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Instructions for Form 709
Department of the Treasury
Internal Revenue Service
United States Gift (and Generation-Skipping Transfer) Tax Return
For gifts made during calendar year 2023
What's New
Section references are to the Internal Revenue Code unless
otherwise noted.
Contents
General Instructions . . . . . . . . . . . . . . . . . . . . .
Purpose of Form . . . . . . . . . . . . . . . . . . . . .
Who Must File . . . . . . . . . . . . . . . . . . . . . .
When To File . . . . . . . . . . . . . . . . . . . . . . .
Where To File . . . . . . . . . . . . . . . . . . . . . . .
Amending Form 709 . . . . . . . . . . . . . . . . . .
Adequate Disclosure . . . . . . . . . . . . . . . . . .
Penalties . . . . . . . . . . . . . . . . . . . . . . . . . .
Joint Tenancy . . . . . . . . . . . . . . . . . . . . . . .
Transfer of Certain Life Estates Received
From Spouse . . . . . . . . . . . . . . . . . . . . .
Specific Instructions . . . . . . . . . . . . . . . . . . . . .
Part 1—General Information . . . . . . . . . . . .
Schedule A. Computation of Taxable Gifts . .
Gifts Subject to Both Gift and GST Taxes . . .
Schedule B. Gifts From Prior Periods . . . . . .
Schedule C. Portability of Deceased Spousal
Unused Exclusion (DSUE) Amount and
Restored Exclusion Amount . . . . . . . . . . .
Schedule D. Computation of GST Tax . . . . . .
Part 2—Tax Computation (Page 1 of Form
709) . . . . . . . . . . . . . . . . . . . . . . . . . . .
Signature . . . . . . . . . . . . . . . . . . . . . . . . . .
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Future Developments
For the latest information about developments related to Form
709 and its instructions, such as legislation enacted after they
were published, go to IRS.gov/Form709.
For Gifts Made
Use Revision of
Form 709 Dated
After
and Before
–––––
January 1, 1982
November 1981
December 31, 1981
January 1, 1987
January 1987
December 31, 1986
January 1, 1989
December 1988
December 31, 1988
January 1, 1990
December 1989
December 31, 1989
October 9, 1990
October 1990
October 8, 1990
January 1, 1992
November 1991
December 31, 1992
January 1, 1998
December 1996
December 31, 1997
–––––
*
* Use the corresponding annual form.
6
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9
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• The annual gift exclusion for 2023 is $17,000. See Annual
Exclusion, later.
• For gifts made to spouses who are not U.S. citizens, the
annual exclusion has increased to $175,000. See
Nonresidents Not Citizens of the United States, later.
The top rate for gifts and generationskipping transfers remains at 40%. See Table for Computing
Gift Tax.
The basic credit amount for 2023 is $5,113,800. See Table
of Basic Exclusion and Credit Amounts.
The applicable exclusion amount consists of the basic
exclusion amount ($12,920,000 in 2023) and, in the case of
a surviving spouse, any unused exclusion amount of the last
deceased spouse (who died after December 31, 2010). The
executor of the predeceased spouse's estate must have
elected on a timely and complete Form 706 to allow the
donor to use the predeceased spouse's unused exclusion
amount.
Digital assets. A new question regarding digital assets
appears on Line 20. See Digital assets and Line 20. Digital
Assets, later, for information on transfers involving digital
assets. Do not leave this question unanswered. The
question must be answered by all taxpayers, not just
taxpayers who made transfers involving digital assets.
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Photographs of Missing Children
The IRS is a proud partner with the National Center for Missing &
Exploited Children® (NCMEC). Photographs of missing children
selected by the Center may appear in instructions on pages that
would otherwise be blank. You can help bring these children
home by looking at the photographs and calling
1-800-THE-LOST (1-800-843-5678) if you recognize a child.
General Instructions
Purpose of Form
Use Form 709 to report the following.
• Transfers subject to the federal gift and certain
generation-skipping transfer (GST) taxes and to figure the
tax due, if any, on those transfers.
• Allocation of the lifetime GST exemption to property
transferred during the transferor's lifetime. (For more details,
see Schedule D, Part 2—GST Exemption Reconciliation,
later, and Regulations section 26.2632-1.)
All gift and GST taxes must be figured and filed on a
calendar year basis. List all reportable gifts made during
CAUTION the calendar year on one Form 709. This means you
must file a separate return for each calendar year a reportable
gift is given (for example, a gift given in 2023 must be reported
on a 2023 Form 709). Do not file more than one Form 709 for any
1 calendar year.
!
How To Complete Form 709
1. Determine whether you are required to file Form 709.
Aug 18, 2023
Cat. No. 16784X
transferred part of your interest to someone other than a charity,
you must still file a return and report all of your gifts to charities.
2. Determine what gifts you must report.
3. Decide whether you and your spouse, if any, will elect to
split gifts for the year.
Note. See Pub. 526, Charitable Contributions, for more
information on identifying a qualified charity.
If you are required to file a return to report noncharitable gifts
and you made gifts to charities, you must include all of your gifts
to charities on the return.
4. Complete lines 1 through 19 of Part 1—General Information.
5. List each gift on Part 1, 2, or 3 of Schedule A, as
appropriate.
6. Complete Schedules B, C, and D, as applicable.
Transfers Subject to the Gift Tax
7. If the gift was listed on Part 2 or 3 of Schedule A, complete
the necessary portions of Schedule D.
Generally, the federal gift tax applies to any transfer by gift of real
or personal property, whether tangible or intangible, that you
made directly or indirectly, in trust, or by any other means.
8. Complete Schedule A, Part 4.
9. Complete Part 2—Tax Computation.
The gift tax applies not only to the free transfer of any kind of
property, but also to sales or exchanges, not made in the
ordinary course of business, where value of the money (or
property) received is less than the value of what is sold or
exchanged. The gift tax is in addition to any other tax, such as
federal income tax, paid or due on the transfer.
10. Sign and date the return.
!
CAUTION
Make sure to complete page 1 and the applicable
schedules in their entirety. Returns filed without entries in
each field will not be processed.
Remember, if you are splitting gifts, your spouse must
The exercise or release of a general power of appointment
may be a gift by the individual possessing the power. General
powers of appointment are those in which the holders of the
power can appoint the property under the power to themselves,
their creditors, their estates, or the creditors of their estates. To
qualify as a power of appointment, it must be created by
someone other than the holder of the power.
TIP sign line 18 in Part 1—General Information.
Who Must File
In general. If you are a citizen or resident of the United States,
you must file a gift tax return (whether or not any tax is ultimately
due) in the following situations.
• If you gave gifts to someone in 2023 totaling more than
$17,000 (other than to your spouse), you probably must file
Form 709. But see Transfers Not Subject to the Gift Tax and
Gifts to Your Spouse, later, for more information on specific
gifts that are not taxable.
• Certain gifts, called future interests, are not subject to the
$17,000 annual exclusion and you must file Form 709 even if
the gift was under $17,000. See Annual Exclusion, later.
• Spouses may not file a joint gift tax return. Each individual is
responsible to file a Form 709.
• You must file a gift tax return to split gifts with your spouse
(regardless of their amount) as described in Part 1—General
Information, later.
• If a gift is of community property, it is considered made
one-half by each spouse. For example, a gift of $100,000 of
community property is considered a gift of $50,000 made by
each spouse, and each spouse must file a gift tax return.
• Likewise, each spouse must file a gift tax return if they have
made a gift of property held by them as joint tenants or
tenants by the entirety.
• Only individuals are required to file gift tax returns. If a trust,
estate, partnership, or corporation makes a gift, the
individual beneficiaries, partners, or stockholders are
considered donors and may be liable for the gift and GST
taxes.
• The donor is responsible for paying the gift tax. However, if
the donor does not pay the tax, the person receiving the gift
may have to pay the tax.
• If a donor dies before filing a return, the donor's executor
must file the return.
The gift tax may also apply to forgiving a debt, to making an
interest-free or below-market interest rate loan, to transferring
the benefits of an insurance policy, to certain property
settlements in divorce cases, and to giving up some amount of
annuity in exchange for the creation of a survivor annuity.
Bonds that are exempt from federal income taxes are not
exempt from federal gift taxes.
Sections 2701 and 2702 provide rules for determining
whether certain transfers to a family member of interests in
corporations, partnerships, and trusts are gifts. The rules of
section 2704 determine whether the lapse of any voting or
liquidation right is a gift.
Digital assets. The gift tax applies to transfers of digital assets.
Digital assets are any digital representations of value that are
recorded on a cryptographically secured distributed ledger or
any similar technology. For example, digital assets include
non-fungible tokens (NFTs) and virtual currencies, such as
cryptocurrencies and stablecoins. If a particular asset has the
characteristics of a digital asset, it will be treated as a digital
asset for federal transfer tax purposes.
Gifts to your spouse. You must file a gift tax return if you made
any gift to your spouse of a terminable interest that does not
meet the exception described in Life estate with power of
appointment, later, or if your spouse is not a U.S. citizen and the
total gifts you made to your spouse during the year exceed
$175,000.
You must also file a gift tax return to make the qualified
terminable interest property (QTIP) election described under
Line 12. Election Out of QTIP Treatment of Annuities, later.
Except as described earlier, you do not have to file a gift tax
return to report gifts to your spouse regardless of the amount of
these gifts and regardless of whether the gifts are present or
future interests.
Who does not need to file. If you meet all of the following
requirements, you are not required to file Form 709.
• You made no gifts during the year to your spouse.
• You did not give more than $17,000 to any one donee.
• All the gifts you made were of present interests.
Gifts to charities. If the only gifts you made during the year are
deductible as gifts to charities, you do not need to file a return as
long as you transferred your entire interest in the property to
qualifying charities. If you transferred only a partial interest, or
Transfers Not Subject to the Gift Tax
Four types of transfers are not subject to the gift tax. These are:
• Transfers to political organizations,
• Transfers to certain exempt organizations,
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Instructions for Form 709 (2023)
• Payments that qualify for the educational exclusion, and
• Payments that qualify for the medical exclusion.
any interest in property, the property will be treated as if it had
never been transferred to that person. Accordingly, the
disclaimant is not regarded as making a gift to the person who
receives the property because of the qualified disclaimer.
Requirements. To be a qualified disclaimer, a refusal to
accept an interest in property must meet the following
conditions.
These transfers are not “gifts” as that term is used on Form 709
and its instructions. You need not file a Form 709 to report these
transfers and should not list them on Schedule A of Form 709 if
you do file Form 709.
Political organizations. The gift tax does not apply to a
transfer to a political organization (defined in section 527(e)(1))
for the use of the organization.
1. The refusal must be in writing.
2. The refusal must be received by the donor, the legal
representative of the donor, the holder of the legal title to the
property disclaimed, or the person in possession of the
property within 9 months after the later of:
Certain exempt organizations. The gift tax does not apply to a
transfer to any civic league or other organization described in
section 501(c)(4); any labor, agricultural, or horticultural
organization described in section 501(c)(5); or any business
league or other organization described in section 501(c)(6) for
the use of such organization, provided that such organization is
exempt from tax under section 501(a).
a. The day the transfer creating the interest is made, or
b. The day the disclaimant reaches age 21.
3. The disclaimant must not have accepted the interest or any
of its benefits.
Educational exclusion. The gift tax does not apply to an
amount you paid on behalf of an individual to a qualifying
domestic or foreign educational organization as tuition for the
education or training of the individual. A qualifying educational
organization is one that normally maintains a regular faculty and
curriculum and normally has a regularly enrolled body of pupils
or students in attendance at the place where its educational
activities are regularly carried on. See section 170(b)(1)(A)(ii)
and its regulations.
