Form 709, schedule A and B

Prepare aa gift tax return using the information from problem C12-58, page 12-38 (JOEL BRUTON). Prepare the following: FORM 709, Schedule A, Schedule B

Form
709
United States Gift (and Generation-Skipping Transfer) Tax Return
OMB No. 1545-0020
Go to www.irs.gov/Form709 for instructions and the latest information.
2023
Department of the Treasury
Internal Revenue Service
Part 1—General Information
1 Donor’s first name and middle initial
(For gifts made during calendar year 2023)
2 Donor’s last name
3 Donor’s social security number
4 Address (number, street, and apartment number)
5 Legal residence (domicile)
6 City or town, state or province, country, and ZIP or foreign postal code
7 Citizenship (see instructions)
,
No
If you extended the time to file this Form 709, check here
Enter the total number of donees listed on Schedule A. Count each person only once
11a
b
Have you (the donor) previously filed a Form 709 (or 709-A) for any other year? If “No,” skip line 11b
Has your address changed since you last filed Form 709 (or 709-A)?
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12
Gifts by husband or wife to third parties. Do you consent to have the gifts (including generation-skipping transfers) made
by you and by your spouse to third parties during the calendar year considered as made one-half by each of you? See
instructions. (If the answer is “Yes,” the following information must be furnished and your spouse must sign the consent
shown below. If the answer is “No,” skip lines 13–18.) . . . . . . . . . . . . . . . . . . . .
13
Name of consenting spouse
15
16
17
18
Were you married to one another during the entire calendar year? See instructions . . . . . . . . . . . .
If line 15 is “No,” check whether
married
divorced or
widowed/deceased, and give date. See instructions
Will a gift tax return for this year be filed by your spouse? If “Yes,” mail both returns in the same envelope
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Consent of Spouse. I consent to have the gifts (and generation-skipping transfers) made by me and by my spouse to third parties during the calendar
year considered as made one-half by each of us. We are both aware of the joint and several liability for tax created by the execution of this consent.
If the donor died during the year, check here
and enter date of death
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Date
Have you applied a DSUE amount received from a predeceased spouse to a gift or gifts reported on this or a previous Form
709? If “Yes,” complete Schedule C . . . . . . . . . . . . . . . . . . . . . . . . . .
20
Part 2—Tax Computation
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14 SSN
Consenting spouse’s signature
19
Attach check or money order here.
Yes
8
9
10
Does any gift or other transfer reported on this Form 709 include a digital asset (or a financial interest in a digital asset)? See instructions
1
2
3
Enter the amount from Schedule A, Part 4, line 11 .
Enter the amount from Schedule B, line 3 . . .
Total taxable gifts. Add lines 1 and 2 . . . . .
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1
2
3
4
5
6
Tax computed on amount on line 3 (see Table for Computing Gift Tax in instructions)
Tax computed on amount on line 2 (see Table for Computing Gift Tax in instructions)
Balance. Subtract line 5 from line 4 . . . . . . . . . . . . . . .
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4
5
6
7
Applicable credit amount. If donor has DSUE amount from predeceased spouse(s) or Restored Exclusion
Amount, enter amount from Schedule C, line 5; otherwise, see instructions
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8
Enter the applicable credit against tax allowable for all prior periods (from Sch. B, line 1, col. C)
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7
8
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9
9
Balance. Subtract line 8 from line 7. Do not enter less than zero .
10
Enter 20% (0.20) of the amount allowed as a specific exemption for gifts made after September 8, 1976,
and before January 1, 1977. See instructions . . . . . . . . . . . . . . . . . .
11
12
13
Balance. Subtract line 10 from line 9. Do not enter less than zero
Applicable credit. Enter the smaller of line 6 or line 11 . . . .
Credit for foreign gift taxes (see instructions)
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10
11
12
13
14
15
16
Total credits. Add lines 12 and 13 . . . . . . . . . . . . .
