Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 03-05-2015, 01:18 AM
Junior Member
 
Join Date: Mar 2015
Posts: 1
Pragmatic questions about IRS form 709 ???

In 2014 I gave my son a 75k gift for a down payment on a home.
I am 75 years old and my entire estate is worth less than $400,000.

I have read that an IRS 709 form should be filed because of this gift.

I have examined the 709 form which is very complicated, and read comments on tax related forums that even CPA's find the form daunting.

I realize the practical purpose of the form is to insure that correct property taxes be paid when large gifts were made during a person's life and the estate he leaves behind exceeds 5.4 million dollars.

My theoretical question is - what happens if a person never fills out the 709. If the person made a modest gift to a son, and will never be in a position in which he will be liable for any estate taxes.

I would greatly appreciate a practical answer to this question
Thanks for your help



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 03-05-2015, 03:57 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,227
I have read that an IRS 709 form should be filed because of this gift.=====>.yes ;since the amount of the gift for your son exceeded $14K, annual exclusion from gift taxes, you need to file form 709; You cannot file a joint gift tax return. If you and your spouse each made gifts valued over $14k, you both must file a Form 709.

I have examined the 709 form which is very complicated, and read comments on tax related forums that even CPA's find the form daunting. ==========>I think so.

I realize the practical purpose of the form is to insure that correct property taxes be paid when large gifts were made during a person's life and the estate he leaves behind exceeds 5.4 million dollars.===>> correct; gifts in excess of the annual exclusion may still be tax-free up to the lifetime estate basic exclusion amount ,$5,340k in 2014, although for estates over that amount such gifts might increase estate taxes. Taxpayers that expect to have a taxable estate may sometimes prefer to pay gift taxes as they occur, rather than saving them up as part of the estate.


My theoretical question is - what happens if a person never fills out the 709. If the person made a modest gift to a son, and will never be in a position in which he will be liable for any estate taxes.==>> as you made a gift to a son or any gift that would be considered a future interest, yes you need to file. If you are required to file, then you must file amend the 1040 regardless of the net effect. Do not file with your 1040 form - there is a different address for the gift tax return. File Form 709 at the following address . UNLESS your cumulative gift amount exceeds $5.4 million, no tax is liable.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Two States; three questions (MA and AL) Shameus For 2014 0 01-13-2015 12:10 PM
More Trust/Estate (Form 1041) Questions Reno98 CPA Forums 0 01-25-2014 02:22 PM
Questions about Form 2553 moma S-Corporation 1 01-12-2014 02:40 PM
1099-R and 5329 Form questions jdcaro55 IRA/Sep 1 04-05-2013 08:24 AM
Questions about investment income tax for F1 and resident alien in 1040 form timlee Income 1 04-17-2011 04:59 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning