Instructions For Form 709 - 2016 (Page 6 of 19) in pdf

Line 19. Application of DSUE

Was domiciled in a possession of the

year and give the date you were married,

United States,

divorced, or widowed.

Amount

Was a U.S. citizen, and

Consent of Spouse

If the donor is a citizen or resident of the

Became a U.S. citizen only because he

United States and his or her spouse died

Your spouse must sign the consent for

or she was a citizen of a possession or

after December 31, 2010, the donor may

your gift-splitting election to be valid. The

was born or resided in a possession.

be eligible to use the deceased spouse's

consent may generally be signed at any

Lines 12–18. Split Gifts

unused exclusion (DSUE) amount. The

time after the end of the calendar year.

executor of his or her spouse's estate

However, there are two exceptions.

A married couple may not file a

must have elected on Form 706 to allow

joint gift tax return. However, if

1. The consent may not be signed

use of the unused exclusion amount. See

after reading the instructions

after April 15 following the end of the year

instructions for Form 706, Part

CAUTION

below, you and your spouse agree to split

in which the gift was made. But, if neither

6—Portability of Deceased Spousal

your gifts, you should file both of your

you nor your spouse has filed a gift tax

Unused Exclusion. If the executor of the

individual gift tax returns together (that is,

return for the year on or before that date,

estate made this election, attach the first

in the same envelope) to help the IRS

the consent must be made on the first gift

four pages of the Form 706 filed by the

process the returns and to avoid

tax return for the year filed by either of

estate. Include any attachments related to

correspondence from the IRS.

you.

DSUE that were filed with Form 706 and

2. The consent may not be signed

calculations of any adjustments to the

If you and your spouse agree, all gifts

after a notice of deficiency for the gift tax

DSUE amount like audit reports or

(including gifts of property held with your

for the year has been sent to either you or

previously filed Forms 709. See also

spouse as joint tenants or tenants by the

your spouse.

section 2010(c)(4) and related regulations.

entirety) either of you make to third parties

during the calendar year will be

The executor for a deceased spouse or

Using the checkboxes provided,

considered as made one-half by each of

the guardian for a legally incompetent

indicate whether the donor is applying or

you if:

spouse may sign the consent.

has applied a DSUE amount from a

You and your spouse were married to

predeceased spouse to gifts reported on

one another at the time of the gift;

When the Consenting Spouse

this or a previous Form 709. If so,

If divorced or widowed after the gift, you

complete Schedule C before going to Part

Must Also File a Gift Tax Return

did not remarry during the rest of the

2—Tax Computation.

calendar year;

In general, if you and your spouse elect

Neither of you was a nonresident not a

gift splitting, then both spouses must file

Schedule A. Computation

citizen of the United States at the time of

his or her own individual, gift tax return.

the gift; and

of Taxable Gifts

You did not give your spouse a general

However, only one spouse must file a

Do not enter on Schedule A any gift or part

power of appointment over the property

return if the requirements of either of the

of a gift that qualifies for the political

interest transferred.

exceptions below are met. In these

organization, educational, or medical

exceptions, gifts means transfers (or parts

If you transferred property partly to your

exclusions. In the instructions below, gifts

of transfers) that do not qualify for the

spouse and partly to third parties, you can

means transfers (or parts of transfers) that

political organization, educational, or

only split the gifts if the interest transferred

do not qualify for the political organization,

medical exclusions.

to the third parties is ascertainable at the

educational, or medical exclusions.

time of the gift.

Exception 1. During the calendar year:

Line A. Valuation Discounts

Only one spouse made any gifts,

The consent is effective for the entire

The total value of these gifts to each

If the value of any gift you report in either

calendar year; therefore, all gifts made by

third-party donee does not exceed

Part 1, Part 2, or Part 3 of Schedule A

both you and your spouse to third parties

$28,000, and

includes a discount for lack of

during the calendar year (while you were

All of the gifts were of present interests.

marketability, a minority interest, a

married) must be split.

fractional interest in real estate, blockage,

Exception 2. During the calendar year:

If the consent is effective, the liability

market absorption, or for any other

Only one spouse (the donor spouse)

for the entire gift tax of each spouse is joint

reason, answer “Yes” to the question at

made gifts of more than $14,000 but not

and several.

the top of Schedule A. Also, attach an

more than $28,000 to any third-party

explanation giving the basis for the

If you meet these requirements and

donee,

want your gifts to be considered made

claimed discounts and showing the

The only gifts made by the other

one-half by you and one-half by your

amount of the discounts taken.

spouse (the consenting spouse) were gifts

spouse, check the “Yes” box on line 12;

of not more than $14,000 to third-party

Line B. Qualified Tuition

complete lines 13 through 17; and have

donees other than those to whom the

Programs (529 Plans or

your spouse sign the consent on line 18.

donor spouse made gifts, and

Programs)

All of the gifts by both spouses were of

If you are not married or do not wish to

present interests.

split gifts, skip to line 19.

If in 2016, you contributed more than

$14,000 to a Qualified Tuition Plan (QTP)

If either of the above exceptions is met,

Line 15. If you were married to one

on behalf of any one person, you may

only the donor spouse must file a return

another for all of 2016, check the “Yes”

elect to treat up to $70,000 of the

and the consenting spouse signifies

box and skip to line 17. If you were

contribution for that person as if you had

consent on that return.

married for only part of the year, check the

made it ratably over a 5-year period. The

Specific instructions for Part 2—Tax

“No” box and go to line 16. If you were

election allows you to apply the annual

Computation are discussed later. Because

divorced or widowed after you made the

exclusion to a portion of the contribution in

you must complete Schedules A, B, C,

gift, you cannot elect to split gifts if you

each of the 5 years, beginning in 2016.

and D to fill out Part 2, you will find

remarried before the end of 2016.

You can make this election for as many

instructions for these schedules later.

Line 16. Check the box that explains the

separate people as you made QTP

change in your marital status during the

contributions.

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Instructions For Form 709 - 2016 Page 6

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