A Comprehensive Guide to Form 709: Gift and GST Tax Return

📝Form 709 is used to report taxable gifts made by individuals who are US citizens or residents.

🎁Gift splitting allows married couples to split gifts between them for the purpose of maximizing their annual exclusions.

💰The current annual gift tax exclusion for 2023 is $177,000 per donor per recipient.

📅Gifts made while the couple is married and still living together qualify for gift splitting.

💡It's important to determine whether the property being gifted is community property or separate property.

Who needs to file Form 709?

—US citizens or residents who make taxable gifts during the year need to file Form 709.

What is gift splitting?

—Gift splitting allows married couples to divide their gifts between them for the purpose of maximizing their annual exclusions.

What is the annual gift tax exclusion for 2023?

—The annual gift tax exclusion for 2023 is $177,000 per donor per recipient.

When can gift splitting be done?

—Gift splitting can be done when the gifts are made while the couple is married and still living together.

Why is it important to determine the character of the gifted property?

—It's important to determine whether the property being gifted is community property or separate property as it affects the gift splitting election.

00:01Introduction to Form 709 and the purpose of the video

02:15Explanation of gift splitting and its benefits for married couples

05:27Details about the annual gift tax exclusion and its current amount

08:46Requirements for gift splitting and who can qualify

10:59Importance of determining the character of the gifted property

12:48Step-by-step breakdown of filling out Form 709

18:10Conclusion and thank you message