Schedule A is the core reporting section of Form 709 where all reportable gifts made during the calendar year are listed and classified. Every gift that triggers Form 709 reporting appears on Schedule A before exclusions, deductions, and tax calculations are applied.
Purpose of Schedule A
Schedule A establishes the factual record of gifts for the year. It captures the identity of each donee, the description and date of each gift, and the value used for tax purposes. The schedule also determines how each gift is classified for gift tax and generation-skipping transfer tax treatment.
Part 1: Gifts subject only to gift tax
Part 1 is used to report gifts that are subject only to federal gift tax rules. These include gifts to individuals that are not skip persons and that do not involve generation-skipping transfer tax. Gifts reported here are later adjusted for annual exclusions, marital deductions, and charitable deductions in Part 4.
Part 2: Direct skips
Part 2 reports direct skips, which are gifts made directly to skip persons that are subject to both gift tax and generation-skipping transfer tax. These gifts must be listed in chronological order and are carried forward to Schedule D for GST exemption allocation and tax computation.
Part 3: Indirect skips and transfers in trust
Part 3 is used to report gifts to trusts and other transfers that may later become subject to generation-skipping transfer tax. These include indirect skips as defined under federal tax law. Gifts in this part are also linked to Schedule D for GST exemption tracking.
Part 4: Taxable gift reconciliation
Part 4 reconciles the total value of gifts reported in Parts 1, 2, and 3 with applicable annual exclusions and deductions. This section determines the amount of taxable gifts that flows into Part II of the main return for tax computation.
How Schedule A connects to the rest of the form
Schedule A feeds directly into multiple other parts of Form 709. Values from Part 4 are carried to Part II for gift tax calculation. Direct and indirect skips reported in Schedule A are carried to Schedule D for generation-skipping transfer tax computation. Prior-period gift tracking in Schedule B relies on taxable gift amounts established through Schedule A.
This page explains how Schedule A works within Form 709. For an overview of the entire form structure, see Form 709 structure explained. For generation-skipping rules tied to Schedule A, see Schedule D and GST tax explained. For official schedule layout and instructions, refer to the IRS Form 709 official document overview.