Can you amend form 709

The consent may not be signed after April 15 following the end of the year in which the gift was made. But if neither you nor your spouse has filed a gift tax return for the year on or before that date, the consent must be made on the first gift tax return for the year filed by either of you.

The consent may not be signed after a notice of deficiency for the gift tax for the year has been sent to either you or your spouse. The executor for a deceased spouse or the guardian for a legally incompetent spouse may sign the consent.

In general, if you and your spouse elect gift splitting, then both spouses must file his or her own individual gift tax return. However, only one spouse must file a return if the requirements of either of the exceptions below are met. In these exceptions, gifts means transfers or parts of transfers that do not qualify for the political organization, educational, or medical exclusions. If either of the above exceptions is met, only the donor spouse must file a return and the consenting spouse signifies consent on that return.

Specific instructions for Part 2—Tax Computation are discussed later. Because you must complete Schedules A, B, C, and D to fill out Part 2, you will find instructions for these schedules later. If the donor is a citizen or resident of the United States and his or her spouse died after December 31, , the donor may be eligible to use the deceased spouse's unused exclusion DSUE amount.

The executor of his or her spouse's estate must have elected on Form to allow use of the unused exclusion amount. If the executor of the estate made this election, attach the first four pages of Form filed by the estate. See also section c 4 and related regulations. Using the checkboxes provided, indicate whether the donor is applying or has applied a DSUE amount from a predeceased spouse to gifts reported on this or a previous Form Do not enter on Schedule A any gift or part of a gift that qualifies for the political organization, educational, or medical exclusions.

In the instructions below, gifts means transfers or parts of transfers that do not qualify for the political organization, educational, or medical exclusions. If the value of any gift you report in either Part 1, Part 2, or Part 3 of Schedule A includes a discount for lack of marketability, a minority interest, a fractional interest in real estate, blockage, market absorption, or for any other reason, answer "Yes" to the question at the top of Schedule A.

Also attach an explanation giving the basis for the claimed discounts and showing the amount of the discounts taken. The election allows you to apply the annual exclusion to a portion of the contribution in each of the 5 years, beginning in You can make this election for as many separate people as you made QTP contributions.

In column E of Part 1 Schedule A , list the date of the gift as the calendar year for which you are deemed to have made the gift that is, the year of the current Form you are filing.

Do not list the actual year of contribution for subsequent years. However, if in any of the last 4 years of the election, you did not make any other gifts that would require you to file a Form , you do not need to file Form to report that year's portion of the election amount.

Accordingly, for , D reports the following. D makes no gifts in , , or She is not required to file Form in any of those years to report the one-fifth portion of the QTP gift because she is not otherwise required to file Form You make the election by checking the box on line B at the top of Schedule A. The election must be made for the calendar year in which the contribution is made. Also attach an explanation that includes the following.

If you are electing gift splitting, apply the gift-splitting rules before applying the QTP rules. Each spouse would then decide individually whether to make this QTP election.

Contributions to QTPs do not qualify for the education exclusion. After you determine which gifts you made in that are subject to the gift tax, list them on Schedule A. You must divide these gifts between:. Part 1—those subject only to the gift tax gifts made to nonskip persons—see Part 1—Gifts Subject Only to Gift Tax , later ,.

Part 3—those subject only to the gift tax at this time but which could later be subject to GST tax gifts that are indirect skips—see Part 3—Indirect Skips and Other Transfers in Trust , later. If you need more space, attach a separate sheet using the same format as Schedule A. Use the following guidelines when entering gifts on Schedule A.

Do not enter any gift or part of a gift that qualified for the political organization, educational, or medical exclusion. Enter gifts under "Gifts made by spouse" only if you have chosen to split gifts with your spouse and your spouse is required to file a Form see Part 1—General Information, Lines 12— Split Gifts, earlier. In column F, enter the full value of the gift including those made by your spouse, if applicable.

If you have chosen to split gifts, that one-half portion of the gift is entered in column G. You must always enter all gifts of future interests that you made during the calendar year regardless of their value. Enter these gifts in the top half of Part 1, 2, or 3, as applicable. If you elected gift splitting and your spouse made gifts, list those gifts in the space below "Gifts made by spouse" in Part 1, 2, or 3. Report these gifts in the same way you report gifts you made.

Except for the gifts described below, you do not need to enter any of your gifts to your spouse on Schedule A. Terminable interests are defined in the instructions for Part 4, line 4. If all the terminable interests you gave to your spouse qualify as life estates with power of appointment defined under Life estate with power of appointment , later , you do not need to enter any of them on Schedule A.

However, if you gave your spouse any terminable interest that does not qualify as a life estate with power of appointment, you must report on Schedule A all gifts of terminable interests you made to your spouse during the year.

