Instructions For Form 709 - 2016 Page 7

ADVERTISEMENT

You can only apply the election to a
you made during the calendar year while
Contributions to QTPs do not
maximum of $70,000. You must report all
you were married, even if the gift's value
qualify for the education
!
of your 2016 QTP contributions for any
will be less than $14,000 after it is split in
exclusion.
single person that exceed $70,000 (in
column G of Part 1, 2, or 3 of Schedule A.
CAUTION
addition to any other gifts you made to that
How To Complete Parts 1, 2,
Gifts made by spouse. If you elected
person).
gift splitting and your spouse made gifts,
and 3
list those gifts in the space below “Gifts
For each of the 5 years, you report in
After you determine which gifts you made
made by spouse” in Part 1, 2, or 3. Report
Part 1 of Schedule A one-fifth (20%) of the
in 2016 that are subject to the gift tax, list
these gifts in the same way you report gifts
amount for which you made the election.
them on Schedule A. You must divide
you made.
In column E of Part 1 (Schedule A) list the
these gifts between:
date of the gift as the calendar year for
Gifts to Your Spouse
1. Part 1—those subject only to the
which you are deemed to have made the
Except for the gifts described below, you
gift tax (gifts made to nonskip
gift (that is, the year of the current Form
persons—see Part 1—Gifts Subject Only
do not need to enter any of your gifts to
709 you are filing). Do not list the actual
to Gift Tax),
your spouse on Schedule A.
year of contribution for subsequent years.
2. Part 2—those subject to both the
Terminable interests. Terminable
However, if in any of the last 4 years of
gift and GST taxes (gifts made to skip
interests are defined in the instructions to
the election, you did not make any other
persons—see Gifts Subject to Both Gift
Part 4, line 4. If all the terminable interests
gifts that would require you to file a Form
and GST Taxes and Part 2—Direct Skips),
you gave to your spouse qualify as life
709, you do not need to file Form 709 to
and
estates with power of appointment
report that year's portion of the election
(defined under Life estate with power of
3. Part 3—those subject only to the
amount.
appointment), you do not need to enter
gift tax at this time but which could later be
Example. In 2016, D contributed
any of them on Schedule A.
subject to GST tax (gifts that are indirect
$100,000 to a QTP for the benefit of her
skips, see Part 3—Indirect Skips).
However, if you gave your spouse any
son. D elects to treat $70,000 of this
terminable interest that does not qualify as
If you need more space, attach a
contribution as having been made ratably
a life estate with power of appointment,
separate sheet using the same format as
over a 5-year period. Accordingly, for
you must report on Schedule A all gifts of
Schedule A.
2016, D reports the following.
terminable interests you made to your
Use the following guidelines when
spouse during the year.
entering gifts on Schedule A.
$30,000
(the amount of the contribution
TIP
Charitable remainder trusts. If you
that exceeded $70,000)
make a gift to a charitable remainder trust
1
Enter a gift only once—in Part 1, Part 2,
+ $14,000
(the
portion from the election)
5
and your spouse is the only noncharitable
or Part 3.
the total gift to her son listed in
beneficiary (other than yourself), the
$44,000
Do not enter any gift or part of a gift that
Part 1 of Schedule A for 2016
interest you gave to your spouse is not
qualified for the political organization,
considered a terminable interest and,
educational, or medical exclusion.
therefore, should not be shown on
Enter gifts under “Gifts made by
In 2017, D gives a gift of $20,000 cash
Schedule A. See section 2523(g)(1). For
spouse” only if you have chosen to split
to her niece and no other gifts. On her
definitions and rules concerning these
gifts with your spouse and your spouse is
2017 Form 709, D reports in Part 1 of
trusts, see section 2056(b)(8)(B).
required to file a Form 709 (see Part
Schedule A the $20,000 gift to her niece
Future interest. Generally, you should
1—General Information, Lines 12–18. Split
and a $14,000 gift to her son (the one-fifth
Gifts).
not report a gift of a future interest to your
portion of the 2016 gift that is treated as
In column F, enter the full value of the
spouse unless the future interest is also a
made in 2017). In column E of Part 1
gift (including those made by your spouse,
terminable interest that is required to be
(Schedule A), D lists “2017” as the date of
reported as described earlier. However, if
if applicable). If you have chosen to split
the gift.
you gave a gift of a future interest to your
gifts, that one-half portion of the gift is
D makes no gifts in 2018, 2019, or
entered in column G.
spouse and you are required to report the
2020. She is not required to file Form 709
gift on Form 709 because you gave the
in any of those years to report the one-fifth
Gifts to Donees Other Than
present interest to a donee other than your
portion of the QTP gift because she is not
spouse, then you should enter the entire
Your Spouse
otherwise required to file Form 709.
gift, including the future interest given to
You must always enter all gifts of future
your spouse, on Schedule A. You should
You make the election by checking the
interests that you made during the
use the rules under Gifts Subject to Both
box on line B at the top of Schedule A.
calendar year regardless of their value.
Gift and GST Taxes, later, to determine
The election must be made for the
whether to enter the gift on Schedule A,
Gift splitting not elected. If the total gifts
calendar year in which the contribution is
Part 1, Part 2, or Part 3.
of present interests to any donee are more
made. Also attach an explanation that
than $14,000 in the calendar year, then
includes the following.
Spouses who are not U.S. citizens. If
you must enter all such gifts that you
The total amount contributed per
your spouse is not a U.S. citizen and you
made during the year to or on behalf of
individual beneficiary.
gave him or her a gift of a future interest,
that donee, including those gifts that will
The amount for which the election is
you must report on Schedule A all gifts to
be excluded under the annual exclusion. If
being made.
your spouse for the year. If all gifts to your
the total is $14,000 or less, you need not
The name of the individual for whom the
spouse were present interests, do not
enter on Schedule A any gifts (except gifts
contribution was made.
report on Schedule A any gifts to your
of future interests) that you made to that
spouse if the total of such gifts for the year
If you are electing gift splitting, apply
donee. Enter these gifts in the top half of
does not exceed $148,000 and all gifts in
the gift-splitting rules before applying the
Part 1, 2, or 3, as applicable.
excess of $14,000 would qualify for a
QTP rules. Each spouse would then
marital deduction if your spouse were a
Gift splitting elected. Enter on
decide individually whether to make this
U.S. citizen (see the instructions for
Schedule A the entire value of every gift
QTP election.
-7-

ADVERTISEMENT

00 votes

Related Articles

Related forms

Related Categories

Parent category: Financial