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Must I file a 709 Gift Tax Return?
Anonymous2 views2 answers
If I gift more than the allowable annual gift amount to a non-spouse each year for several years but will never come close to the lifetime exclusion amount (millions away ...I'm not wealthy), is it necessary to complete the 709 each year with my tax returns? My understanding is that this form is really just a tally which keeps track of your gifts so that when an individual of high value assets reaches the lifetime limit, they then owe the req'd tax.
No. If you exceed the allowable exclusion amount, then you need to file the gift tax return. Gift tax will be due on the gift unless you can use part of your lifetime exemption amount against the gift, and the only way to do that is to file the return.
You need to file the 709 along with your 1040. Your CPA should be able to assist you. If you do not file the 709, the taxable portion of the gift will have a tax due and owing, plus inerest and penalties.