If you make a gift to a charitable remainder trust and your spouse is the only noncharitable beneficiary other than yourself , the interest you gave to your spouse is not considered a terminable interest and, therefore, should not be shown on Schedule A. See section g 1. For definitions and rules concerning these trusts, see section b 8 B.

Generally, you should not report a gift of a future interest to your spouse unless the future interest is also a terminable interest that is required to be reported as described earlier.

However, if you gave a gift of a future interest to your spouse and you are required to report the gift on Form because you gave the present interest to a donee other than your spouse, then you should enter the entire gift, including the future interest given to your spouse, on Schedule A. If your spouse is not a U. The GST tax you must report on Form is that imposed only on inter vivos direct skips.

An inter vivos direct skip is a transfer that is:. A gift is "subject to the gift tax" if you are required to list it on Schedule A of Form However, if you make a nontaxable gift which is a direct skip to a trust for the benefit of an individual, this transfer is subject to the GST tax unless:. During the lifetime of the beneficiary, no corpus or income may be distributed to anyone other than the beneficiary; and. If the beneficiary dies before the termination of the trust, the assets of the trust will be included in the gross estate of the beneficiary.

If the property transferred in the direct skip would have been includible in the donor's estate if the donor died immediately after the transfer, see Transfers Subject to an Estate Tax Inclusion Period ETIP , earlier. To determine if a gift "is of an interest in property" and "is made to a skip person," you must first determine if the donee is a "natural person" or a "trust," as defined below. For purposes of the GST tax, a trust includes not only an ordinary trust, but also any other arrangement other than an estate that although not explicitly a trust, has substantially the same effect as a trust.

For example, a trust includes life estates with remainders, terms for years, and insurance and annuity contracts. A transfer of property that is conditional on the occurrence of an event is a transfer in trust.

If a gift is made to a natural person, it is always considered a gift of an interest in property for purposes of the GST tax. If a gift is made to a trust, a natural person will have an interest in the property transferred to the trust if that person either has a present right to receive income or corpus from the trust such as an income interest for life or is a permissible current recipient of income or corpus from the trust for example, possesses a general power of appointment.

A donee, who is a natural person, is a skip person if that donee is assigned to a generation that is two or more generations below the generation assignment of the donor. See Determining the Generation of a Donee , later. A donee that is a trust is a skip person if all the interests in the property transferred to the trust as defined above are held by skip persons. A trust will also be a skip person if there are no interests in the property transferred to the trust held by any person, and future distributions or terminations from the trust can be made only to skip persons.

A nonskip person is any donee who is not a skip person. If the donee is a lineal descendant of a grandparent of the donor for example, the donor's cousin, niece, nephew, etc.

If the donee is a lineal descendant of a grandparent of a spouse or former spouse of the donor, the number of generations between the donor and the descendant donee is determined by subtracting the number of generations between the grandparent and the spouse or former spouse from the number of generations between the grandparent and the descendant donee.

A person who at any time was married to a person described in 1 or 2 above is assigned to the generation of that person. A person who at any time was married to the donor is assigned to the donor's generation.

A person who is not assigned to a generation according to 1 , 2 , 3 , or 4 above is assigned to a generation based on his or her birth date as follows.

If more than one of the rules for assigning generations applies to a donee, that donee is generally assigned to the youngest of the generations that would apply. If an estate, trust, partnership, corporation, or other entity other than governmental entities and certain charitable organizations and trusts, described in sections a 2 and b 2 , as discussed later is a donee, then each person who indirectly receives the gift through the entity is treated as a donee and is assigned to a generation as explained in the above rules.

Charitable organizations and trusts, described in sections a 2 and b 2 , and governmental entities are assigned to the donor's generation. Transfers to such organizations are therefore not subject to the GST tax.

These gifts should always be listed in Part 1 of Schedule A. Notice permits a taxpayer to reduce his or her GST exemption allocated to transfers that were made to or for the benefit of transferees whose generation assignment is changed as a result of the Windsor decision. For additional information, go to IRS. Gifts in the form of charitable remainder annuity trusts, charitable remainder unitrusts, and pooled income funds are not transfers to skip persons and therefore are not direct skips.

You should always list these gifts in Part 1 of Schedule A even if all of the life beneficiaries are skip persons. If you made a gift to your grandchild and at the time you made the gift, the grandchild's parent who is your or your spouse's or your former spouse's child is deceased, then for purposes of generation assignment, your grandchild is considered to be your child rather than your grandchild.

Your grandchild's children will be treated as your grandchildren rather than your great-grandchildren. This rule is also applied to your lineal descendants below the level of grandchild. For example, if your grandchild is deceased, your great-grandchildren who are lineal descendants of the deceased grandchild are considered your grandchildren for purposes of the GST tax.

