I am gifting 250K to 2 daughters in the form of cash. No prior gift tax returns.
Since there is no tax due because of lifetime exemption, where do I show no gift tax. The form seems to be overly complicated for a single cash gift.
Never have filled out that form so take that into account………….
my impression is that if you are filling this out for the first time, there might be only a few lines that need to be filled out.
You fill out Sch A pt I that shows the gift.
Pt 4 shows the gift after annual exclusion. You then fill out pg 1 pt 2 which calculates the tax and balances that against the credit you are using up to get net tax of 0.
In future yrs you will need the prior history to show how much of the lifetime exclusion remains. Helps to know the answer.
IRS Form 709 is used to report taxable gifts, and it also allocates the lifetime use of a taxpayer’s generation-skipping transfer tax exemption. The official name of Form 709 is United States Gift (and Generation-Skipping Transfer) Tax Return.