The payment must be made directly to the qualifying
educational organization and it must be for tuition. No
educational exclusion is allowed for amounts paid for books,
supplies, room and board, or other similar expenses that are not
direct tuition costs. To the extent that the payment to the
educational organization was for something other than tuition, it
is a gift to the individual for whose benefit it was made, and may
be offset by the annual exclusion if it is otherwise available.
Contributions to a qualified tuition program (QTP) on behalf of
a designated beneficiary do not qualify for the educational
exclusion. See Line B. Qualified Tuition Programs (529 Plans or
Programs) in the instructions for Schedule A, later.
4. As a result of the refusal, the interest must pass without any
direction from the disclaimant to either:
a. The spouse of the decedent, or
b. A person other than the disclaimant.
5. The refusal must be irrevocable and unqualified.
The 9-month period for making the disclaimer is generally
determined separately for each taxable transfer. For gifts, the
period begins on the date the transfer is a completed transfer for
gift tax purposes.
Annual Exclusion
The first $17,000 of gifts of present interest to each donee during
the calendar year is subtracted from total gifts in figuring the
amount of taxable gifts. For a gift in trust, each beneficiary of the
trust is treated as a separate donee for purposes of the annual
exclusion.
All of the gifts made during the calendar year to a donee are
fully excluded under the annual exclusion if they are all gifts of
present interest and they total $17,000 or less.
Medical exclusion. The gift tax does not apply to an amount
you paid on behalf of an individual to a person or institution that
provided medical care for the individual. The payment must be to
the care provider. The medical care must meet the requirements
of section 213(d) (definition of medical care for income tax
deduction purposes). Medical care includes expenses incurred
for the diagnosis, cure, mitigation, treatment, or prevention of
disease, or for the purpose of affecting any structure or function
of the body, or for transportation primarily for and essential to
medical care. Medical care also includes amounts paid for
medical insurance on behalf of any individual.
The medical exclusion does not apply to amounts paid for
medical care that are reimbursed by the donee's insurance. If
payment for a medical expense is reimbursed by the donee's
insurance company, your payment for that expense, to the extent
of the reimbursed amount, is not eligible for the medical
exclusion and you are considered to have made a gift to the
donee of the reimbursed amount.
To the extent that the payment was for something other than
medical care, it is a gift to the individual on whose behalf the
payment was made and may be offset by the annual exclusion if
it is otherwise available.
The medical and educational exclusions are allowed without
regard to the relationship between you and the donee. For
examples illustrating these exclusions, see Regulations section
25.2503-6(c).
Note. For gifts made to spouses who are not U.S. citizens, the
annual exclusion has been increased to $175,000, provided the
additional (above the $17,000 annual exclusion) $158,000 gift
would otherwise qualify for the gift tax marital deduction (as
described in the Schedule A, Part 4, line 4, instructions, later).
Note. Only the annual exclusion applies to gifts made to a
nonresident not a citizen of the United States. Deductions and
credits are not considered in determining gift tax liability for such
transfers.
A gift of a future interest cannot be excluded under the annual
exclusion.
A gift is considered a present interest if the donee has all
immediate rights to the use, possession, and enjoyment of the
property or income from the property.
A gift is considered a future interest if the donee's rights to the
use, possession, and enjoyment of the property or income from
the property will not begin until some future date. Future interests
include reversions, remainders, and other similar interests or
estates.
A contribution to a QTP on behalf of a designated beneficiary
is considered a gift of a present interest.
Qualified disclaimers. A donee's refusal to accept a gift is
called a disclaimer. If a person makes a qualified disclaimer of
Instructions for Form 709 (2023)
A gift to a minor is considered a present interest if all of the
following conditions are met.
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Transfers Subject to an Estate Tax Inclusion
Period (ETIP)
1. Both the property and its income may be expended by, or
for the benefit of, the minor before the minor reaches age
21.
Certain transfers receive special treatment if the transferred
property is subject to an ETIP. An ETIP is the period during
which, should the donor die, the value of transferred property
would be includible (other than by reason of section 2035) in the
gross estate of the donor or the spouse of the donor. For
transfers subject to an ETIP, GST tax reporting is required at the
close of the ETIP.
2. All remaining property and its income must pass to the
minor on the minor's 21st birthday.
3. If the minor dies before the age of 21, the property and its
income will be payable either to the minor's estate or to
whomever the minor may appoint under a general power of
appointment.
For example, if A transfers a house to a qualified personal
residence trust for a term of 10 years, with the remainder to A’s
granddaughter, the value of the house would be includible in A’s
estate if A died within the 10-year period during which A retained
an interest in the trust. In this case, a portion of the transfer to the
trust is a completed gift that must be reported on Part 1 of
Schedule A. The GST portion of the transfer would not be
reported until A died or A’s interest in the trust otherwise ended.
The gift of a present interest to more than one donee as joint
tenants qualifies for the annual exclusion for each donee.
Nonresidents Not Citizens of the United States
Nonresidents not citizens of the United States are subject to gift
and GST taxes for gifts of tangible property situated in the United
States. A person is considered a nonresident not a citizen of the
United States if, at the time the gift is made, (1) was not a citizen
of the United States and did not reside there, or (2) was
domiciled in a U.S. territory and acquired citizenship solely by
reason of birth or residence in the territory. Under certain
circumstances, they are also subject to gift and GST taxes for
gifts of intangible property. See section 2501(a).
Report the gift portion of such a transfer on Schedule A, Part
1, at the time of the actual transfer. Report the GST portion on
Schedule D, Part 1, but only at the close of the ETIP. Use Form
709 only to report those transfers where the ETIP closed due to
something other than the donor's death. (If the ETIP closed as
the result of the donor's death, report the transfer on Form 706,
United States Estate (and Generation-Skipping Transfer) Tax
Return.)
If you are a nonresident not a citizen of the United States who
made a gift subject to gift tax, you must file a gift tax return when
any of the following apply.
• You gave any gifts of future interests.
• Your gifts of present interests to any donee other than your
spouse total more than $17,000.
• Your outright gifts to your spouse who is not a U.S. citizen
total more than $175,000.
If you are filing this Form 709 solely to report the GST portion
of transfers subject to an ETIP, complete the form as you
normally would with the following exceptions.
1. Write “ETIP” at the top of page 1.
2. Complete only lines 1 through 6, 8, and 9 of Part
1—General Information.
Transfers Subject to the GST Tax
You must report on Form 709 the GST tax imposed on inter vivos
direct skips. An inter vivos direct skip is a transfer made during
the donor's lifetime that is:
• Subject to the gift tax,
• Of an interest in property, and
• Made to a skip person. (See Gifts Subject to Both Gift and
GST Taxes, later.)
3. Complete Schedule D. Complete columns B and C of
Schedule D, Part 1, as explained in the instructions for that
schedule.
A transfer is subject to the gift tax if it is required to be
reported on Schedule A of Form 709 under the rules contained
in the gift tax portions of these instructions, including the split gift
rules. Therefore, transfers made to political organizations,
transfers made to certain exempt organizations, transfers that
qualify for the medical or educational exclusions, transfers that
are fully excluded under the annual exclusion, and most transfers
made to your spouse are not subject to the GST tax.
TIP been made only at the close of the ETIP. Any allocation
4. Complete only lines 10 and 11 of Schedule A, Part 4.
5. Complete Part 2—Tax Computation.
A direct skip that is subject to an ETIP is deemed to have
of GST exemption to the transfer of property subject to
an ETIP, whether a direct skip or an indirect skip, shall not be
made until the close of the ETIP. The donor may prevent the
automatic allocation of GST exemption by electing out of the
automatic allocation rules at any time prior to the due date of the
Form 709 for the calendar year in which the close of the ETIP
occurs (whether or not any transfer was made in the calendar
year for which the Form 709 was filed, and whether or not a Form
709 would otherwise be required to be filed for that year).
Transfers subject to the GST tax are described in further
detail in the instructions.
Certain transfers, particularly transfers to a trust, that are
not subject to gift tax and are therefore not subject to the
CAUTION GST tax on Form 709 may be subject to the GST tax at a
later date. This is true even if the transfer is less than the
$17,000 annual exclusion. In this instance, you may want to
apply a GST exemption amount to the transfer on this return or
on a Notice of Allocation. However, you should be aware that a
GST exemption may be automatically allocated to the gift if the
trust that receives the gift is a “GST trust” (as defined under
section 2632(c)). For more information, see Schedule D, Part
2—GST Exemption Reconciliationand Schedule A, Part
3—Indirect Skips and Other Transfers in Trust, later.
Section 2701 Elections
!
The special valuation rules of section 2701 contain three
elections that you can make only with Form 709.
1. A transferor may elect to treat a qualified payment right that
the transferor holds (and all other rights of the same class)
as other than a qualified payment right.
2. A person may elect to treat a distribution right held by that
person in a controlled entity as a qualified payment right.
3. An interest holder may elect to treat as a taxable event the
payment of a qualified payment that occurs more than 4
years after its due date.
The elections described in (1) and (2) must be made on the
Form 709 that is filed by the transferor to report the transfer that
is being valued under section 2701. The elections are made by
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Instructions for Form 709 (2023)
attaching a statement to Form 709. For information on what must
be in the statement and for definitions and other details on the
elections, see section 2701 and Regulations section
25.2701-2(c).
!
CAUTION
Where To File
The election described in (3) may be made by attaching a
statement to the Form 709 filed by the recipient of the qualified
payment for the year the payment is received. If the election is
made on a timely filed return, the taxable event is deemed to
occur on the date the qualified payment is received. If it is made
on a late-filed return, the taxable event is deemed to occur on the
first day of the month immediately preceding the month in which
the return is filed. For information on what must be in the
statement and for definitions and other details on this election,
see section 2701 and Regulations section 25.2701-4(d).
File Form 709 at the following address.
Department of the Treasury
Internal Revenue Service Center
Kansas City, MO 64999
If using a PDS, file at this address.
Internal Revenue Service
333 W. Pershing Road
Kansas City, MO 64108
All of the elections may be revoked, but only with the consent
of the IRS.
When To File
Amending Form 709
Form 709 is an annual return.
If you find that you must change something on a return that has
already been filed, you should:
• File another Form 709;
• Enter “Supplemental Information” across the top of page 1 of
the form;
• Include a statement of what has changed, along with the
supporting information; and
• Attach a copy of the original Form 709 that has already been
filed.
Generally, you must file Form 709 no earlier than January 1,
but not later than April 15, of the year after the gift was made.
However, in instances when April 15 falls on a Saturday, Sunday,
or legal holiday, Form 709 will be due on the next business day.
See section 7503.
If the donor died during 2023, the executor must file the
donor's 2023 Form 709 not later than the earlier of:
• The due date (with extensions) for filing the donor's estate
tax return; or
• April 15, 2024, or the extended due date granted for filing
the donor's gift tax return.
For the mailing address for a supplemental Form 709, see
Filing Estate and Gift Tax Returns. File the amended Form 709 at
the following address.
Internal Revenue Service Center
Attn: E&G, Stop 824G
7940 Kentucky Drive
Florence, KY 41042-2915
Extension of Time To File
There are two methods of extending the time to file the gift tax
return. Neither method extends the time to pay the gift or GST
taxes. If you want an extension of time to pay the gift or GST
taxes, you must request that separately. See Regulations section
25.6161-1.
If using a PDS, file at this address.