This special rule may also apply in other cases of the death of a parent of the transferee. If property is transferred to a descendant of a parent of the transferor and that person's parent who is a lineal descendant of the parent of the transferor is deceased at the time the transfer is subject to gift or estate tax, then for purposes of generation assignment, the individual is treated as if he or she is a member of the generation that is one generation below the lower of:.

The generation assignment of the youngest living ancestor of the individual who is also a descendant of the parent of the transferor. The same rules apply to the generation assignment of any descendant of the individual.

This rule does not apply to a transfer to an individual who is not a lineal descendant of the transferor if the transferor at the time of the transfer has any living lineal descendants.

If any transfer of property to a trust would have been a direct skip except for this generation assignment rule, then the rule also applies to transfers from the trust attributable to such property.

For assigning individuals to generations for purposes of the GST tax, any individual who dies no later than 90 days after a transfer occurring by reason of the death of the transferor is treated as having predeceased the transferor.

The day rule applies to transfers occurring on or after July 18, You give your house to your daughter for her life with the remainder then passing to her children. This gift is made to a "trust" even though there is no explicit trust instrument. The interest in the property transferred the present right to use the house is transferred to a nonskip person your daughter. Therefore, the trust is not a skip person because there is an interest in the transferred property that is held by a nonskip person, and the gift is not a direct skip.

The transfer is an indirect skip, however, because on the death of the daughter, a termination of her interest in the trust will occur that may be subject to the GST tax. This gift is a direct skip that is not made in trust.

You should list it in Part 2 of Schedule A. You establish a trust that is required to accumulate income for 10 years and then pay its income to your grandchildren for their lives and upon their deaths distribute the corpus to their children. Because the trust has no current beneficiaries, there are no present interests in the property transferred to the trust.

All of the persons to whom the trust can make future distributions including distributions upon the termination of interests in property held in trust are skip persons that is, your grandchildren and great-grandchildren. Therefore, the trust itself is a skip person and you should list the gift in Part 2 of Schedule A. You establish a trust that pays all of its income to your grandchildren for 10 years. At the end of 10 years, the corpus is to be distributed to your children.

Because for this purpose interests in trusts are defined only as present interests, all of the interests in this trust are held by skip persons the children's interests are future interests. Therefore, the trust is a skip person and you should list the entire amount you transferred to the trust in Part 2 of Schedule A even though some of the trust's ultimate beneficiaries are nonskip persons.

List in Part 1 gifts subject only to the gift tax. Generally, all of the gifts you made to your spouse that are required to be listed, as described earlier , to your children, and to charitable organizations are not subject to the GST tax and should therefore be listed only in Part 1. Number and describe all gifts including charitable, public, and similar gifts in the columns provided in Schedule A.

Describe each gift in enough detail so that the property can be easily identified, as explained below. Exchanges where listed or, if unlisted, give the location of the principal business office of the corporation; and. CUSIP number.

If preferred, give the issue, par value, quotation at which returned, and exact name of corporation;. If unlisted on a principal exchange, give the location of the principal business office of the corporation, the state in which incorporated, and the date of incorporation;. For interests in property based on the length of a person's life, give the date of birth of the person. If you transfer any interest in a closely held entity, provide the EIN of the entity.

Describe the interest that is creating the ETIP. See Schedule D. Computation of GST Tax , later. Show the basis you would use for income tax purposes if the gift were sold or exchanged. Generally, this means cost plus improvements, less applicable depreciation, amortization, and depletion. The value of a gift is the fair market value FMV of the property on the date the gift is made valuation date.

The FMV is the price at which the property would change hands between a willing buyer and a willing seller, when neither is forced to buy or to sell, and when both have reasonable knowledge of all relevant facts. FMV may not be determined by a forced sale price, nor by the sale price of the item in a market other than that in which the item is most commonly sold to the public.

The location of the item must be taken into account whenever appropriate. The FMV of a stock or bond whether listed or unlisted is the mean between the highest and lowest selling prices quoted on the valuation date. If only the closing selling prices are available, then the FMV is the mean between the quoted closing selling price on the valuation date and on the trading day before the valuation date. If there were no sales on the valuation date, figure the FMV as follows.

Find the mean between the highest and lowest selling prices on the nearest trading date before and the nearest trading date after the valuation date. Both trading dates must be reasonably close to the valuation date. Add or subtract whichever applies the prorated part of the difference to or from the mean price figured for the nearest trading date before the actual valuation date.

If no actual sales were made reasonably close to the valuation date, make the same computation using the mean between the bona fide bid and the asked prices instead of sales prices. If actual sales prices or bona fide bid and asked prices are available within a reasonable period of time before the valuation date but not after the valuation date, or vice versa, use the mean between the highest and lowest sales prices or bid and asked prices as the FMV.

