Form 709 is structured as a main return with multiple interconnected schedules. Each part of the form has a specific reporting role, and understanding how these sections fit together is essential for correctly reporting gifts, applying exclusions, and completing tax computations.
Main return: Parts I and II
The main return establishes the filing context and performs the final tax calculation. Part I collects donor information and identifies whether special conditions apply, such as gift splitting, prior filings, extensions, digital assets, or use of a deceased spousal unused exclusion. Part II combines amounts carried from the schedules to compute gift tax and generation-skipping transfer tax.
Schedule A: Reporting current-year gifts
Schedule A is where all reportable gifts made during the calendar year are listed. Part 1 reports gifts subject only to gift tax, Part 2 reports direct skips subject to both gift tax and generation-skipping transfer tax, and Part 3 reports indirect skips and other transfers in trust. Schedule A, Part 4 reconciles total gift values with annual exclusions, marital deductions, charitable deductions, and GST tax amounts.
Schedule B: Gifts from prior periods
Schedule B is used when the donor has filed Form 709 in earlier years. It reports taxable gifts from prior periods so cumulative gift totals and previously allowed credits are carried forward correctly into the current year’s tax computation.
Schedule C: Deceased spousal unused exclusion
Schedule C documents any deceased spousal unused exclusion amount applied to current or prior gifts. This schedule connects portability elections from a predeceased spouse to the applicable credit calculation used in Part II of the form.
Schedule D: Generation-skipping transfer tax
Schedule D is completed when gifts involve generation-skipping transfer tax considerations. It records generation-skipping transfers, tracks GST exemption allocations, and computes any GST tax. Amounts calculated on Schedule D flow back into Schedule A and Part II.
How the schedules work together
Form 709 follows a defined flow: gifts are first identified and classified on Schedule A, prior-period gifts are added through Schedule B, exclusions and deductions are reconciled in Schedule A, Part 4, and tax and credits are calculated in Part II using inputs from Schedules A, B, C, and D. Each schedule supports a specific step in this process.
This page explains the structure of Form 709 and how its sections connect. For the main practical overview, see Form 709 instructions and practical guide. For the authoritative form layout and official instructions, refer to the IRS Form 709 official document overview.