Form 709: United States Gift (and Generation-Skipping Transfer) Tax Return

Form 709 is generally completed by gathering the donor’s financial and property records, identifying the donor and recipients, reporting applicable gifts and transfers, determining applicable exclusions and deductions, reporting prior gifts and other required information, completing applicable schedules, and reviewing the completed return before submission.

The basic process is to gather gift and tax records, enter donor information, identify recipients, describe transferred property, report applicable values, apply applicable exclusions and deductions, complete generation-skipping transfer information when applicable, review the return, and submit it according to the applicable filing requirements. The donor should retain a copy of Form 709 and supporting records.

Section 1

Enter the donor’s identifying information. This generally includes the donor’s name, address, Social Security number, and other applicable information.

The information should generally agree with the donor’s tax and financial records. The donor should review the identifying information carefully before completing the remaining sections.

Section 2

Enter information about the recipients of the gifts. This generally includes the recipient’s name, address, relationship to the donor, and other applicable information.

The recipient information should generally agree with the donor’s gift records and supporting documentation. The donor should review recipient information carefully to help ensure that each applicable recipient is properly identified.

Section 3

Describe the gifts or transfers made during the applicable period. This generally includes a description of the property, date of the gift, recipient, and other applicable information.

The description should generally be clear enough to identify the property or transfer being reported. Supporting records such as transfer documents, account statements, agreements, or other documentation should generally be retained.

Section 4

Report the value of the transferred property. This generally involves reporting the applicable value of cash, real estate, securities, business interests, personal property, or other transferred assets.

The reported values should generally be supported by financial records, account statements, appraisals, valuation records, transfer documents, or other applicable documentation. The donor should retain records supporting the values reported.

Section 5

Report applicable exclusions and deductions. This may include available gift tax exclusions, charitable deductions, marital deductions, or other applicable amounts.

The amounts reported should generally be supported by gift records, recipient information, charitable documentation, marital information, and other applicable records. Only exclusions and deductions that apply to the gift should generally be included.

Section 6

Report applicable gift splitting information. When applicable, certain gifts may be treated as made by both spouses under the applicable requirements.

The donor should review the applicable gift information and spouse-related records carefully when determining whether gift splitting applies. Supporting documentation should generally be retained for the information reported.

Section 7

Report applicable prior gifts and transfers. Prior gifts may affect the federal gift tax calculation and may need to be considered when completing the return.

The information should generally be supported by prior Form 709 returns, gift records, transfer documents, and other applicable tax records. The donor should review prior gift information carefully to help ensure that applicable amounts are properly reported.

Section 8

Complete applicable generation-skipping transfer tax information. This section applies when the donor makes certain transfers that may involve generation-skipping transfer tax reporting.

The information should generally be supported by trust documents, recipient information, transfer records, valuation records, and other applicable documentation. Only information that applies to the transfer should generally be included.

Section 9

Complete applicable schedules and supporting information. The schedules required may depend on the type of property, gift, deduction, exclusion, trust, generation-skipping transfer, or other circumstances.

The donor should include only applicable schedules and information and should retain documentation supporting the amounts reported. Each applicable schedule should generally be reviewed for consistency with the main return.

Section 10

Review the completed Form 709 and related schedules. Check the donor information, recipient information, gifts, property descriptions, values, exclusions, deductions, prior gifts, gift splitting information, generation-skipping transfer information, and supporting documentation.

The completed return should generally be reviewed for consistency and completeness before submission. The donor should retain a complete copy of the return and supporting records for future reference.

Final Review

Review Form 709 after completing all applicable sections. Check the donor information, recipient information, gift dates, property descriptions, property values, exclusions, deductions, prior gifts, gift splitting information, generation-skipping transfer information, schedules, supporting records, and final amounts reported.

A final review can help identify calculation or reporting errors before the return is submitted. Donors should retain Form 709, appraisals, financial statements, transfer documents, gift records, prior gift tax returns, recipient information, and supporting tax records with their records.