Balance. Subtract line 14 from line 6. Do not enter less than zero
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Generation-skipping transfer taxes (from Schedule D, Part 3, col. G, total) .
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14
15
16
17
18
19
20
Total tax. Add lines 15 and 16 . . . . . . . . . . . . . . .
Gift and generation-skipping transfer taxes prepaid with extension of time to file
If line 18 is less than line 17, enter balance due. See instructions . . . .
If line 18 is greater than line 17, enter amount to be refunded . . . . .
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Sign
Here
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Under penalties of perjury, I declare that I have examined this return, including any accompanying schedules and
statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer
(other than donor) is based on all information of which preparer has any knowledge.
Date
Signature of donor
Print/Type preparer’s name
Paid
Preparer
Firm’s name
Use Only Firm’s address
20
May the IRS discuss this return
with the preparer shown below?
See instructions.
Yes
No
Preparer’s signature
Date
For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see the instructions for this form.
Check
if
self-employed
PTIN
Firm’s EIN
Phone no.
Cat. No. 16783M
Form 709 (2023)
Page 2
Form 709 (2023)
SCHEDULE A
A
B
Computation of Taxable Gifts (Including transfers in trust) (see instructions)
Does the value of any item listed on Schedule A reflect any valuation discount? If “Yes,” attach explanation
. . . . . .
Yes
No
Check here if you elect under section 529(c)(2)(B) to treat any contributions made this year to a qualified tuition program as made ratably over a
5-year period beginning this year. See instructions. Attach explanation.
Part 1—Gifts Subject Only to Gift Tax. Gifts less political organization, medical, and educational exclusions. See instructions.
A
Item
number
B
• Donee’s name and address
• Relationship to donor (if any)
• Description of gift
• If the gift was of securities, give CUSIP no.
• If closely held entity, give EIN
D
Donor’s adjusted
basis of gift
C
E
Date
of gift
F
Value at
date of gift
G
For split gifts,
enter 1/2 of
column F
H
Net transfer
(subtract col. G
from col. F)
1
Gifts made by spouse—complete only if you are splitting gifts with your spouse and he/she also made gifts.
Total of Part 1. Add amounts from Part 1, column H .
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Part 2—Direct Skips. Gifts that are direct skips and are subject to both gift tax and generation-skipping transfer tax. You must list the gifts in
chronological order.
A
Item
number
B
• Donee’s name and address
• Relationship to donor (if any)
• Description of gift
• If the gift was of securities, give CUSIP no.
• If closely held entity, give EIN
C
2632(b)
election
out
D
Donor’s adjusted
basis of gift
E
Date
of gift
F
Value at
date of gift
G
For split gifts,
enter 1/2 of
column F
H
Net transfer
(subtract col. G
from col. F)
1
Gifts made by spouse—complete only if you are splitting gifts with your spouse and he/she also made gifts.
Total of Part 2. Add amounts from Part 2, column H . . . . . . . . . . . . . . . . . . . . . . .
Part 3—Indirect Skips and Other Transfers in Trust. Gifts to trusts that are indirect skips as defined under section 2632(c) or to trusts that
are currently subject to gift tax and may later be subject to generation-skipping transfer tax. You must list these gifts in chronological order.
A
Item
number
B
• Donee’s name and address
• Relationship to donor (if any)
• Description of gift
• If the gift was of securities, give CUSIP no.
• If closely held entity, give EIN
C
2632(c)
election
D
Donor’s adjusted
basis of gift
E
Date
of gift
F
Value at
date of gift
G
For split gifts,
enter 1/2 of
column F
H
Net transfer
(subtract col. G
from col. F)
1
Gifts made by spouse—complete only if you are splitting gifts with your spouse and he/she also made gifts.
Total of Part 3. Add amounts from Part 3, column H . .
(If more space is needed, attach additional statements.)
