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Instruksi Formulir 709

Instruksi untuk Form 709, Hadiah Amerika Serikat (dan Transfer Pengentasan Generasi) Pengembalian Pajak

Rev. 2023

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  • Formulir 709 - Hadiah Amerika Serikat (dan Pengentasan Generasi) Pengembalian Pajak
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Department of the Treasury  
Internal Revenue Service  
2023  
Instructions for Form 709  
United States Gift (and Generation-Skipping Transfer) Tax Return  
For gifts made during calendar year 2023  
Section references are to the Internal Revenue Code unless  
What's New  
otherwise noted.  
The annual gift exclusion for 2023 is $17,000. See Annual  
Contents  
Page  
Exclusion, later.  
General Instructions . . . . . . . . . . . . . . . . . . . . . . . . . 1  
Purpose of Form . . . . . . . . . . . . . . . . . . . . . . . . . 1  
Who Must File . . . . . . . . . . . . . . . . . . . . . . . . . . 2  
When To File . . . . . . . . . . . . . . . . . . . . . . . . . . . 5  
Where To File . . . . . . . . . . . . . . . . . . . . . . . . . . . 5  
Amending Form 709 . . . . . . . . . . . . . . . . . . . . . . 5  
Adequate Disclosure . . . . . . . . . . . . . . . . . . . . . . 5  
Penalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6  
Joint Tenancy . . . . . . . . . . . . . . . . . . . . . . . . . . . 6  
For gifts made to spouses who are not U.S. citizens, the  
annual exclusion has increased to $175,000. See  
The top rate for gifts and generation-  
skipping transfers remains at 40%. See Table for Computing  
The basic credit amount for 2023 is $5,113,800. See Table  
The applicable exclusion amount consists of the basic  
exclusion amount ($12,920,000 in 2023) and, in the case of  
a surviving spouse, any unused exclusion amount of the last  
deceased spouse (who died after December 31, 2010). The  
executor of the predeceased spouse's estate must have  
elected on a timely and complete Form 706 to allow the  
donor to use the predeceased spouse's unused exclusion  
amount.  
Transfer of Certain Life Estates Received  
From Spouse . . . . . . . . . . . . . . . . . . . . . . . . . 6  
Specific Instructions . . . . . . . . . . . . . . . . . . . . . . . . . 6  
Part 1—General Information . . . . . . . . . . . . . . . . 6  
Schedule A. Computation of Taxable Gifts . . . . . . 8  
Gifts Subject to Both Gift and GST Taxes . . . . . . . 9  
Schedule B. Gifts From Prior Periods . . . . . . . . . 14  
Digital assets. A new question regarding digital assets  
appears on Line 20. See Digital assets and Line 20. Digital  
Assets, later, for information on transfers involving digital  
assets. Do not leave this question unanswered. The  
question must be answered by all taxpayers, not just  
taxpayers who made transfers involving digital assets.  
Schedule C. Portability of Deceased Spousal  
Unused Exclusion (DSUE) Amount and  
Restored Exclusion Amount . . . . . . . . . . . . . . 18  
Photographs of Missing Children  
Schedule D. Computation of GST Tax . . . . . . . . . 19  
The IRS is a proud partner with the National Center for Missing &  
Exploited Children® (NCMEC). Photographs of missing children  
selected by the Center may appear in instructions on pages that  
would otherwise be blank. You can help bring these children  
home by looking at the photographs and calling  
Part 2—Tax Computation (Page 1 of Form  
709) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21  
Signature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22  
1-800-THE-LOST (1-800-843-5678) if you recognize a child.  
Future Developments  
For the latest information about developments related to Form  
709 and its instructions, such as legislation enacted after they  
were published, go to IRS.gov/Form709.  
General Instructions  
Purpose of Form  
Use Form 709 to report the following.  
For Gifts Made  
Use Revision of  
Transfers subject to the federal gift and certain  
generation-skipping transfer (GST) taxes and to figure the  
tax due, if any, on those transfers.  
After  
and Before  
Form 709 Dated  
– – – – –  
January 1, 1982  
January 1, 1987  
January 1, 1989  
January 1, 1990  
October 9, 1990  
January 1, 1992  
January 1, 1998  
– – – – –  
November 1981  
January 1987  
December 1988  
December 1989  
October 1990  
November 1991  
December 1996  
*
Allocation of the lifetime GST exemption to property  
transferred during the transferor's lifetime. (For more details,  
later, and Regulations section 26.2632-1.)  
December 31, 1981  
December 31, 1986  
December 31, 1988  
December 31, 1989  
October 8, 1990  
All gift and GST taxes must be figured and filed on a  
calendar year basis. List all reportable gifts made during  
!
CAUTION  
the calendar year on one Form 709. This means you  
must file a separate return for each calendar year a reportable  
gift is given (for example, a gift given in 2023 must be reported  
on a 2023 Form 709). Do not file more than one Form 709 for any  
1 calendar year.  
December 31, 1992  
December 31, 1997  
* Use the corresponding annual form.  
How To Complete Form 709  
1. Determine whether you are required to file Form 709.  
Aug 18, 2023  
Cat. No. 16784X  
   
