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Old 03-20-2017, 07:38 PM
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Join Date: Mar 2017
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Form 709

Hello;

New here to the forums, sorry if I'm posting in the wrong section.

Got a question on filling out form 709 correctly.

My parents are selling their house to me. I am putting down some initial $$$ and we are setting up a self-done loan/mortgage. This is all legal based on the IRS AFR rules.

Ok so the rub is my parents will "gift" a portion of the equity back to me so the loan can be less.
The gift will be over the $14,000/year ($28,000 joint), so it shouldn't be taxed as it is added to that life time exclusion limit of $5 million.

We just want to dot the I's, and cross the T's correctly and have that form filled out correctly.

Any help would be appreciated.
Thanks in advance. Steve



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Old 03-21-2017, 07:25 PM
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Quote:
Originally Posted by taxy12 View Post

Ok so the rub is my parents will "gift" a portion of the equity back to me so the loan can be less.
The gift will be over the $14,000/year ($28,000 joint), so it shouldn't be taxed as it is added to that life time exclusion limit of $5 million.

We just want to dot the I's, and cross the T's correctly and have that form filled out correctly.
No howver your parents neeed to file form 709 with the IRS since the gifts?d be over $28K for joint. Everyone has a lifetime exemption from gift and estate tax of $5.45 million for 2016 and even after you use up your $14k annual exclusion and any other provisions that apply, any remaining gift amount applies against your lifetime exemption amount.



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Old 03-17-2019, 02:13 PM
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Join Date: Mar 2019
Posts: 1
Form 709 for 529 plan

I have a different question.
I contributed $70000 to 529 in 2015 and I am spreading it for 5 years in tax return, but didn?t file form 709.
In 2018 I contributed $50000 to 529 for same beneficiary.
How do I fill out form 709 now?


Last edited by Sue210 : 03-17-2019 at 02:15 PM.


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Old 03-17-2019, 05:00 PM
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Join Date: Oct 2010
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Originally Posted by Wnhough View Post
No howver your parents neeed to file form 709 with the IRS since the gifts?d be over $28K for joint. Everyone has a lifetime exemption from gift and estate tax of $5.45 million for 2016 and even after you use up your $14k annual exclusion and any other provisions that apply, any remaining gift amount applies against your lifetime exemption amount.
contributions to 529 plans are considered present interest gifts and qualify for the annualfederal gift tax exclusion. This means that you can contribute up to $15k(If married, you and your spouse together have $30k in annual exclusions for every beneficiary, a maximum $120k. in accelerated 529 contributions using the five-year election, ) per year, per beneficiary without incurring federal gift tax(The annual gift tax exclusion is adjusted annually for inflation and rounded to the nearest multiple $1k.) Note that the annual gift tax exclusion is per recipient. Grandparents can make gifts to each grandchild up to the annual gift tax exclusion amount. If you as a donor make contributions to your recipient that exceed the annual gift tax exclusion amount, including 5 year gift tax averaging, you will need to file a gift tax return, IRS Form 709.


Although your gifts over $15k in a year are taxable gifts, you may not actually write a check for the tax. you must use up your lifetime applicable exclusion amount before you'd be liable for an out-of-pocket payment for the gift tax.



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