Internal Revenue Service Center
Attn: E&G, Stop 824G
7940 Kentucky Drive
Florence, KY 41042-2915
By extending the time to file your income tax return. Any
extension of time granted for filing your calendar year 2023
federal income tax return will also automatically extend the time
to file your 2023 federal gift tax return. Income tax extensions are
made by using Form 4868, Application for Automatic Extension
of Time To File U.S. Individual Income Tax Return, or Form 2350,
Application for Extension of Time To File U.S. Income Tax
Return. You may only use these forms to extend the time for filing
your gift tax return if you are also requesting an extension of time
to file your income tax return.
If you have already been notified that the return has been
selected for examination, you should provide the additional
information directly to the office conducting the examination.
See the Caution under Lines 12–18. Split Gifts, later,
TIP before you mail the return.
By filing Form 8892. If you do not request an extension for your
income tax return, use Form 8892, Application for Automatic
Extension of Time To File Form 709 and/or Payment of Gift/
Generation-Skipping Transfer Tax, to request an automatic
6-month extension of time to file your federal gift tax return. In
addition to containing an extension request, Form 8892 also
serves as a payment voucher (Form 8892-V) for a balance due
on federal gift taxes for which you are extending the time to file.
For more information, see Form 8892.
Adequate Disclosure
!
CAUTION
To begin the running of the statute of limitations for a gift,
the gift must be adequately disclosed on Form 709 (or
an attached statement) filed for the year of the gift.
In general, a gift will be considered adequately disclosed if
the return or statement includes the following.
• A full and complete Form 709.
• A description of the transferred property and any
consideration received by the donor.
• The identity of, and relationship between, the donor and
each donee.
• If the property is transferred in trust, the trust's employer
identification number (EIN) and a brief description of the
terms of the trust (or a copy of the trust instrument in lieu of
the description).
Private Delivery Services (PDSs)
Filers can use certain PDSs designated by the IRS to meet the
“timely mailing as timely filing” rule for tax returns. Go to
IRS.gov/PDS for the current list of designated services.
The PDS can tell you how to get written proof of the mailing
date.
For the IRS mailing address to use if you're using a PDS, go
to IRS.gov/PDSstreetAddresses.
Instructions for Form 709 (2023)
PDSs can't deliver items to P.O. boxes. You must use the
U.S. Postal Service to mail any item to an IRS P.O. box
address.
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• Either a qualified appraisal or a detailed description of the
you will be subject to the gift tax (and GST tax, if applicable) if
you dispose of all or part of your life income interest (by gift, sale,
or otherwise).
method used to determine the fair market value of the gift.
See Regulations section 301.6501(c)-1(e) and (f) for details,
including what constitutes a qualified appraisal, the information
required if no appraisal is provided, and the information required
for transfers under sections 2701 and 2702.
Generally, the entire value of the property transferred will be
treated as a taxable gift less:
Penalties
1. The amount you received (if any) for the life income interest;
and
Late filing and late payment. Section 6651 imposes penalties
for both late filing and late payment, unless there is reasonable
cause for the delay.
2. The amount (if any) determined after the application of
section 2702, valuing certain retained interests at zero, for
the life income interest you retained after the transfer.
Reasonable-cause determinations. If you receive a notice
about penalties after you file Form 709, send an explanation and
we will determine if you meet reasonable-cause criteria. Do not
attach an explanation when you file Form 709.
There are also penalties for willful failure to file a return on
time, willful attempt to evade or defeat payment of tax, and
valuation understatements that cause an underpayment of the
tax. A substantial valuation understatement occurs when the
reported value of property entered on Form 709 is 65% or less of
the actual value of the property. A gross valuation
understatement occurs when the reported value listed on the
Form 709 is 40% or less of the actual value of the property.
That portion of the property's value that is attributable to the
remainder interest is a gift of a future interest for which no annual
exclusion is allowed. To the extent that you transferred the life
income interest without receiving any value in return, the transfer
is a gift, and you may claim an annual exclusion, treating the
person to whom you transferred the interest as the donee for
purposes of figuring the annual exclusion.
Specific Instructions
Part 1—General Information
Return preparer. Penalties may also be applied to tax return
preparers, including gift tax return preparers.
Gift tax return preparers who prepare any return or claim for
refund that reflects an understatement of tax liability due to an
unreasonable position are subject to a penalty equal to the
greater of $1,000 or 50% of the income earned (or to be earned)
for the preparation of each such return.
Gift tax return preparers who prepare any return or claim for
refund with an understatement of tax liability due to willful or
reckless conduct can be penalized $5,000 or 75% of the income
derived (or to be derived) for the preparation of the return.
Gift tax return preparers who prepare any return or claim for a
refund are required to furnish a copy to the taxpayer, sign the
return, and provide their PTIN, but who fail to do so, are subject
to a penalty of $50 for such failure, unless it is shown that such
failure is due to reasonable cause and not due to willful neglect.
See section 6694, the related regulations, and Ann. 2009-15,
2009-11 I.R.B. 687, available at IRS.gov/pub/irs-irbs/
irb09-11.pdf, for more information.
Line 3. Donor’s Social Security Number
Enter your social security number (SSN), if applicable, or your
individual taxpayer identification number (ITIN), but only if you
have previously used the ITIN to file other U.S. tax returns. If you
do not have an SSN or a previously used ITIN, the IRS will
assign an Internal Revenue Service Number (IRSN) to you. If
you have already been assigned an IRSN, please enter the
number on line 3. If you do not have a SSN, ITIN, or IRSN, leave
line 3 blank.
Lines 4 and 6. Address
Enter your current mailing address.
Foreign address. If your address is outside of the United
States or its territories, enter the information as follows: city,
province or state, and name of country. Follow the country's
practice for entering the postal code. Do not abbreviate the
country name.
Line 5. Legal Residence (Domicile)
In general, your legal residence (also known as your domicile) is
acquired by living in a place, for even a brief period of time, with
no definite present intention of moving from that place.
Joint Tenancy
If you buy property with your own funds and the title to the
property is held by you and a donee as joint tenants with right of
survivorship and if either you or the donee may give up those
rights by severing your interest, you have made a gift to the
donee in the amount of half the value of the property.
Enter the state of the United States (including the District of
Columbia) or a foreign country in which you legally reside or are
domiciled at the time of the gift.
If you create a joint bank account for yourself and a donee (or
a similar kind of ownership by which you can get back the entire
fund without the donee's consent), you have made a gift to the
donee when the donee draws on the account for the donee’s
own benefit. The amount of the gift is the amount that the donee
took out without any obligation to repay you.
Line 7. Citizenship
Enter your citizenship.
The term “citizen of the United States” includes a person who,
at the time of making the gift:
• Was domiciled in a territory of the United States,
• Was a U.S. citizen, and
• Became a U.S. citizen for a reason other than being a citizen
of a U.S. territory or being born or residing in a territory.
If you buy a U.S. savings bond registered as payable to
yourself or a donee, there is a gift to the donee when the donee
cashes the bond without any obligation to account to you.
Transfer of Certain Life Estates
Received From Spouse
A nonresident not a citizen of the United States includes a
person who, at the time of making the gift:
• Was domiciled in a territory of the United States,
• Was a U.S. citizen, and
• Became a U.S. citizen only because that person was a
citizen of a territory or was born or resided in a territory.
If you received a qualified terminable interest (see Line 12.
Election Out of QTIP Treatment of Annuities in the instructions for
Schedule A, later) from your spouse for which a marital
deduction was elected on your spouse's estate or gift tax return,
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Instructions for Form 709 (2023)
Lines 12–18. Split Gifts
When the Consenting Spouse Must Also File a Gift
Tax Return
A married couple may not file a joint gift tax return.
However, if after reading the instructions below, you and
CAUTION your spouse agree to split your gifts, you should file both
of your individual gift tax returns together (that is, in the same
envelope) to help the IRS process the returns and to avoid
correspondence from the IRS.
!
In general, if you and your spouse elect gift splitting, then both
spouses must file their 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 you and your spouse both consent, all gifts (including gifts
of property held with your spouse as joint tenants or tenants by
the entirety) either of you make to third parties during the
calendar year will be considered as made one-half by each of
you if all of the following apply.
• You and your spouse were married to one another at the
time of the gift.
• If divorced or widowed after the gift, you did not remarry
during the rest of the calendar year.
• Neither of you was a nonresident not a citizen of the United
States at the time of the gift.
• You did not give your spouse a general power of
appointment over the property interest transferred.
Exception 1. During the calendar year:
• Only one spouse made any gifts,
• The total value of these gifts to each third-party donee does
not exceed $34,000, and
• All of the gifts were of present interests.
Exception 2. During the calendar year:
• Only one spouse (the donor spouse) made gifts of more
than $17,000 but not more than $34,000 to any third-party
donee,
• The only gifts made by the other spouse (the consenting
spouse) were gifts of not more than $17,000 to third-party
donees other than those to whom the donor spouse made
gifts, and
• All of the gifts by both spouses were of present interests.
If you transferred property partly to your spouse and partly to
third parties, you can only split the gifts if the interest transferred
to the third parties is ascertainable at the time of the gift.
The consent is effective for the entire calendar year;
therefore, all gifts made by both you and your spouse to third
parties during the calendar year (while you were married) must
be split.
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 consent is effective, the liability for the entire gift tax of
each spouse is joint and several.
If you meet these requirements and want your gifts to be
considered made one-half by you and one-half by your spouse,
check the “Yes” box on line 12, complete lines 13 through 17,
and have your spouse sign the consent on line 18.
Line 19. Application of DSUE Amount
If the donor is a citizen or resident of the United States and the
spouse died after December 31, 2010, the donor may be eligible
to use the deceased spouse's unused exclusion (DSUE)
amount. The executor of the spouse's estate must have elected
on Form 706 to allow use of the unused exclusion amount. See
the instructions for Form 706, Part 6—Portability of Deceased
Spousal Unused Exclusion. If the executor of the estate made
this election, attach the first four pages of Form 706 filed by the
estate. Include any attachments related to DSUE that were filed
with Form 706 and calculations of any adjustments to the DSUE
amount like audit reports or previously filed Forms 709. Please
see Rev. Proc. 2022-32, which provides an update to the
simplified method for making a late DSUE election for certain
qualifying taxpayers (superseding Rev. Proc. 2017-34). See also
section 2010(c)(4) and related regulations.
If you are not married or do not wish to split gifts, skip to
line 19.
Line 15. If you were married to one another for all of 2023,
check the “Yes” box and skip to line 17. If you were married for
only part of the year, check the “No” box and go to line 16. If you
were divorced or widowed after you made the gift, you cannot
elect to split gifts if you remarried before the end of 2023.
Line 16. Check the box that explains the change in your marital
status during the year and give the date you were married,
divorced, or widowed.
Consent of Spouse
Your spouse must sign the consent for your gift-splitting election
to be valid. The consent may generally be signed at any time
after the end of the calendar year. However, there are two
exceptions.
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 709. If so,
complete Schedule C before going to Part 2—Tax Computation,
later.
1. 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.
Line 20. Digital Assets
If you reported on this Form 709 any transfer that includes a
digital asset (or a financial interest in a digital asset), answer
“Yes” to the question on Line 20. Do not leave the question
unanswered. You must answer “Yes” or “No” by checking the
appropriate box.
2. 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.
Instructions for Form 709 (2023)
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in which the contribution is made. Also attach an explanation that
includes the following.
• The total amount contributed per individual beneficiary.
• The amount for which the election is being made.
• The name of the individual for whom the contribution was
made.
Schedule A. Computation of Taxable
Gifts
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 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.
Line A. Valuation Discounts
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.
!
CAUTION
How To Complete Parts 1, 2, and 3
After you determine which gifts you made in 2023 that are
subject to the gift tax, list them on Schedule A. You must divide
these gifts between:
Line B. Qualified Tuition Programs (529 Plans or
Programs)
1. Part 1—those subject only to the gift tax (gifts made to
nonskip persons—see Part 1—Gifts Subject Only to Gift
Tax, later),
If in 2023, you contributed more than $17,000 to a qualified
tuition plan (QTP) on behalf of any one person, you may elect to
treat up to $85,000 of the contribution for that person as if you
had made it ratably over a 5-year period. The election allows you
to apply the annual exclusion to a portion of the contribution in
each of the 5 years, beginning in 2023. You can make this
election for as many separate people as you made QTP
contributions.
2. Part 2—those subject to both the gift and GST taxes (gifts
made to skip persons—see Gifts Subject to Both Gift and
GST Taxes and Part 2—Direct Skips, later), and
3. 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).
You can only apply the election to a maximum of $85,000.
You must report all of your 2023 QTP contributions for any single
person that exceed $85,000 (in addition to any other gifts you
made to that person).
If you need more space, attach a separate sheet using the
same format as Schedule A.
Use the following guidelines when entering gifts on
TIP Schedule A.
For each of the 5 years, you report in Part 1 of Schedule A
one-fifth (20%) of the amount for which you made the election. 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 709 you are filing). Do not
list the actual year of contribution for subsequent years.
• Enter a gift only once—in Part 1, Part 2, or Part 3.
• 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
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
709, you do not need to file Form 709 to report that year's portion
of the election amount.
Example. In 2023, D contributed $100,000 to a QTP for the
benefit of A. D elects to treat $85,000 of this contribution as
having been made ratably over a 5-year period. Accordingly, for
2023, D reports the following.
$15,000
+
$17,000
$32,000
Contributions to QTPs do not qualify for the education
exclusion.
•
chosen to split gifts with your spouse and your spouse is
required to file a Form 709 (see Part 1—General
Information, Lines 12–18. 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.
Gifts to Donees Other Than Your Spouse
You must always enter all gifts of future interests that you made
during the calendar year regardless of their value.
(the amount of the contribution that exceeded
$85,000)
(the 1/5 portion from the election)
Gift splitting not elected. If the total gifts of present interests
to any donee are more than $17,000 in the calendar year, then
you must enter all such gifts that you made during the year to or
on behalf of that donee, including those gifts that will be
excluded under the annual exclusion. If the total is $17,000 or
less, you need not enter on Schedule A any gifts (except gifts of
future interests) that you made to that donee. Enter these gifts in
the top half of Part 1, 2, or 3, as applicable.
the total gift to A listed in Part 1 of Schedule A for
2023
In 2024, D gives a gift of $20,000 cash to B and no other gifts.
On 2024 Form 709, D reports in Part 1 of Schedule A the
$20,000 gift to B and a $17,000 gift to A (the one-fifth portion of
the 2023 gift that is treated as made in 2024). In column E of Part
1 (Schedule A), D lists “2024” as the date of the gift.
D makes no gifts in 2025, 2026, or 2027. D is not required to
file Form 709 in any of those years to report the one-fifth portion
of the QTP gift because D is not otherwise required to file Form
709.
Gift splitting elected. Enter on Schedule A the entire value of
every gift you made during the calendar year while you were
married, even if the gift's value will be less than $17,000 after it is
split in column G of Part 1, 2, or 3 of Schedule A.
Gifts made by spouse. 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.
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
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Instructions for Form 709 (2023)
Gifts to Your Spouse
Note. 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.
Except for the gifts described below, you do not need to enter
any of your gifts to your spouse on Schedule A.
Terminable interests. 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.
Trust. 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.
Charitable remainder trusts. 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 2523(g)(1).
For definitions and rules concerning these trusts, see section
2056(b)(8)(B).
Interest in property. 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).
Future interest. 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 709
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. You should
use the rules under Gifts Subject to Both Gift and GST Taxes,
later, to determine whether to enter the gift on Schedule A, Part
1, 2, or 3.
Skip person. 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.
Spouses who are not U.S. citizens. If your spouse is not a
U.S. citizen and you gave your spouse a gift of a future interest,
you must report on Schedule A all gifts to your spouse for the
year. If all gifts to your spouse were present interests, do not
report on Schedule A any gifts to your spouse if the total of such
gifts for the year does not exceed $175,000 and all gifts in
excess of $17,000 would qualify for a marital deduction if your
spouse were a U.S. citizen (see the instructions for Schedule A,
Part 4, line 4). If the gifts exceed $175,000, you must report all of
the gifts even though some may be excluded.
Nonskip person. A nonskip person is any donee who is not a
skip person.
Determining the Generation of a Donee
Generally, a generation is determined along family lines as
follows.
1. If the donee is a lineal descendant of a grandparent of the
donor (for example, the donor's cousin, niece, nephew,
etc.), the number of generations between the donor and the
descendant (donee) is determined by subtracting the
number of generations between the grandparent and the
donor from the number of generations between the
grandparent and the descendant (donee).
Gifts Subject to Both Gift and GST
Taxes
Definitions
Direct skip. The GST tax you must report on Form 709 is that
imposed only on inter vivos direct skips. An inter vivos direct skip
is a transfer that is:
• Subject to the gift tax,
• Of an interest in property, and
• Made to a skip person.
2. 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).
All three requirements must be met before the gift is subject to
the GST tax.
A gift is “subject to the gift tax” if you are required to list it on
Schedule A of Form 709. 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:
3. 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.
1. During the lifetime of the beneficiary, no corpus or income
may be distributed to anyone other than the beneficiary; and
4. A relationship by adoption or half-blood is treated as a
relationship by whole-blood.
2. 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.
Instructions for Form 709 (2023)
A person who is not assigned to a generation according to
(1), (2), (3), or (4) above is assigned to a generation based on
the person’s birth date as follows.
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• The generation assignment of the youngest living ancestor
1. A person who was born not more than 121/2 years after the
donor is in the donor's generation.
of the individual who is also a descendant of the parent of
the transferor.
2. A person born more than 121/2 years, but not more than
371/2 years, after the donor is in the first generation younger
than the donor.
The same rules apply to the generation assignment of any
descendant of the individual.
3. Similar rules apply for a new generation every 25 years.
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 more than one of the rules for assigning generations apply
to a donee, that donee is generally assigned to the youngest of
the generations that would apply.
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.
Ninety-day rule. 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
90-day rule applies to transfers occurring on or after July 18,
2005. See Regulations section 26.2651-1(a)(2)(iii) for more
information.
If an estate, trust, partnership, corporation, or other entity
(other than governmental entities and certain charitable
organizations and trusts, described in sections 511(a)(2) and
511(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
511(a)(2) and 511(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.
Examples
The GST rules can be illustrated by the following examples.
Generation assignments under Notice 2017-15. Notice
2017-15 permits a taxpayer to reduce the 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. A taxpayer’s GST exemption that was
allocated to a transfer to a transferee (or a trust for the sole
benefit of such transferee) whose generation assignment should
have been determined on the basis of a familial relationship as
the result of the Windsor decision, and are nonskip persons, is
deemed void. For additional information, go to IRS.gov/
Businesses/Small-Businesses-Self-Employed/Estate-and-GiftTaxes.
Example 1. You give your house to your daughter with the
remainder then passing to your daughter’s 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 your daughter’s interest in the trust will occur that
may be subject to the GST tax. See the instructions for Part
3—Indirect Skips and Other Transfers in Trust, later, for a
discussion of how to allocate GST exemption to such a trust.
Charitable Remainder Trusts
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.
Example 2. You give $100,000 to your grandchild. This gift is
a direct skip that is not made in trust. You should list it in Part 2 of
Schedule A.
Example 3. 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.
Generation Assignment Where Intervening
Parent Is Deceased
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.
Example 4. 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.
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 a member of the generation that is one generation
below the lower of:
• The transferor's generation, or
Part 1—Gifts Subject Only to Gift Tax
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.
-10-
Instructions for Form 709 (2023)
improvements, less applicable depreciation, amortization, and
depletion.
Group the gifts in four categories.
• Gifts made to your spouse.
• Gifts made to third parties that are to be split with your
spouse.
• Charitable gifts (if you are not splitting gifts with your
For more information on adjusted basis, see Pub. 551, Basis
of Assets.
• Other gifts.
Columns E and F. Date and Value of Gift
spouse).
If a transfer results in gifts to two or more individuals (such as a
life estate to one with remainder to the other), list the gift to each
separately.
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.
Number and describe all gifts (including charitable, public,
and similar gifts) in the columns provided in Schedule A.
Column B
Describe each gift in enough detail so that the property can be
easily identified, as explained below.
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.
For real estate, give:
• A legal description of each parcel;
• The street number, name, and area if the property is located
in a city; and
• A short statement of any improvements made to the
property.
1. 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.
For bonds, give:
The number of bonds transferred;
The principal amount of each bond;
Name of obligor;
Date of maturity;
Rate of interest;
Date or dates when interest is payable;
Series number, if there is more than one issue;
Exchanges where listed or, if unlisted, give the location of
the principal business office of the corporation; and
• CUSIP number. The CUSIP number is a nine-digit number
assigned by the American Banking Association to traded
securities.
•
•
•
•
•
•
•
•
2. Prorate the difference between mean prices to the valuation
date.
3. 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.
For stocks:
• Give number of shares;
• State whether common or preferred;
• 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;
If listed, give principal exchange; and
CUSIP number.
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.
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.
For life insurance policies, give the name of the insurer and
the policy number.
Clearly identify in the description column which gifts create
the opening of an ETIP as described under Transfers Subject to
an Estate Tax Inclusion Period (ETIP), earlier. Describe the
interest that is creating the ETIP. An allocation of GST exemption
to property subject to an ETIP that is made prior to the close of
the ETIP becomes effective no earlier than the date of the close
of the ETIP. See Schedule D. Computation of GST Tax, later.
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 2701 and 2702 provide special valuation rules to
determine the amount of the gift when a donor transfers an
equity interest in a corporation or partnership (section 2701) or
makes a gift in trust (section 2702). 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 2701 and 2702, and their regulations.
Column D. Donor's Adjusted Basis of Gifts
Show the basis you would use for income tax purposes if the gift
were sold or exchanged. Generally, this means cost plus
Instructions for Form 709 (2023)
-11-
Enter an amount in this column only if you have chosen to split
gifts with your spouse.
an ETIP on Schedule A. Rather, report the transfer subject to an
ETIP on Schedule D. See Schedule D, Part
1—Generation-Skipping Transfers, later. Report all other gifts
made during the year on Schedule A as you normally would.
Split Gifts—Gifts Made by Spouses
Split Gifts—Gifts Made by Spouse
Column G. Split Gifts
See this heading under Part 1.
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.
Part 3—Indirect Skips and Other Transfers in
Trust
Some gifts made to trusts are subject only to gift tax at the time
of the transfer but may later 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.
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.
Section 2632(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 2632(c)(3)(B) for
details.
Supplemental Documents
To support the value of your gifts, you must provide information
showing how it was determined.
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.
List in Part 3 those gifts that are indirect skips as defined in
section 2632(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.
For each life insurance policy, attach Form 712, Life
Insurance Statement.
