arose.

1987 through 1997

$600,000

$192,800

surviving spouse who has more than one

Any remaining DSUE from a

1998

$625,000

$202,050

predeceased spouse is not precluded

predeceased spouse cannot be

from using the DSUE amount of each

1999

$650,000

$211,300

applied against tax arising from

spouse in succession. A surviving spouse

CAUTION

lifetime gifts if that spouse is not the most

2000 and 2001

$675,000

$220,550

may not use the sum of DSUE amounts

recently deceased spouse on the date of

from multiple predeceased spouses at

2002 through 2010

$1,000,000

$345,800

the gift. This rule applies even if the last

one time nor may the DSUE amount of a

2011

$5,000,000 $1,945,800

deceased spouse had no DSUE amount

predeceased spouse be applied after the

or made no valid portability election, or if

2012

$5,120,000 $1,993,800

death of a subsequent spouse.

the DSUE amount from the last deceased

2013

$5,250,000 $2,045,800

When a surviving spouse applies the

spouse has been fully applied to gifts in

2014

$5,340,000 $2,081,800

previous periods.

DSUE amount to a lifetime gift, the IRS

may examine any return of a predeceased

2015

$5,430,000 $2,117,800

spouse whose executor elected portability

Determining the Applicable Credit

2016

$5,450,000 $2,125,800

to verify the allowable DSUE amount. The

Amount Including DSUE

DSUE may be adjusted or eliminated as a

Schedule C. Portability of

result of the examination; however, the

On line 1, enter the donor's basic

Deceased Spousal Unused

IRS may make an assessment of

exclusion amount; for 2016, this amount is

additional tax on the return of a

Exclusion (DSUE) Amount

$5,450,000. Add the amounts listed in

predeceased spouse only within the

column E from Parts 1 and 2 and enter the

Section 303 of the Tax Relief,

applicable limitations period under section

total on line 2. On line 3, enter the total of

Unemployment Insurance

6501.

lines 1 and 2. Using the Table for

Reauthorization, and Job Creation Act of

Completing Schedule C

Computing Gift Tax, determine the donor's

2010 authorized estates of decedents

applicable credit by applying the

Complete Schedule C if the donor is a

dying on or after January 1, 2011, to elect

appropriate tax rate to the amount on

surviving spouse who received a DSUE

to transfer any unused exclusion to the

line 3. Enter this amount on line 4 and on

amount from one or more predeceased

surviving spouse. The amount received by

line 7 of Part 2—Tax Computation.

spouses.

the surviving spouse is called the

deceased spousal unused exclusion, or

Entry spaces with gray shading

Schedule D. Computation

DSUE, amount. If the executor of the

and columns and lines marked

decedent's estate elects transfer, or

of GST Tax

“Reserved” are inactive. Do not

portability, of the DSUE amount, the

CAUTION

enter any information in these areas.

surviving spouse can apply the DSUE

Part 1—Generation-Skipping

amount received from the estate of his or

Transfers

Schedule C requests information on all

her last deceased spouse (defined later)

DSUE amounts received from the donor's

Enter in Part 1 all of the gifts you listed in

against any tax liability arising from

last deceased spouse and any previously

Part 2 of Schedule A, in the same order

subsequent lifetime gifts and transfers at

deceased spouses. Each line in the chart

and showing the same values.

death.

should reflect a different predeceased

Complete Schedule A before

spouse.

Column B

beginning Schedule C.

If you are reporting a generation-skipping

Part 1. DSUE Received From the

CAUTION

transfer that occurred because of the

Last Deceased Spouse

Note. A nonresident surviving spouse

close of an ETIP, complete column B for

who is not a citizen of the United States

In this Part, include information about the

such transfer as follows.

may not take into account the DSUE

DSUE amount from the donor's most

amount of a deceased spouse, except to

recently deceased spouse (whose date of

-16-

Instructions For Form 709 - 2016 Page 16

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