I funded a 529 plan for my grandchild with a one-time gift of $65,000 in 2011. Where on Form 709 do I report it? Page 5 of the instructions under "Qualified Tuition Programs" says, "You report in Part 1 of Schedule A one fifth (20%) of the amount...." Page 6 of the instructions says to report on Part 2 of Schedule A "those subject to both the Gift Tax and GST Taxes (gifts made to skip persons)." A skip person is defined on Page 7 as "a donee assigned to a generation which is two or more generations below the generation assignment of the donor." These two instructions seem to imply that this gift belongs on both Parts 1 and 2, except that Page 6 also says, "Enter a gift only once--in Part 1 or Part 2 or Part 3."
Where do I report this? Part 1? Part 2? Both? Neither?