Note for single premium or paid-up policies. 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
712. In these situations, report the full economic value of the
policy on Schedule A. See Rev. Rul. 78-137, 1978-1 C.B. 280,
for details.
Column C. Section 2632(c) Election
Section 2632(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.
See section 2632(c)(5) for details.
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.
Part 2—Direct Skips
When to make an election. 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.
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.
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. If you are making election 2 or 3
on a return on which the transfer is not reported, simply attach
the statement described below.
Column C. Section 2632(b) Election
If you elect under section 2632(b)(3) to not have the automatic
allocation rules of section 2632(b) apply to a transfer, enter a
check in column C next to the transfer. You must also attach a
statement to Form 709 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 709 and paying the GST tax
on the transfer will qualify as such a statement.
If you are reporting a transfer to a trust for which election 2 or
3 was made on a previously filed return, do not make an entry in
column C for that transfer and do not attach a statement.
Attachment. Attach a statement to Form 709 that describes the
election you are making and clearly identifies the trusts and/or
transfers to which the election applies.
How to report GSTs after the close of an ETIP. If you are
reporting a GST that was subject to an ETIP (provided the ETIP
closed as a result of something other than the death of the
transferor; see Form 706), do not include the transfer subject to
Split Gifts—Gifts Made by Spouse
See this heading under Part 1.
-12-
Instructions for Form 709 (2023)
Part 4—Taxable Gift Reconciliation
Line 1
A partial interest in property is treated as a specific portion of
an entire interest only if the rights of your spouse to the income
and to the power are a fractional or percentile share of the entire
property interest. This means that the interest or share will reflect
any increase or decrease in the value of the entire property
interest. If the spouse is entitled to receive a specified sum of
income annually, the capital amount that would produce such a
sum will be considered the specific portion from which the
spouse is entitled to receive the income.
Enter only gifts of the donor. If gift splitting has been elected,
enter only the value of the gift that is attributable to the spouse
that is filing the return.
Line 2
Election to deduct qualified terminable interest property
(QTIP). You may elect to deduct a gift of a terminable interest if
it meets requirements (1), (2), and (4) earlier, even though it
does not meet requirement (3).
You make this election simply by listing the QTIP on
Schedule A and deducting its value from Schedule A, Part 4,
line 4. You are presumed to have made the election for all
qualified property that you both list and deduct on Schedule A.
You may not make the election on a late-filed Form 709.
Enter the total annual exclusions you are claiming for the gifts
listed on Schedule A. See Annual Exclusion, earlier. If you split a
gift with your spouse, the annual exclusion you claim against that
gift may not be more than the smaller of your half of the gift or
$17,000.
Deductions
Line 4. Marital Deduction
Enter all of the gifts to your spouse that you listed on Schedule A
and for which you are claiming a marital deduction. Do not enter
any gift that you did not include on Schedule A. On the dotted
line on line 4, indicate which numbered items from Schedule A
are gifts to your spouse for which you are claiming the marital
deduction.
Line 5
Enter the amount of the annual exclusions that were claimed for
the gifts listed on line 4.
Line 7. Charitable Deduction
Do not enter on line 4 any gifts to your spouse who was
TIP not a U.S. citizen at the time of the gift.
You may deduct from the total gifts made during the calendar
year all gifts you gave to or for the use of:
• The United States, a state or political subdivision of a state,
or the District of Columbia for exclusively public purposes;
• Any corporation, trust, community chest, fund, or foundation
organized and operated only for religious, charitable,
scientific, literary, or educational purposes, or to prevent
cruelty to children or animals, or to foster national or
international amateur sports competition (if none of its
activities involve providing athletic equipment unless it is a
qualified amateur sports organization), as long as no part of
the earnings benefits any one person, no substantial
propaganda is produced, and no lobbying or campaigning
for any candidate for public office is done;
• A fraternal society, order, or association operating under a
lodge system, if the transferred property is to be used only
for religious, charitable, scientific, literary, or educational
purposes, including the encouragement of art and the
prevention of cruelty to children or animals; or
• Any war veterans' organization organized in the United
States (or any of its territories), or any of its auxiliary
departments or local chapters or posts, as long as no part of
any of the earnings benefits any one person.
You may deduct all gifts of nonterminable interests made
during the year that you entered on Schedule A regardless of
amount, and certain gifts of terminable interests as outlined
below.
Terminable interests. Generally, you cannot take the marital
deduction if the gift to your spouse is a terminable interest. In
most instances, a terminable interest is nondeductible if
someone other than the donee spouse will have an interest in
the property following the termination of the donee spouse's
interest. Some examples of terminable interests are:
• A life estate,
• An estate for a specified number of years, or
• Any other property interest that after a period of time will
terminate or fail.
If you transfer an interest to your spouse as sole joint tenant
with yourself or as a tenant by the entirety, the interest is not
considered a terminable interest just because the tenancy may
be severed.
Life estate with power of appointment. You may deduct,
without an election, a gift of a terminable interest if all four
requirements below are met.
2. The income is paid yearly or more often.
On line 7, show your total charitable, public, or similar gifts
(minus annual exclusions allowed). On the dotted line, indicate
which numbered items from the top of Schedule A are charitable
gifts.
3. Your spouse has the unlimited power, while alive or by will,
to appoint the entire interest in all circumstances.
Line 10. GST Tax
4. No part of the entire interest is subject to another person's
power of appointment (except to appoint it to your spouse).
If GST tax is due on any direct skips reported on this return, the
amount of that GST tax is also considered a gift and must be
added to the value of the direct skip reported on this return.
1. Your spouse is entitled for life to all of the income from the
entire interest.
If either the right to income or the power of appointment given
to your spouse pertains only to a specific portion of a property
interest, the marital deduction is allowed only to the extent that
the rights of your spouse meet all four of the above conditions.
For example, if your spouse is to receive all of the income from
the entire interest, but only has a power to appoint one-half of the
entire interest, then only one-half qualifies for the marital
deduction.
Instructions for Form 709 (2023)
If you entered gifts on Part 2, or if you and your spouse
elected gift splitting and your spouse made gifts subject to the
GST tax that you are required to show on your Form 709,
complete Schedule D, and enter on line 10 the total from
Schedule D, Part 3, column G. Otherwise, enter zero on line 10.
-13-
Line 12. Election Out of QTIP Treatment of
Annuities
under which the returns were filed. If there was any other
variation in the names under which you filed, such as the use of
full given names instead of initials, please explain.
Section 2523(f)(6) creates an automatic QTIP election for gifts of
joint and survivor annuities where the spouses are the only
possible recipients of the annuity prior to the death of the last
surviving spouse.
Column C
To determine the amount of applicable credit (formerly unified
credit) used for gifts made after 1976, use the Worksheet for
Schedule B, Column C (Credit Allowable for Prior Periods),
unless your prior gifts total $500,000 or less.
Prior gifts totaling $500,000 or less. In column C, enter the
amount of applicable credit actually applied in the prior period.
Prior gifts totaling over $500,000. See Redetermining the
Applicable Credit, later.
The donor spouse can elect out of QTIP treatment, however,
by checking the box on line 12 and entering the item number
from Schedule A for the annuities for which you are making the
election. Any annuities entered on line 12 cannot also be entered
on line 4 of Schedule A, Part 4. Any such annuities that are not
listed on line 12 must be entered on line 4 of Part 4, Schedule A.
If there is more than one such joint and survivor annuity, you are
not required to make the election for all of them. Once made, the
election is irrevocable.
Column D
In column D, enter the amount of specific exemption claimed for
gifts made in periods ending before January 1, 1977.
Schedule B. Gifts From Prior Periods
Column E
In column E, show the correct amount (the amount finally
determined) of the taxable gifts for each earlier period.
If you did not file gift tax returns for previous periods, check the
“No” box on page 1 of Form 709, line 11a, of Part 1—General
Information. If you filed gift tax returns for previous periods,
check the “Yes” box on line 11a and complete Schedule B by
listing the years or quarters in chronological order as described
below. If you need more space, attach a separate sheet using
the same format as Schedule B.
!
See Regulations section 25.2504-2 for rules regarding the
final determination of the value of a gift.
Note. Amounts shown in column E should reflect all taxable
gifts, even if no gift tax was paid due to the applicable (formerly
unified) credit.
Complete Schedule A before beginning Schedule B.
Redetermining the Applicable Credit
CAUTION
To redetermine the applicable credit for prior gifts in excess of
$500,000, use the Worksheet for Schedule B, Column C (Credit
Allowable for Prior Periods).
Column A
If you filed returns for gifts made before 1971 or after 1981, show
the calendar years in column A. If you filed returns for gifts made
after 1970 and before 1982, show the calendar quarters.
Column B
In column B, identify the IRS office where you filed the returns. If
you have changed your name, be sure to list any other names
-14-
Instructions for Form 709 (2023)
Instructions for Worksheet for Schedule B, Column C (Credit Allowable for Prior Periods)
Beginning with the earliest year after 1976 in which gifts using a credit amount were made, determine the credit amount (at current rates) for each
quarter/year as follows.
Column
A
Period
Enter the quarter/year of the prior gift(s). Pre-1977 gifts will be on the first row.
B
Taxable Gifts for Current Period
Enter the amount of all taxable gifts for the year in column A. The total of all pre-1977 gifts should
be combined in the first row.
C
Taxable Gifts for Prior Periods
Enter the amount from column D of the previous row.
D
Cumulative Taxable Gifts Including Current Period
Enter the sum of columns B and C from the current row.
E
Tax on Gifts for Prior Periods
Enter the amount from column F of the previous row.
F
Tax on Cumulative Gifts Including Current Period
Enter the tax based on the amount in column D of the current row using the Table for Computing
Gift Tax.
G
Tax on Gifts for Current Period
Subtract the amount in column E from the amount in column F of the current row and enter here.
H
Used DSUE Amount From Predeceased Spouse(s) and
Restored Exclusion Amount
Enter the sum of (a) total DSUE amount (if any) received from the estate of the donor's last
deceased spouse and used by the donor in prior periods and the current period, and (b)
Restored Exclusion Amount (if any). DSUE may not be applied to gifts made before the DSUE
arose. Restored Exclusion Amount may not be applied to gifts made before the taxpayer restored
the exclusion expended on a taxable gift to the taxpayer's same-sex spouse. The Restored
Exclusion Amount is applied in the first year that the taxpayer restores the exclusion and every
subsequent year.
I
Basic Exclusion Amount for Year of Gift
Enter the exclusion amount corresponding with the year listed in column A of the current row.
(See Table of Basic Exclusion and Credit Amounts.)
J
Applicable Exclusion Amount
Add the amounts in columns H and I of the current row and enter here.
K
Applicable Credit Amount (Based on Amount in Column J)
L
Applicable Credit Amount Used in Prior Periods
Using the Table for Computing Gift Tax, determine the credit corresponding to the amount in
column J of the current row and enter here. For each row in column K, subtract 20% of any
amount allowed as a specific exemption for gifts made after September 8, 1976, and before
January 1, 1977.
Enter the total of the amounts in columns L and N of the previous row.
M
Available Credit in Current Period
Subtract the amount in column L from the amount in column K of the current row and enter here.
N
Credit Allowable
Enter the lesser of column G or column M of the current row.
Repeat this process for each prior year with taxable gifts. Do not enter less than zero.
Worksheet for Schedule B, Column C (Credit
Allowable for Prior Periods)
Prior Years Credit Recalculation (for Form 709, Schedule B, Column C)
(Keep for your records.)
A
B
C
D
E
F
G
Period
Taxable
Gifts for
Current
Period
Taxable
Gifts for
Prior
Periods1
Cumulative
Taxable Gifts
Including
Current
Period
(Col. B + Col.
