Form 709

United States Gift (and Generation-Skipping Transfer) Tax Return

Tax form 709 is used to report taxable gifts. Taxpayers are required to file Form 709 if they give gifts in excess of the tax year’s annual gift tax exclusion or if they are a couple jointly gifting more than the annual exclusion amount for either of them. IRS form 709 is also used to report gifts placed in trust for future generations, which are subject to the generation-skipping transfer tax reported on Form 709. Gift tax only applies to the amount of the gift that was above the annual exclusion for that tax year. Furthermore, there is a lifetime exclusion that would likely eliminate all gift tax altogether. Importantly, the rules for gift tax may be different when there are gifts to or from noncitizens.