Instructions For Form 709 - 2016 (Page 4 of 19) in pdf

Transfers subject to the GST tax are

4. Complete Schedule D. Complete

The due date (with extensions) for filing

described in further detail in the

column B of Schedule D, Part 1, as

the donor's estate tax return; or

instructions.

explained in the instructions for that

April 18, 2017, or the extended due

schedule.

date granted for filing the donor's gift tax

Certain transfers, particularly

return.

5. Complete only lines 10 and 11 of

transfers to a trust, that are not

Schedule A, Part 4.

Extension of Time To File

subject to gift tax and are

CAUTION

therefore not subject to the GST tax on

6. Complete Part 2—Tax

There are two methods of extending the

Form 709 may be subject to the GST tax

Computation.

time to file the gift tax return. Neither

at a later date. This is true even if the

method extends the time to pay the gift or

Section 2701 Elections

transfer is less than the $14,000 annual

GST taxes. If you want an extension of

exclusion. In this instance, you may want

The special valuation rules of section 2701

time to pay the gift or GST taxes, you must

to apply a GST exemption amount to the

contain three elections that you must

request that separately. See Regulations

transfer on this return or on a Notice of

make with Form 709.

section 25.6161-1.

Allocation. For more information, see

1. A transferor may elect to treat a

By extending the time to file your in-

Schedule D, Part 2—GST Exemption

qualified payment right he or she holds

come tax return. Any extension of time

Reconciliation and Schedule A, Part

(and all other rights of the same class) as

granted for filing your calendar year 2016

3—Indirect Skips.

other than a qualified payment right.

federal income tax return will also

2. A person may elect to treat a

Transfers Subject to an Estate

automatically extend the time to file your

distribution right held by that person in a

2016 federal gift tax return. Income tax

Tax Inclusion Period (ETIP)

controlled entity as a qualified payment

extensions are made by using Form 4868,

Certain transfers that are direct skips

right.

Application for Automatic Extension of

receive special treatment. If the

Time To File U.S. Individual Income Tax

3. An interest holder may elect to treat

transferred property would have been

Return, or Form 2350, Application for

as a taxable event the payment of a

includible in the donor's estate if the donor

Extension of Time To File U.S. Income

qualified payment that occurs more than 4

had died immediately after the transfer (for

Tax Return. You may only use these forms

years after its due date.

a reason other than the donor having died

to extend the time for filing your gift tax

within 3 years of making the gift), the

The elections described in (1) and (2)

return if you are also requesting an

direct skip will be treated as having been

must be made on the Form 709 that is filed

extension of time to file your income tax

made at the end of the ETIP rather than at

by the transferor to report the transfer that

return.

the time of the actual transfer.

is being valued under section 2701. The

By filing Form 8892. If you do not

elections are made by attaching a

request an extension for your income tax

For example, if A transferred her house

statement to Form 709. For information on

return, use Form 8892, Application for

to her granddaughter, B, but retained the

what must be in the statement and for

Automatic Extension of Time To File Form

right to live in the house until her death (a

definitions and other details on the

709 and/or Payment of Gift/

retained life estate), the value of the house

elections, see section 2701 and

Generation-Skipping Transfer Tax, to

would be includible in A's estate if she

Regulations section 25.2701-2(c).

request an automatic 6-month extension

died while still holding the life estate. In

The election described in (3) may be

of time to file your federal gift tax return. In

this case, the transfer to B is a completed

made by attaching a statement to the

addition to containing an extension

gift (it is a transfer of a future interest) and

Form 709 filed by the recipient of the

request, Form 8892 also serves as a

must be reported on Part 1 of Schedule A.

qualified payment for the year the

payment voucher (Form 8892-V) for a

The GST portion of the transfer would not

payment is received. If the election is

balance due on federal gift taxes for which

be reported until A died or otherwise gave

made on a timely filed return, the taxable

you are extending the time to file. For

up her life estate in the house.

event is deemed to occur on the date the

more information, see Form 8892.

qualified payment is received. If it is made

Report the gift portion of such a

Private Delivery Services

on a late filed return, the taxable event is

transfer on Schedule A, Part 1, at the time

deemed to occur on the first day of the

You can use certain private delivery

of the actual transfer. Report the GST

month immediately preceding the month in

services designated by the IRS to meet

portion on Schedule A, Part 2, but only at

which the return is filed. For information on

the “timely mailing as timely filing/paying”

the close of the ETIP. Use Form 709 only

what must be in the statement and for

rule for tax returns and payments. These

to report those transfers where the ETIP

definitions and other details on this

private delivery services include only the

closed due to something other than the

election, see section 2701 and

following.

donor's death. (If the ETIP closed as the

Regulations section 25.2701-4(d).

Federal Express (FedEx): FedEx First

result of the donor's death, report the

Overnight, FedEx Priority Overnight,

transfer on Form 706, United States

All of the elections may be revoked

FedEx Standard Overnight, FedEx 2Day,

Estate (and Generation-Skipping Transfer)

only with the consent of the IRS.

FedEx International Next Flight Out,

Tax Return.)

When To File

FedEx International Priority, FedEx

If you are filing this Form 709 solely to

International First, and FedEx International

Form 709 is an annual return.

report the GST portion of transfers subject

Economy.

Generally, you must file the Form 709

to an ETIP, complete the form as you

United Parcel Service (UPS): UPS Next

no earlier than January 1, but not later

normally would with the following

Day Air Early AM, UPS Next Day Air, UPS

than April 15, of the year after the gift was

exceptions.

Next Day Air Saver, UPS 2nd Day Air,

made. However, in instances when April

UPS 2nd Day Air A.M., UPS Worldwide

1. Write “ETIP” at the top of page 1.

15 falls on a Saturday, Sunday, or legal

Express Plus, and UPS Worldwide

2. Complete only lines 1 through 6, 8,

holiday, Form 709 will be due on the next

Express.

and 9 of Part 1—General Information.

business day. See section 7503.

DHL Express 9:00, DHL Express 10:30,

3. Complete Schedule A, Part 2, as

DHL Express 12:00, DHL Express

If the donor died during 2016, the

explained in the instructions for that

Worldwide, DHL Express Envelope, DHL

executor must file the donor's 2016 Form

schedule.

Import Express 10:30, DHL Import

709 not later than the earlier of:

-4-

Instructions For Form 709 - 2016 Page 4

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