C)
Tax on
Gifts for
Prior
Periods
(Col. C)2, 3
Tax on
Cumulative
Gifts
Including
Current
Period (Col.
D)3
Tax on
Gifts for
Current
Period
(Col. F –
Col. E)
H
I
J
DSUE From
Basic
Applicable
PreExclusion
Exclusion
deceased for the Year
Amount
Spouse(s)
of Gift4
(Col. H +
and
Col. I)
Restored
Exclusion
Amount
K
L
M
Applicable
Applicable
Available
Credit
Credit
Credit in
Amount
Amount
Current
Based on Used in Prior
Period
Column J3, 5
Periods3, 6 (Col. K – Col.
L)
Pre-1977
YYYY
YYYY
YYYY
Total Applicable Credit Used in Prior Periods (Enter the Total of Column N on Schedule B, Line 1, Column C) :
Column C: Enter amount from column D of the previous row.
Column E: Compute the tax on the amount in column C or enter amount from column F of the previous row.
To compute tax or credit amount, see Table for Computing Gift Tax.
4
For years prior to 2010, the basic exclusion amount equals the applicable exclusion amount.
5
For each row in column K, subtract 20% of any amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977.
6
Enter the total of columns L and N of the previous row.
1
2
3
Instructions for Form 709 (2023)
-15-
N
Credit
Allowable
(lesser of
Col. G or
Col. M)
Example 1. Prior Years Credit Recalculation (for Form 709, Schedule B, Column C)
(Three post-1976 years involved. All have the same maximum credit available. Tentative tax exceeds available credit.)
A
B
C
D
E
F
G
H
I
J
Period
Taxable
Gifts for
Current
Period
Taxable
Gifts for
Prior
Periods1
Cumulative
Taxable Gifts
Including
Current
Period
(Col. B + Col.
C)
Tax on
Gifts for
Prior
Periods
(Col. C)2, 3
Tax on
Cumulative
Gifts
Including
Current
Period (Col.
D)3
Tax on
Gifts for
Current
Period
(Col. F –
Col. E)
DSUE From
PreDeceased
Spouse(s)
and
Restored
Exclusion
Amount
Basic
Exclusion
for Year of
the Gift4
Applicable
Exclusion
Amount
(Col. H +
Col. I)
K
L
M
N
Applicable
Applicable
Available
Credit
Credit
Credit in
Amount
Amount
Current
Based on Used in Prior
Period
3, 5
3, 6
Column J
Periods
(Col. K – Col.
L)
Credit
Allowable
(lesser of
Col. G or
Col. M)
Pre-1977
2004
800,000
0
800,000
0
267,800
267,800
0
1,000,000
1,000,000
345,800
0
345,800
267,800
2007
300,000
800,000
1,100,000
267,800
385,800
118,000
0
1,000,000
1,000,000
345,800
267,800
78,000
78,000
2009
200,000
1,100,000
1,300,000
385,800
465,800
80,000
0
1,000,000
1,000,000
345,800
345,800
0
0
Total Applicable Credit Used in Prior Periods (Enter the Total of Column N on Schedule B, Line 1, Column C) :
345,800
Column C: Enter amount from column D of the previous row.
Column E: Compute the tax on the amount in column C or enter amount from column F of the previous row.
3
To compute tax or credit amount, see Table for Computing Gift Tax.
4
For years prior to 2010, the basic exclusion amount equals the applicable exclusion amount.
5
For each row in column K, subtract 20% of any amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977.
6
Enter the total of columns L and N of the previous row.
1
2
Example 2. Prior Years Credit Recalculation (for Form 709, Schedule B, Column C)
(Pre-1977 gifts plus 3 post-1976 years: Earlier years' gifts exceed credit then available. Last gift made after credit increased.)
A
B
C
D
E
F
G
H
I
J
Period
Taxable
Gifts for
Current
Period
Taxable
Gifts for
Prior
Periods1
Cumulative
Taxable Gifts
Including
Current
Period
(Col. B + Col.
C)
Tax on
Gifts for
Prior
Periods
(Col. C)2, 3
Tax on
Cumulative
Gifts
Including
Current
Period (Col.
D)3
Tax on
Gifts for
Current
Period
(Col. F –
Col. E)
DSUE From
PreDeceased
Spouse(s)
and
Restored
Exclusion
Amount
Basic
Exclusion
for Year of
the Gift4
Applicable
Exclusion
Amount
(Col. H +
Col. I)
200,000
K
L
M
Applicable
Applicable
Available
Credit
Credit
Credit in
Amount
Amount
Current
Based on Used in Prior
Period
3, 5
3, 6
Column J
Periods
(Col. K – Col.
L)
N
Credit
Allowable
(lesser of
Col. G or
Col. M)
Pre-1977
200,000
1987
600,000
200,000
800,000
54,800
267,800
54,800
213,000
0
600,000
600,000
192,800
0
192,800
192,800
1999
200,000
800,000
1,000,000
267,800
345,800
78,000
0
650,000
650,000
211,300
192,800
18,500
18,500
2002
100
1,000,000
1,000,100
345,800
345,840
40
0
1,000,000
1,000,000
345,800
211,300
134,500
40
Total Applicable Credit Used in Prior Periods (Enter the Total of Column N on Schedule B, Line 1, Column C) :
211,340
Column C: Enter amount from column D of the previous row.
Column E: Compute the tax on the amount in column C or enter amount from column F of the previous row.
3
To compute tax or credit amount, see Table for Computing Gift Tax.
4
For years prior to 2010, the basic exclusion amount equals the applicable exclusion amount.
5
For each row in column K, subtract 20% of any amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977.
6
Enter the total of columns L and N of the previous row.
1
2
-16-
Instructions for Form 709 (2023)
Example 3. Prior Years Credit Recalculation (for Form 709, Schedule B, Column C)
($6M gift exceeds the applicable credit, $5M DSUE received prior to subsequent $4M gift in the same year.)
A
B
Period
Taxable
Gifts for
Current
Period
C
D
Taxable
Cumulative
Gifts for Taxable Gifts
Prior
Including
Periods1
Current
Period
(Col. B + Col.
C)
E
F
G
H
I
J
Tax on
Gifts for
Prior
Periods
(Col. C)2, 3
Tax on
Cumulative
Gifts
Including
Current
Period (Col.
D)3
Tax on
Gifts for
Current
Period
(Col. F –
Col. E)
DSUE From
PreDeceased
Spouse(s)
and
Restored
Exclusion
Amount4
Basic
Exclusion
for Year of
the Gift5
Applicable
Exclusion
Amount
(Col. H +
Col. I)
K
L
M
Applicable
Applicable
Available
Credit
Credit
Credit in
Amount
Amount
Current
Based on Used in Prior
Period
3, 6
3, 7
Column J
Periods
(Col. K – Col.
L)
N
Credit
Allowable
(lesser of
Col. G or
Col. M)
Pre-1977
2011
10,000,000
0
10,000,000
0
3,945,800
3,945,800
4,000,000
5,000,000
9,000,000
3,545,800
0
3,545,800
3,545,800
Total Applicable Credit Used in Prior Periods (Enter the Total of Column N on Schedule B, Line 1, Column C) :
3,545,800
YYYY
YYYY
Column C: Enter amount from column D of the previous row.
2
Column E: Compute the tax on the amount in column C or enter amount from column F of the previous row.
3
To compute tax or credit amount, see Table for Computing Gift Tax.
4
DSUE may not be applied to gifts made prior to when it arises. Consequently, the available DSUE for the current period is limited to $4,000,000, the value of gifts made after the DSUE arose.
5
For years prior to 2010, the basic exclusion amount equals the applicable exclusion amount.
6
For each row in column K, subtract 20% of any amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977.
7
Enter the total of columns L and N of the previous row.
1
Example 4. Prior Years Credit Recalculation (for Form 709, Schedule B, Column C)
(Prior gift exceeds applicable credit, $5M DSUE received prior to subsequent gift.)
A
B
C
D
E
F
G
H
I
J
Period
Taxable
Gifts for
Current
Period
Taxable
Gifts for
Prior
Periods1
Cumulative
Taxable Gifts
Including
Current
Period
(Col. B + Col.
C)
Tax on
Gifts for
Prior
Periods
(Col. C)2, 3
Tax on
Cumulative
Gifts
Including
Current
Period (Col.
D)3
Tax on
Gifts for
Current
Period
(Col. F –
Col. E)
DSUE From
PreDeceased
Spouse(s)
and
Restored
Exclusion
Amount
Basic
Exclusion
for Year of
the Gift4
Applicable
Exclusion
Amount
(Col. H +
Col. I)
K
L
M
N
Applicable
Applicable
Available
Credit
Credit
Credit
Credit in
Allowable
Amount
Amount
Current
(lesser of
Based on
Used in Prior
Period
Col. G or
3, 5
3, 6
Column J
Periods
(Col. K – Col.
Col. M)
L)
Pre-1977
2002
4,000,000
0
4,000,000
0
1,545,800
1,545,800
0
1,000,000
1,000,000
345,800
0
345,800
345,800
2011
4,000,000
4,000,000
8,000,000
1,545,800
3,145,800
1,600,000
4,000,000
5,000,000
9,000,000
3,545,800
345,800
3,200,000
1,600,000
Total Applicable Credit Used in Prior Periods (Enter the Total of Column N on Schedule B, Line 1, Column C) :
1,945,800
YYYY
Column C: Enter amount from column D of the previous row.
2
Column E: Compute the tax on the amount in column C or enter amount from column F of the previous row.
3
To compute tax or credit amount, see Table for Computing Gift Tax.
4
For years prior to 2010, the basic exclusion amount equals the applicable exclusion amount.
5
For each row in column K, subtract 20% of any amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977.
6
Enter the total of columns L and N of the previous row.
1
Instructions for Form 709 (2023)
-17-
deceased spouse, except to the extent allowed by treaty with the
surviving spouse’s country of citizenship.
Table of Basic Exclusion and Credit Amounts
(as Recalculated for 2023 Rates)
Last Deceased Spouse Limitation
Period
Exclusion Amounts
1977 (Quarters 1 & 2)
$30,000
$6,000
1977 (Quarters 3 & 4)
$120,667
$30,000
1978
$134,000
$34,000
1979
$147,333
$38,000
1980
$161,563
$42,500
1981
$175,625
$47,000
1982
$225,000
$62,800
1983
$275,000
$79,300
1984
$325,000
$96,300
1985
$400,000
$121,800
1986
$500,000
$155,800
1987 through 1997
$600,000
$192,800
1998
$625,000
$202,050
1999
$650,000
$211,300
2000 and 2001
$675,000
$220,550
The last deceased spouse is the most recently deceased person
who was married to the surviving spouse at the time of that
person's death. The identity of the last deceased spouse is
determined as of the day a taxable gift is made and is not
impacted by whether the decedent's estate elected portability or
whether the last deceased spouse had any DSUE amount
available. Remarriage also does not affect the designation of the
last deceased spouse and does not prevent the surviving
spouse from applying the DSUE amount to taxable transfers.