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Form 709 (2023)
Page 3
Form 709 (2023)
Part 4—Taxable Gift Reconciliation
1
2
3
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1
2
3
5
6
7
Exclusions attributable to gifts on line 4 . .
Marital deduction. Subtract line 5 from line 4 .
Charitable deduction, based on item numbers
8
9
10
11
Total deductions. Add lines 6 and 7
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Subtract line 8 from line 3 . . . . . . . . . . . . . . . . . . . . . .
Generation-skipping transfer taxes payable with this Form 709 (from Schedule D, Part 3, col. G, total)
Taxable gifts. Add lines 9 and 10. Enter here and on page 1, Part 2—Tax Computation, line 1 . .
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8
9
10
Total value of gifts of donor. Add totals from column H of Parts 1, 2, and 3 .
Total annual exclusions for gifts listed on line 1 (see instructions) . . . .
Total included amount of gifts. Subtract line 2 from line 1 . . . . . .
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Deductions (see instructions)
4
Gifts of interests to spouse for which a marital deduction will be claimed, based on item
numbers
of Schedule A . . . . . . . .
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less exclusions
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4
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6
7
11
Terminable Interest (QTIP) Marital Deduction. (See instructions for Schedule A, Part 4, line 4.)
If a trust (or other property) meets the requirements of qualified terminable interest property under section 2523(f), and:
a. The trust (or other property) is listed on Schedule A; and
b. The value of the trust (or other property) is entered in whole or in part as a deduction on Schedule A, Part 4, line 4, then the donor shall be
deemed to have made an election to have such trust (or other property) treated as qualified terminable interest property under section 2523(f).
If less than the entire value of the trust (or other property) that the donor has included in Parts 1 and 3 of Schedule A is entered as a deduction
on line 4, the donor shall be considered to have made an election only as to a fraction of the trust (or other property). The numerator of this
fraction is equal to the amount of the trust (or other property) deducted on Schedule A, Part 4, line 6. The denominator is equal to the total
value of the trust (or other property) listed in Parts 1 and 3 of Schedule A.
If you make the QTIP election, the terminable interest property involved will be included in your spouse’s gross estate upon his or her death
(section 2044). See instructions for line 4 of Schedule A. If your spouse disposes (by gift or otherwise) of all or part of the qualifying life income
interest, he or she will be considered to have made a transfer of the entire property that is subject to the gift tax. See Transfer of Certain Life
Estates Received From Spouse in the instructions.
12
Election Out of QTIP Treatment of Annuities
Check here if you elect under section 2523(f)(6) not to treat as qualified terminable interest property any joint and survivor annuities that are
reported on Schedule A and would otherwise be treated as qualified terminable interest property under section 2523(f). See instructions. Enter the
item numbers from Schedule A for the annuities for which you are making this election
SCHEDULE B
Gifts From Prior Periods
If you answered “Yes” on line 11a of page 1, Part 1, see the instructions for completing Schedule B. If you answered “No,” skip to the
Tax Computation on page 1 (or Schedule C or D, if applicable). Complete Schedule A before beginning Schedule B. See instructions
for recalculation of the column C amounts. Attach calculations.
A
Calendar year or
calendar quarter
(see instructions)
B
Internal Revenue office
where prior return was filed
D
C
Amount of applicable Amount of specific
credit (unified credit) exemption for prior
periods ending before
against gift tax
January 1, 1977
for periods after
December 31, 1976
1
Totals for prior periods
2
Amount, if any, by which total specific exemption, line 1, column D, is more than $30,000
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2
3
Total amount of taxable gifts for prior periods. Add amount on line 1, column E, and amount, if any, on line 2. Enter
here and on page 1, Part 2—Tax Computation, line 2 . . . . . . . . . . . . . . . . . .
3
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(If more space is needed, attach additional statements.)
