Gift tax form 709

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LITeacher
Posts: 107
Joined: Mon Aug 07, 2017 11:29 pm

Gift tax form 709

Post by LITeacher »

Hi everyone,

Two questions:
1- is the donor the only one who fills out form 709 if they gift over 15k to a person? Or does the recipient have to fill it out too?

2- is the 11.4 million limit for gift taxes separate from the estate tax limit? For instance if someone is worth 20 million, can they gift 10 million prior to passing and leave 10 milllion after passing without paying the federal estate taxes (prior to 2025 of course)? Or does the 11.4 count for both gifts and estate?
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OAG
Posts: 1200
Joined: Sat Mar 03, 2007 11:54 am
Location: Currently Central Ohio, USA

Re: Gift tax form 709

Post by OAG »

Question 1 709 completed only the the DONOR

Question 2 BTSOOM I will defer to the experts.
OAG=Old Army Guy. Retired CW4 USA (US Army) in 1979 21 years of service @ 38.
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TomatoTomahto
Posts: 11940
Joined: Mon Apr 11, 2011 1:48 pm

Re: Gift tax form 709

Post by TomatoTomahto »

They can gift whatever doesn’t require a 709 form and not have it count against the Federal exclusion (but not necessarily State exclusion), but even with couple gifting to couples, that’s $60k/ year, so it doesn’t work. Still, every bit helps, so we’ve been giving “early inheritances” to our heirs.

Unlucky.
I get the FI part but not the RE part of FIRE.
CompareContrast
Posts: 48
Joined: Sun Sep 05, 2010 9:08 pm

Re: Gift tax form 709

Post by CompareContrast »

The 11.4 million dollar limit is a combined one for gift and estate purposes. (In addition, you can give up to $15,000 to a single person per year without using any of your lifetime exemption). There's a sunset clause: after 2025, the 11.4 million shifts down to $5.49 million, unless congress extends it.

Citation: https://www.schwab.com/resource-center/ ... me-gifting
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