Credit Amounts
2002 through 2010
$1,000,000
$345,800
2011
$5,000,000
$1,945,800
2012
$5,120,000
$1,993,800
2013
$5,250,000
$2,045,800
2014
$5,340,000
$2,081,800
2015
$5,430,000
$2,117,800
2016
$5,450,000
$2,125,800
2017
$5,490,000
$2,141,800
2018
$11,180,000
$4,417,800
2019
$11,400,000
$4,505,800
2020
$11,580,000
$4,577,800
2021
$11,700,000
$4,625,800
2022
$12,060,000
$4,769,800
2023
$12,920,000
$5,113,800
When a taxable gift is made, the DSUE amount received from
the last deceased spouse is applied before the surviving
spouse's basic exclusion amount. A surviving spouse who has
more than one predeceased spouse is not precluded from using
the DSUE amount of each spouse in succession. A surviving
spouse may not use the sum of DSUE amounts from multiple
predeceased spouses at one time nor may the DSUE amount of
a predeceased spouse be applied after the death of a
subsequent spouse.
When a surviving spouse applies the DSUE amount to a
lifetime gift, the IRS may examine any return of a predeceased
spouse whose executor elected portability to verify the allowable
DSUE amount. The DSUE may be adjusted or eliminated as a
result of the examination; however, the IRS may make an
assessment of additional tax on the return of a predeceased
spouse only within the applicable limitations period under
section 6501.
Restored Exclusion Amount. Prior to the decision of the
Supreme Court in United States v. Windsor, 570 U.S. 744, 133
S. Ct. 2675 (2013), the Defense of Marriage Act (DOMA), Public
Law 104-199 (110 Stat. 2419), required that marriages of
couples of the same sex should not be treated as being married
for federal tax purposes. As a result, taxpayers in a same-sex
marriage were not entitled to claim a marital deduction for gifts or
bequests to each other. Those taxpayers were required to use
their applicable exclusion amount to defray any gift or estate tax
imposed on the transfer or were required to pay gift or estate
taxes, to the extent the taxpayer's exclusion previously had been
exhausted.
In Windsor, the Supreme Court declared that DOMA was
unconstitutional. For federal tax purposes, marriages of couples
of the same sex are treated the same as marriages of couples of
the opposite sex. The term “spouse” includes an individual
married to a person of the same sex. However, individuals who
have entered into a registered domestic partnership, civil union,
or other similar relationship that isn't considered a marriage
under state law aren't considered married for federal tax
purposes.
Under a new procedure, a donor who made a transfer to the
donor's same-sex spouse, which resulted in a reduction of the
donor's applicable exclusion amount, can now recalculate the
remaining applicable exclusion. This procedure is only available
to transfers that did not qualify for the marital deduction for
federal gift tax purposes at the time of the transfer, based solely
on the application of DOMA. If the limitations period has expired,
the donor may recalculate the remaining applicable exclusion.
However, once the limitations period on assessment of tax has
expired, neither the value of the transferred interest nor any
position concerning a legal issue (other than the existence of the
marriage) related to the transfer can be changed. Similarly, no
credit or refund of the gift taxes paid on the donor's transfer to
the donor's same-sex spouse can be given once the limitations
period on claims for credit or refund has expired.
Schedule C. Portability of Deceased
Spousal Unused Exclusion (DSUE)
Amount and Restored Exclusion
Amount
Section 303 of the Tax Relief, Unemployment Insurance
Reauthorization, and Job Creation Act of 2010 authorized
estates of decedents dying on or after January 1, 2011, to elect
to transfer any unused exclusion to the surviving spouse. The
amount received by the surviving spouse is called the deceased
spousal unused exclusion, or DSUE, amount. If the executor of
the decedent's estate elects transfer, or portability, of the DSUE
amount, the surviving spouse can apply the DSUE amount
received from the estate of the last deceased spouse (defined
later) against any tax liability arising from subsequent lifetime
gifts and transfers at death.
!
Complete Schedule A before beginning Schedule C.
CAUTION
Note. A nonresident surviving spouse who is not a citizen of the
United States may not take into account the DSUE amount of a
-18-
Instructions for Form 709 (2023)
spouses, or if the donor is a taxpayer who made a taxable
transfer to a same-sex spouse which resulted in a reduction of
the taxpayer's available applicable exclusion amount (or both).
The first step of the procedure is to determine the amount of
applicable exclusion that was expended on a taxable gift to a
same-sex spouse. In any given year, the amount of applicable
exclusion expended on a taxable gift to a same-sex spouse is
equal to the amount of applicable exclusion expended on all
taxable gifts multiplied by the ratio of the amount of taxable gifts
to the same-sex spouse over total taxable gifts. The amount of
applicable exclusion expended on all taxable gifts is equal to the
lesser of the available applicable exclusion or the amount of all
taxable gifts.
Example. In 2011, A made $5 million of taxable gifts. A made
a $3 million taxable gift to B, same-sex spouse, and a $2 million
taxable gift to C, another individual. A's marriage to B was
recognized by the state where they got married, but was not
recognized by the federal government. The transfer to B would
qualify for the marital deduction if A's marriage to B was
recognized by the federal government. A has a basic exclusion
of $5 million. A had previously used $1 million of the applicable
exclusion on other gifts in previous years. This means that A had
$4 million of applicable exclusion available in 2011. Since A's
available applicable exclusion ($4 million) is less than the
amount of all taxable gifts for the year ($5 million), A expended
all $4 million of the available applicable exclusion on all taxable
gifts during the year.
Schedule C requests information on all DSUE amounts
received from the donor's last deceased spouse and any
previously deceased spouses. Each line in the chart should
reflect a different predeceased spouse. Attach proof of each
portability election reported on Schedule C.
Part 1. DSUE Received From the Last Deceased
Spouse
In this Part, include information about the DSUE amount from the
donor's most recently deceased spouse (whose date of death is
after December 31, 2010). In column E, enter the total of the
amount in column D that the donor has applied to gifts in
previous years and is applying to gifts reported on this return. A
donor may apply DSUE only to gifts made after the DSUE arose.
Part 2. DSUE Received From Other Predeceased
Spouse(s)
Enter information about the DSUE amount from the spouse(s), if
any, who died prior to the donor's most recently deceased
spouse (but not before January 1, 2011) if the prior spouse's
executor elected portability of the DSUE amount. In column D,
indicate the amount of DSUE received from the estate of each
predeceased spouse. In column E, enter the portion of the
amount of DSUE shown in column D that was applied to prior
lifetime gifts or transfers. A donor may apply DSUE only to gifts
made after the DSUE arose.
Example of Calculation of Restored Exclusion
Amount
Taxable gifts to B
Applicable exclusion
_______
expended on all
x
=
Total taxable
taxable gifts
gifts
$4 million
$3 million
x _______
$5 million
=
Applicable exclusion
allocable to gifts to B
Any remaining DSUE from a predeceased spouse
cannot be applied against tax arising from lifetime gifts if
CAUTION that spouse is not the most recently deceased spouse
on the date of the gift. This rule applies even if the last deceased
spouse had no DSUE amount or made no valid portability
election, or if the DSUE amount from the last deceased spouse
has been fully applied to gifts in previous periods.
$2,400,000
!
In 2011, A expended $2,400,000 of the applicable exclusion
on the taxable gift to B.
The second step of the procedure is to repeat the first step for
every year where the donor made a taxable gift to a same-sex
spouse.
The third step of the procedure is to add up the result for all
the years. The result is the total amount of applicable exclusion
expended on the same-sex spouse. This amount of applicable
exclusion will be restored to the donor for use on future gifts and
bequests and is known as the Restored Exclusion Amount. Enter
this amount on line 3 of Schedule C.
Attach a statement to Form 709 detailing the calculation of
the above procedure on the first Form 709 that you claim a
Restored Exclusion Amount.
Determining the Applicable Credit Amount
Including DSUE and the Restored Exclusion
Amount
On line 1, enter the donor's basic exclusion amount; for 2023,
this amount is $12,920,000. Add the amounts listed in column E
from Parts 1 and 2 and enter the total on line 2. On line 3, enter
the Restored Exclusion Amount. On line 4, enter the total of lines
1, 2, and 3. Using the Table for Computing Gift Tax, determine
the donor's applicable credit by applying the appropriate tax rate
to the amount on line 4. Enter this amount on line 5 and on line 7
of Part 2—Tax Computation.
The Restored Exclusion Amount will have to be
accounted for the donor on every subsequent Form 709
CAUTION (and Form 706) that will be filed. This means that on all
future Forms 709 that will be filed, the Restored Exclusion
Amount will need to be entered on Schedule C. (The Restored
Exclusion Amount will be entered on line 9c of Part 2—Tax
Computation on Form 706.) In addition, the Worksheet for
Schedule B, Column C (Credit Allowable for Prior Periods)
should reflect the Restored Exclusion Amount. For the period
where the applicable exclusion was first restored, and on every
subsequent period listed on the worksheet, add the Restorable
Exclusion Amount to the total DSUE amount (if any) and enter
the sum in column H.
!
Schedule D. Computation of GST Tax
Part 1—Generation-Skipping Transfers
Enter in Part 1 all of the gifts you listed in Part 2 of Schedule A, in
the same order and showing the same values. If reporting the
GST portion of transfers subject to an ETIP, see How to report
GSTs after the close of an ETIP, later.
Column A
Completing Schedule C
List items from Schedule A, Part 2, column A, in the same order.
Next, list items to be reported on Schedule D (including ETIP
transfers), if any.
Complete Schedule C if the donor is a surviving spouse who
received a DSUE amount from one or more predeceased
Instructions for Form 709 (2023)
-19-
Column B
Year
1999 . . . . . . . . .
2000 . . . . . . . . .
2001 . . . . . . . . .
2002 . . . . . . . . .
2003 . . . . . . . . .
2004 and 2005 . . .
2006, 2007, and 2008
2009 . . . . . . . . .
2010 and 2011 . . .
2012 . . . . . . . . .
2013 . . . . . . . . .
2014 . . . . . . . . .
2015 . . . . . . . . .
2016 . . . . . . . . .
2017 . . . . . . . . .
2018 . . . . . . . . .
2019 . . . . . . . . .
2020 . . . . . . . . .
2021 . . . . . . . . .
2022 . . . . . . . . .
2023 . . . . . . . . .
Only provide descriptions for ETIP transfers; otherwise, leave
blank.
Column D
You are allowed to claim the gift tax annual exclusion currently
allowable for your reported direct skips (other than certain direct
skips to trusts—see Note below) using the rules and limits
discussed earlier for the gift tax annual exclusion. However, you
must allocate the exclusion on a gift-by-gift basis for GST
computation purposes. You must allocate the exclusion to each
gift, to the extent desired but not exceeding the maximum
allowable amount, in chronological order, beginning with the
earliest gift that qualifies for the exclusion. Be sure that you do
not claim a total exclusion of more than $17,000 per donee.
Note. You may not claim any annual exclusion for a transfer
made to a trust unless the trust meets the requirements
discussed under Part 2—Direct Skips, earlier.
How to report GSTs after the close of an ETIP. If you are
reporting a GST that occurred because of the close of an ETIP,
complete Part 1 as follows.
Column B. For transfers subject to an ETIP only, describe
each transfer as provided in the instructions for Part 1 of
Schedule A. In addition, describe the interest that is closing the
ETIP, explain what caused the interest to terminate, list the date
the ETIP closed, and list the year the gift portion of the transfer
was reported and its item number on Schedule A that was
originally filed to report the gift portion of the ETIP transfer.
Column C.
. . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . .
Amount
$1,010,000
$1,030,000
$1,060,000
$1,100,000
$1,120,000
$1,500,000
$2,000,000
$3,500,000
$5,000,000
$5,120,000
$5,250,000
$5,340,000
$5,430,000
$5,450,000
$5,490,000
$11,180,000
$11,400,000
$11,580,000
$11,700,000
$12,060,000
$12,920,000
In general, each annual increase can only be allocated to
transfers made (or appreciation occurring) during or after the
year of the increase.
