2023 Form 709 - Gift and Generation-Skipping Transfer Tax Return

Form 709, the "United States Gift (and Generation-Skipping Transfer) Tax Return," is not used for individual income tax returns. Instead, it is a separate form used to report certain gifts made during the tax year. The form is filed by the donor, not the recipient of the gift.

Here are some key points about Form 709:

  1. Purpose: Form 709 is used to report gifts that exceed the annual exclusion amount (the amount you can give to any one person in a given year without incurring gift tax). It is also used to report certain transfers or distributions from generation-skipping trusts.

  2. Gift Tax Overview: The gift tax is a tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. The donor is responsible for paying the gift tax. However, there are exclusions and deductions available, and gifts below a certain amount (the annual exclusion) are not subject to the gift tax.

  3. Filing Requirements: If a donor makes gifts during the tax year that exceed the annual exclusion amount, they are required to file Form 709. The form is due by April 15 of the year following the year in which the gifts were made.

  4. Generation-Skipping Transfer Tax: In addition to gift tax, Form 709 is used to report generation-skipping transfers, which involve transfers to individuals who are two or more generations below the donor (e.g., grandchildren).

For the current tax year version of Form 709, please go here.