With all the different special situations, I'm so confused with how to fill out IRS Form 709.
Last year my widower father (still alive) gave me and my sister cash, let's say $32,000 each. This is the first time he has had to file 709.
Here's what I started to fill out, but I can't find where the "Lifetime $1 million" is applied. Is that the $345,800?
Schedule A, Part 1
1B - Me, Son, DescriptionÊsh
1F - 32,000
1H - 32,000 (Net transfer)
2B - "Sister", Daughter, DescriptionÊsh
2F - 32,000
1H - 32,000 (Net transfer)
Schedule A, Part 4 Line 1 - 64,000 (Total value of gifts of donor) Line 2 - 24,000 (Total annual exclusion for gifts) Line 3 - 40,000 (Total included amount of gifts)
Line 8 - 0 Line 9 - 40,000 Line 10- 0 Line 11- 40,000
Schedule B & C Blank
Form 709 Line 1 - 40,000 (Schedule A, Part 4, line 11) Line 2 - 0 Line 3 - 40,000 Line 4 - 8,200 (Tax computed) Line 6 - 8,200 Line 7 - 345,800 (Unified credit) Line 9 - 345,800 Line 11 - 345,800 Line 12 - 8,200 (Enter smaller of 6 or 11) Line 14 - 8,200 Line 15 - 0 (Balance, subtract 14 from 6) Line 17 - 0 (Total Tax)