Example. A donor made $1,750,000 in direct-skip GSTs
through 2005, and allocated all $1,500,000 of the exemption to
those transfers. In 2023, the donor makes a $2,000,000 taxable
GST. The donor can allocate $2,000,000 of exemption to the
2023 transfer but cannot allocate the $9,420,000 of unused 2023
exemption to pre-2023 transfers.
However, if in 2005, the donor made a $1,750,000 transfer to
a trust that was not a direct skip, but from which GSTs could be
made in the future, the donor could allocate the increased
exemption to the trust, even though no additional transfers were
made to the trust. See Regulations section 26.2642-4 for the
redetermination of the applicable fraction when additional
exemption is allocated to the trust.
Keep a record of your transfers and exemption allocations to
make sure that any future increases are allocated correctly.
Enter on line 1 of Part 2 the maximum GST exemption you are
allowed. This will not necessarily be the highest indexed amount
if you made no GSTs during the year of the increase.
The donor can apply this exemption to inter vivos transfers
(that is, transfers made during the donor's life) on Form 709. The
executor can apply the exemption on Form 706 to transfers
taking effect at death. An allocation is irrevocable.
In the case of inter vivos direct skips, a portion of the donor's
unused exemption is automatically allocated to the transferred
property unless the donor elects otherwise. To elect out of the
automatic allocation of exemption, you must file Form 709 and
attach a statement to it 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 709 and paying the GST tax
on the transfer will prevent an automatic allocation.
1. If the GST exemption is being allocated on a timely filed
(including extensions) gift tax return, enter the value as of
the close of the ETIP.
2. If the GST exemption is being allocated on a late-filed (past
the due date including extensions) gift return, enter the
value as of the date the gift tax return was filed.
Part 2—GST Exemption Reconciliation
Line 1
Every donor is allowed a lifetime GST exemption. The amount of
the exemption for 2023 is $12,920,000. For transfers made
through 1998, the GST exemption was $1 million. The exemption
amounts for 1999 through 2023 are as follows.
Special QTIP election. If you elect QTIP treatment for any gifts
in trust listed on Schedule A, then on Schedule D you may also
elect to treat the entire trust as non-QTIP for purposes of the
GST tax. The election must be made for the entire trust that
contains the particular gift involved on this return. Be sure to
identify the item number of the specific gift for which you are
making this special QTIP election.
-20-
Instructions for Form 709 (2023)
Table for Computing Gift Tax
Taxable
amount
over—
Taxable
amount
not over—
Tax on
amount in
column A
Rate of tax
on excess
over amount
in column A
.
Column D
.
Column C
.
Column B
.
Column A
----$10,000
20,000
40,000
60,000
$10,000
20,000
40,000
60,000
80,000
----$1,800
3,800
8,200
13,000
18%
20%
22%
24%
26%
80,000
100,000
150,000
250,000
500,000
750,000
1,000,000
100,000
150,000
250,000
500,000
750,000
1,000,000
-----
18,200
23,800
38,800
70,800
155,800
248,300
345,800
28%
30%
32%
34%
37%
39%
40%
Line 5
Column C
Enter the amount of GST exemption you are applying to transfers
reported in Part 3 of Schedule A.
You are not required to allocate your available exemption. You
may allocate some, all, or none of your available exemption, as
you wish, among the gifts listed in Part 3 of Schedule D.
However, the total exemption claimed in column C may not
exceed the amount you entered on line 3 of Part 2 of
Schedule D.
Section 2632(c) provides an automatic allocation to indirect
skips of any unused GST exemption. The unused exemption is
allocated to indirect skips to the extent necessary to make the
inclusion ratio zero for the property transferred. You may elect
out of this automatic allocation as explained in the instructions
for Part 3.
Column D
Carry your computation to 3 decimal places (for example,
“1.000”).
Line 6
Notice of Allocation. You may wish to allocate GST exemption
to transfers not reported on this return, such as a late allocation.
To allocate your exemption to such transfers, attach a
statement to this Form 709 and entitle it “Notice of Allocation.”
The notice must contain the following for each trust (or other
transfer).
• Clear identification of the trust, including the trust's EIN, if
known.
• If this is a late allocation, the year the transfer was reported
on Form 709.
• The value of the trust assets at the effective date of the
allocation.
• The amount of your GST exemption allocated to each gift (or
a statement that you are allocating exemption by means of a
formula such as “an amount necessary to produce an
inclusion ratio of zero”).
• The inclusion ratio of the trust after the allocation.
Part 2—Tax Computation (Page 1 of
Form 709)
Lines 4 and 5
To compute the tax for the amount on line 3 (to be entered on
line 4) and the tax for the amount on line 2 (to be entered on
line 5), use the Table for Computing Gift Tax.
Line 7
The applicable credit (formerly unified credit) amount is the
tentative tax on the applicable exclusion amount. For gifts made
in 2023, the applicable exclusion amount equals:
• The basic exclusion amount of $12,920,000, PLUS
• Any DSUE amount, PLUS
• Any Restored Exclusion Amount.
Total the exemption allocations and enter this total on line 6.
If you are a citizen or resident of the United States, you must
apply any available applicable credit against gift tax. If you are
not eligible to use a DSUE amount from a predeceased spouse,
or Restored Exclusion Amount on taxable gifts made to a
same-sex spouse, enter $5,113,800 on line 7. Nonresidents not
citizens of the United States may not claim the applicable credit
and should enter zero on line 7.
Note. Where the property involved in such a transfer is subject
to an ETIP, an allocation of the GST exemption at the time of the
transfer will only become effective at the end of the ETIP. For
details, see Transfers Subject to an Estate Tax Inclusion Period
(ETIP), earlier, and section 2642(f).
Part 3—Tax Computation
If you are eligible to use a DSUE amount from a predeceased
spouse or a Restored Exclusion Amount for taxable gifts to a
same-sex spouse (or both), complete Schedule C—Deceased
Spousal Unused Exclusion (DSUE) Amount and enter the
amount from line 5 of that schedule on line 7 of Part 2—Tax
Computation.
You must enter in Part 3 every gift you listed in Part 1 of
Schedule D.
Instructions for Form 709 (2023)
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Determine the tentative tax on the applicable exclusion
amount using the rates in the Table for Computing Gift Tax, and
enter the result on line 7.
sign the return as preparer unless that person is your regular
full-time employee.
Remember, if you and your spouse have consented to split
gifts, your spouse must also sign and date the return in Part 1,
line 18.
Line 10
Enter 20% of the amount allowed as a specific exemption for
gifts made after September 8, 1976, and before January 1, 1977.
(These amounts will be among those listed in Schedule B,
column D, for gifts made in the third and fourth quarters of 1976.)
Third-party designee. If you want to allow the return preparer
(listed on the bottom of page 1 of Form 709) to discuss your
2023 Form 709 with the IRS, check the “Yes” box to the far right
of your signature on page 1 of your return.
If you check the “Yes” box, you (and your spouse, if splitting
gifts) are authorizing the IRS to call your return preparer to
answer questions that may arise during the processing of your
return. You are also authorizing the return preparer of your 2023
Form 709 to:
• Give the IRS any information that is missing from your return;
• Call the IRS for information about the processing of your
return or the status of your payment(s);
• Receive copies of notices or transcripts related to your
return, upon request; and
• Respond to certain IRS notices about math errors, offsets,
and return preparation.
Line 13
Gift tax conventions are in effect with Australia, Austria,
Denmark, France, Germany, Japan, and the United Kingdom. If
you are claiming a credit for payment of foreign gift tax, figure the
credit and attach the calculation to Form 709, along with
evidence that the foreign taxes were paid. See the applicable
convention for details of computing the credit.
Line 19
Make your check or money order payable to “United States
Treasury” and write the donor's SSN on it. You may not use an
overpayment on Form 1040 or 1040-SR to offset the gift and
GST taxes owed on Form 709.
You are not authorizing your return preparer to receive any
refund check, to bind you to anything (including any additional
tax liability), or otherwise represent you before the IRS. If you
want to expand the authorization of your return preparer, see
Pub. 947, Practice Before the IRS and Power of Attorney.
The authorization will automatically end 3 years from the date
of filing Form 709. If you wish to revoke the authorization before it
ends, see Pub. 947.
No checks of $100 million or more accepted. The IRS
cannot accept a single check (including a cashier's check) for
amounts of $100,000,000 ($100 million) or more. If you're
sending $100 million or more by check, you'll need to spread the
payments over two or more checks, with each check made out
for an amount less than $100 million. The $100 million or more
amount limit does not apply to other methods of payment (such
as electronic payments), so please consider paying by means
other than checks.
Signature
As a donor, you must sign the return. If you pay another person,
firm, or corporation to prepare your return, that person must also
Disclosure, Privacy Act, and Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal
Revenue laws of the United States. We need the information to figure and collect the right amount of tax. Form 709 is used to report (1)
transfers subject to the federal gift and certain GST taxes and to figure the tax, if any, due on those transfers; and (2) allocations of the
lifetime GST exemption to property transferred during the transferor's lifetime.
Our legal right to ask for the information requested on this form is found in sections 6001, 6011, 6019, and 6061, and their
regulations. You are required to provide the information requested on this form. Section 6109 requires that you provide your identifying
number.
Generally, tax returns and return information are confidential, as stated in section 6103. However, section 6103 allows or requires
the Internal Revenue Service to disclose or give such information shown on your Form 709 to the Department of Justice to enforce the
tax laws, both civil and criminal, and to cities, states, the District of Columbia, and U.S. commonwealths and territories for use in
administering their tax laws. We may also disclose this information to other countries under a tax treaty, to federal and state agencies
to enforce federal nontax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism.
We may disclose the information on your Form 709 to the Department of the Treasury and contractors for tax administration
purposes; and to other persons as necessary to obtain information that we cannot get in any other way for purposes of determining the
amount of or to collect the tax you owe. We may disclose the information on your Form 709 to the Comptroller General to review the
Internal Revenue Service. We may also disclose the information on your Form 709 to Committees of Congress; federal, state, and
local child support agencies; and to other federal agencies for the purpose of determining entitlement for benefits or the eligibility for,
and the repayment of, loans.
If you are required to but do not file a Form 709, or do not provide the information requested on the form, or provide fraudulent
information, you may be charged penalties and be subject to criminal prosecution.
You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form
displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents
may become material in the administration of any Internal Revenue law.
The time needed to complete and file this form will vary depending on individual circumstances. The estimated average time is:
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Instructions for Form 709 (2023)
Recordkeeping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 min.
Learning about the law or the form. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 hr., 53 min.
Preparing the form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 hr., 21 min.
Copying, assembling, and sending the form to the IRS . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 hr., 3 min.
Comments and suggestions. We welcome your comments about this publication and suggestions for future editions.
You can send us comments through IRS.gov/FormComments. Or you can write to the Internal Revenue Service, Tax Forms and
Publications, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224.
Although we can't respond individually to each comment received, we do appreciate your feedback and will consider your
comments and suggestions as we revise our tax forms, instructions, and publications. Don’t send tax questions, tax returns, or
payments to the above address. Instead, see Where To File, earlier.
Instructions for Form 709 (2023)
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| File Type | application/pdf |
| File Title | 2023 Instructions for Form 709 |
| Subject | Instructions for Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return |
| Author | W:CAR:MP:FP |
| File Modified | 2024-02-20 |
| File Created | 2023-08-18 |