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E
Amount of
taxable gifts
1
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Form 709 (2023)
Page 4
Form 709 (2023)
SCHEDULE C
Deceased Spousal Unused Exclusion (DSUE) Amount and Restored Exclusion
Provide the following information to determine the DSUE amount and applicable credit received from prior spouses. Complete Schedule A
before beginning Schedule C.
A
Name of deceased spouse
(dates of death after December 31, 2010, only)
B
Date of death
C
Portability election
made?
Yes
D
If “Yes,” DSUE
amount received
from spouse
E
F
DSUE amount applied
Date of gift(s)
by donor to lifetime (enter as mm/dd/yy
gifts (list current
for Part 1 and as
and prior gifts)
yyyy for Part 2)
No
Part 1—DSUE RECEIVED FROM LAST DECEASED SPOUSE
Part 2—DSUE RECEIVED FROM PREDECEASED SPOUSE(S)
TOTAL (for all DSUE amounts applied from column E for Part 1 and Part 2)
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1
2
Donor’s basic exclusion amount (see instructions)
Total from column E, Parts 1 and 2 . . . . .
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1
2
3
4
Restored Exclusion Amount (see instructions)
Add lines 1, 2, and 3 . . . . . . . .
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3
4
5
Applicable credit on amount in line 4 (see Table for Computing Gift Tax in the instructions). Enter here and on line 7,
Part 2—Tax Computation
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SCHEDULE D
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Computation of Generation-Skipping Transfer Tax
Note: Inter vivos direct skips that are completely excluded by the GST exemption must still be fully reported (including value and exemptions
claimed) on Schedule D.
Part 1—Generation-Skipping Transfers. List items from Schedule A first, then items to be reported on Schedule D, including any transfers
subject to an Estate Tax Inclusion Period (ETIP).
A
Item number
(from Schedule A,
Part 2, col. A, then
ETIP transfers,
if any)
B
Description
(only for ETIP transfers)
C
Value
(from Schedule A,
Part 2, col. H,
or close of ETIP
described in col. B)
D
Nontaxable
portion of transfer
E
Net transfer
(subtract col. D
from col. C)
1
Gifts made by spouse (for gift splitting only)
(If more space is needed, attach additional statements.)
Form 709 (2023)
Page 5
Form 709 (2023)
Part 2—GST Exemption Reconciliation (Section 2631) and Section 2652(a)(3) Election
Check here
if you are making a section 2652(a)(3) (special QTIP) election. See instructions.
Enter the item numbers from Schedule A of the gifts for which you are making this election
1
Maximum allowable exemption (see instructions)
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1
2
Total exemption used for periods before filing this return
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2
3
Exemption available for this return. Subtract line 2 from line 1 .
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3
4
Exemption claimed on this return from Part 3, column C, total below .
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4
5
Automatic allocation of exemption to transfers reported on Schedule A, Part 3. To opt out of the automatic
allocation rules, you must attach an “Election Out” statement. See instructions
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5
Exemption allocated to transfers not shown on line 4 or line 5 above. You must attach a “Notice of Allocation.”
See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
7
Add lines 4, 5, and 6 .
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7
8
Exemption available for future transfers. Subtract line 7 from line 3
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8
6
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Part 3—Tax Computation
A
Item number
(from Schedule D,
Part 1)
B
Net transfer
(from Schedule D,
Part 1, col. E)
C
GST exemption
allocated
D
Divide col. C
by col. B
E
Inclusion ratio
(Subtract col. D
from 1.000)
F
Applicable rate
(multiply col. E
by 40% (0.40))
G
Generation-skipping
transfer tax
(multiply col. B
by col. F)
1
Gifts made by spouse (for gift splitting only)
Total exemption claimed. Enter here
and on Part 2, line 4, above. May not
exceed Part 2, line 3, above . . .
(If more space is needed, attach additional statements.)
Total generation-skipping transfer tax. Enter here; on page
3, Schedule A, Part 4, line 10; and on page 1, Part 2—Tax
Computation, line 16
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Form 709 (2023)