How to Complete Schedule B when Recalculating Applicable Credits on Form 709

📝When completing Form 709 for prior year gifts, it's important to include both the current year gifts and the prior year gifts on Schedule B.

💸For gifts totaling over $500,000 in prior years, you need to recalculate the applicable credits used using the 2023 tax rate tables.

📋To complete Schedule B, list the taxable gifts for each year in column C and calculate the tax using the 2023 tax rate tables.

🔢Use the cumulative taxable gifts from the previous rows to reference the taxable gifts for the prior periods in column C.

💡Consult the IRS instructions for Form 709 and the 2023 tax rate tables for accurate calculations and reporting.

What is Schedule B on Form 709?

—Schedule B on Form 709 is used to report prior year gifts and applicable credits used. It is important to accurately complete this schedule to ensure proper reporting and calculation of gift tax owed.

How do I account for prior year gifts on Schedule B?

—To account for prior year gifts on Schedule B, list the taxable gifts for each year in column C. Calculate the tax on those gifts using the 2023 tax rate tables. Include the applicable credits used in column E.

What if my prior year gifts total over $500,000?

—If your prior year gifts total over $500,000, you need to recalculate the applicable credits used. Use the 2023 tax rate tables to determine the correct amount of applicable credits to report.

Where can I find the 2023 tax rate tables?

—You can find the 2023 tax rate tables in the IRS instructions for Form 709. Refer to these tables to accurately calculate the tax on prior year gifts.

Are there any penalties for incorrect reporting on Form 709?

—There may be penalties for incorrect reporting on Form 709, so it is important to ensure accurate and complete reporting. Consult the IRS instructions and seek professional advice if needed.

00:01In this video, we will guide you through the process of completing Schedule B on Form 709 when recalculating applicable credits for prior year gifts.

00:18When completing Form 709, it's important to include both the current year gifts and the prior year gifts on Schedule B.

01:30For gifts totaling over $500,000 in prior years, you need to recalculate the applicable credits used using the 2023 tax rate tables.

03:20To complete Schedule B, list the taxable gifts for each year in column C and calculate the tax using the 2023 tax rate tables.

05:59Use the cumulative taxable gifts from the previous rows to reference the taxable gifts for the prior periods in column C.

08:52Consult the IRS instructions for Form 709 and the 2023 tax rate tables for accurate calculations and reporting.