Gift tax form 709 for property

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Topic Author
coffeebean
Posts: 11
Joined: Tue Feb 09, 2010 9:21 pm

Gift tax form 709 for property

Post by coffeebean » Thu Mar 14, 2019 12:39 pm

Hello Bogleheads -

I would appreciate your thoughts on Form 709 because I am getting more confused by the IRS instructions. Would you please help me figure out if my spouse needs to consent to split the gift and fill out a Form 709?

My spouse and I were joint tenants on 2 lots of land which were gifted as present interests to my mom and dad in Sept 2018. Fair market value was $30k.

I see conflicting information on the IRS instructions where 1) each spouse must file 709 if property held as joint tenants and 2) an exception for consenting spouse where only one spouse made any gifts, the total value of these gifts do not exceed 30k, and all gifts were of present interests.

So, in this situation, does my spouse need to consent to split the gift and fill out form 709?

Thanks so much!
coffeebean

Gopherrube1
Posts: 15
Joined: Tue Dec 22, 2015 10:04 am

Re: Gift tax form 709 for property

Post by Gopherrube1 » Thu Mar 14, 2019 12:43 pm

do you live in a community property state? My instinct is that you will have to file 2 709's and consent to gift split on each.

Topic Author
coffeebean
Posts: 11
Joined: Tue Feb 09, 2010 9:21 pm

Re: Gift tax form 709 for property

Post by coffeebean » Thu Mar 14, 2019 2:27 pm

Hi Gopherrube1 -

We live in AL, and the lots were located in TN. Neither state is a community property state.

Topic Author
coffeebean
Posts: 11
Joined: Tue Feb 09, 2010 9:21 pm

Re: Gift tax form 709 for property

Post by coffeebean » Sun Mar 24, 2019 12:50 pm

I've been wrestling with this form for several days, and I have just 2 more questions :happy which I ask the Bogleheads for help...please?

1) Schedule A Part 4 Taxable Gift Reconciliation on page 3 - Lines 1 and 2...I don't know which amount to write?
Line 1 total value of gifts by donor
IRS instructions say to enter value of gift attributable to spouse filing...OK...this amount for me is 15K
However, on the form, it says add totals from column H parts 1,2, and 3...OK...this amount is 30K

Line 2 total annual exclusion
IRS instructions say 15K, but I have 2 donees, so this amount should be 30K

I saw the 2009 Obama 709 example - 2 donors, 2 donees, and lines 1 and 2 each had 24K typed (total gifts given by 2 donors and 2 x annual exclusion)

So, do I put 15K or 30K on Lines 1 and 2?

2) Schedule D Part 2 - GST exemption reconciliation on page 5

Do I fill this part out to document the exemption available for future transfers even though I did not have gifts in Schedule A part 2 and 3 nor schedule B? Does everyone fill out this section?

Thanks for your help!
coffeebean

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