Form 709 is filed to report taxable gifts and certain generation-skipping transfers made during a calendar year. The filing process follows the structure of the form and its schedules and is designed to disclose gifts, apply exclusions and credits, and document required elections under federal gift tax rules.
Complete the main return information
Begin by completing Part I of Form 709 with the donor’s identifying information, filing status indicators, and required disclosures. This section establishes whether the return is original or amended, whether an extension applies, and whether gift splitting or deceased spousal unused exclusion is involved.
Report gifts on Schedule A
All reportable gifts are listed on Schedule A. Gifts subject only to gift tax are reported in Part 1, direct skips subject to generation-skipping transfer tax are reported in Part 2, and indirect skips or transfers in trust are reported in Part 3. Each gift is listed with its description, date, value, and applicable classifications as required by the schedule.
Account for prior-period gifts
If the donor has filed Form 709 in prior years, Schedule B is used to report taxable gifts from earlier periods. This schedule ensures that cumulative gift amounts and prior credits are properly reflected in the current year’s tax computation.
Apply exclusions and deductions
Schedule A, Part 4 is used to reconcile the total value of gifts with applicable annual exclusions, marital deductions, and charitable deductions. This step determines the amount of taxable gifts carried forward to the tax computation section of the form.
Complete generation-skipping and spousal schedules if applicable
If generation-skipping transfers are involved, Schedule D is completed to allocate exemptions and compute any generation-skipping transfer tax. If a deceased spousal unused exclusion amount is applied, Schedule C must be completed. Gift splitting between spouses requires completion of Part III and the attached consent information.
Calculate tax and credits
Part II of the form calculates gift tax and generation-skipping transfer tax using the amounts carried from the schedules. Applicable credits and prior-period adjustments are applied to determine whether any tax is due.
Sign and submit the return
After completing all required sections and schedules, the donor signs the return under penalties of perjury. Form 709 is filed separately from the individual income tax return and is submitted according to Internal Revenue Service filing instructions for the applicable tax year.
This page explains the filing process for Form 709. For deadlines and extensions, see Form 709 filing deadline and how to request an extension. For a complete overview of how the form fits together, see Form 709 instructions and practical guide. For the official form, schedules, and authoritative instructions, refer to the IRS Form 709 official document overview.