Stock of close corporations or inactive stock must be valued on the basis of net worth, earnings, earning and dividend capacity, and other relevant factors. Generally, the best indication of the value of real property is the price paid for the property in an arm's-length transaction on or before the valuation date. If there has been no such transaction, use the comparable sales method.

In comparing similar properties, consider differences in the date of the sale, and the size, condition, and location of the properties, and make all appropriate adjustments. The value of all annuities, life estates, terms for years, remainders, or reversions is generally the present value on the date of the gift.

Sections and provide special valuation rules to determine the amount of the gift when a donor transfers an equity interest in a corporation or partnership section or makes a gift in trust section The rules only apply if, immediately after the transfer, the donor or an applicable family member holds an applicable retained interest in the corporation or partnership, or retains an interest in the trust.

For details, see sections and , and their regulations. If you elected to split gifts with your spouse and your spouse has given a gift s that is being split with you, enter in this area of Part 1 information on the gift s made by your spouse. If only you made gifts and you are splitting them with your spouse, do not make an entry in this area.

Generally, if you elect to split your gifts, you must split all gifts made by you and your spouse to third-party donees. The only exception is if you gave your spouse a general power of appointment over a gift you made.

For stock of close corporations or inactive stock, attach balance sheets, particularly the one nearest the date of the gift, and statements of net earnings or operating results and dividends paid for each of the 5 preceding years. In certain situations, for example, where the surrender value of the policy exceeds its replacement cost, the true economic value of the policy will be greater than the amount shown on line 59 of Form In these situations, report the full economic value of the policy on Schedule A.

See Rev. If the gift was made by means of a trust, attach a certified or verified copy of the trust instrument to the return on which you report your first transfer to the trust. However, to report subsequent transfers to the trust, you may attach a brief description of the terms of the trust or a copy of the trust instrument.

Also attach any appraisal used to determine the value of real estate or other property. If you do not attach this information, Schedule A must include a full explanation of how value was determined. List in Part 2 only those gifts that are currently subject to both the gift and GST taxes.

You must list the gifts in Part 2 in the chronological order that you made them. Number, describe, and value the gifts as described in the instructions for Part 1. If you made a transfer to a trust that was a direct skip, list the entire gift as one line entry in Part 2. If you elect under section b 3 to not have the automatic allocation rules of section b apply to a transfer, enter a check in column C next to the transfer.

You must also attach a statement to Form clearly describing the transaction and the extent to which the automatic allocation is not to apply. Reporting a direct skip on a timely filed Form and paying the GST tax on the transfer will qualify as such a statement.

Report all other gifts made during the year on Schedule A as you normally would. Some gifts made to trusts are subject only to gift tax at the time of the transfer but later may be subject to GST tax.

The GST tax could apply either at the time of a distribution from the trust, at the termination of the trust, or both. Section c defines indirect skips and applies special rules to the allocation of GST exemption to such transfers. In general, an indirect skip is a transfer of property that is subject to gift tax other than a direct skip and is made to a GST trust. A GST trust is a trust that could have a GST with respect to the transferor, unless the trust provides for certain distributions of trust corpus to nonskip persons.

See section c 3 B for details. List in Part 3 those gifts that are indirect skips as defined in section c or may later be subject to GST tax. This includes indirect skips for which election 2, described below, will be made in the current year or has been made in a previous year. You must list the gifts in Part 3 in the chronological order that you made them.

Section c provides for the automatic allocation of the donor's unused GST exemption to indirect skips. This section also sets forth three different elections you may make regarding the allocation of exemption. Election 1. You may elect not to have the automatic allocation rules apply to the current transfer made to a particular trust.

Election 2. You may elect not to have the automatic rules apply to both the current transfer and any and all future transfers made to a particular trust. Election 3. You may elect to treat any trust as a GST trust for purposes of the automatic allocation rules.

Election 1 is timely made if it is made on a timely filed gift tax return for the year the transfer was made or was deemed to have been made. Elections 2 and 3 may be made on a timely filed gift tax return for the year for which the election is to become effective.

To make one of these elections, check column C next to the transfer to which the election applies. You must also attach an explanation as described below. Ask questions, get answers, and join our large community of tax professionals. Sign In. Enter a search word. Turn off suggestions. Enter a user name or rank. Turn on suggestions. Showing results for.

Search instead for. Note: the annual gift tax exclusion amount is indexed for inflation. Because spouses may not file joint gift tax returns, each spouse would then report half the value of the gift on their respective Forms Future interest means that the recipient cannot actually possess, enjoy, or receive income from until sometime in the future.

Form Deadlines The filing deadline for IRS Form is the tax filing deadline of the year after the gift is completed. What Can Be Considered a Gift? In some instances, the tax code will treat loan transactions as gifts.

Form Instructions and Questions You can find more information about the situations that require Form to be filed and how to complete the document in the Form Instructions.

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