Everything You Need to Know About IRS Form 709
What is Form 709?
Form 709 is the U.S. Gift and Generation-Skipping Transfer (GST) Tax Return. It is required when an individual makes gifts above the IRS annual exclusion limit ($18,000 per recipient for 2024) or transfers assets that may be subject to GST.
Who needs to file Form 709?
- Anyone giving gifts above the annual exclusion amount.
- Donors splitting gifts with a spouse.
- Individuals making gifts of future interests (e.g., trusts).
- Those allocating GST exemptions.
When is Form 709 due?
- The filing deadline is April 15 of the year following the gift.
- Extensions to October 15 are available if you also file for an income tax extension.
What information is required?
- Donor details and Social Security Number.
- Recipient information.
- Description and fair market value of the gift.
- Allocation of lifetime exemption and GST exemption.
Why is Form 709 important?
- Tracks gifts against the lifetime gift and estate tax exemption.
- Ensures compliance with IRS reporting rules.
- Helps manage estate planning and tax liability.