2. Determine what gifts you must report.  
transferred part of your interest to someone other than a charity,  
you must still file a return and report all of your gifts to charities.  
3. Decide whether you and your spouse, if any, will elect to  
split gifts for the year.  
Note. See Pub. 526, Charitable Contributions, for more  
information on identifying a qualified charity.  
4. Complete lines 1 through 19 of Part 1—General Information.  
If you are required to file a return to report noncharitable gifts  
and you made gifts to charities, you must include all of your gifts  
to charities on the return.  
5. List each gift on Part 1, 2, or 3 of Schedule A, as  
appropriate.  
6. Complete Schedules B, C, and D, as applicable.  
Transfers Subject to the Gift Tax  
7. If the gift was listed on Part 2 or 3 of Schedule A, complete  
the necessary portions of Schedule D.  
Generally, the federal gift tax applies to any transfer by gift of real  
or personal property, whether tangible or intangible, that you  
made directly or indirectly, in trust, or by any other means.  
8. Complete Schedule A, Part 4.  
9. Complete Part 2—Tax Computation.  
10. Sign and date the return.  
The gift tax applies not only to the free transfer of any kind of  
property, but also to sales or exchanges, not made in the  
ordinary course of business, where value of the money (or  
property) received is less than the value of what is sold or  
exchanged. The gift tax is in addition to any other tax, such as  
federal income tax, paid or due on the transfer.  
Make sure to complete page 1 and the applicable  
schedules in their entirety. Returns filed without entries in  
!
CAUTION  
each field will not be processed.  
Remember, if you are splitting gifts, your spouse must  
The exercise or release of a general power of appointment  
may be a gift by the individual possessing the power. General  
powers of appointment are those in which the holders of the  
power can appoint the property under the power to themselves,  
their creditors, their estates, or the creditors of their estates. To  
qualify as a power of appointment, it must be created by  
someone other than the holder of the power.  
sign line 18 in Part 1—General Information.  
TIP  
Who Must File  
In general. If you are a citizen or resident of the United States,  
you must file a gift tax return (whether or not any tax is ultimately  
due) in the following situations.  
The gift tax may also apply to forgiving a debt, to making an  
interest-free or below-market interest rate loan, to transferring  
the benefits of an insurance policy, to certain property  
If you gave gifts to someone in 2023 totaling more than  
$17,000 (other than to your spouse), you probably must file  
Gifts to Your Spouse, later, for more information on specific  
gifts that are not taxable.  
settlements in divorce cases, and to giving up some amount of  
annuity in exchange for the creation of a survivor annuity.  
Certain gifts, called future interests, are not subject to the  
$17,000 annual exclusion and you must file Form 709 even if  
the gift was under $17,000. See Annual Exclusion, later.  
Spouses may not file a joint gift tax return. Each individual is  
responsible to file a Form 709.  
Bonds that are exempt from federal income taxes are not  
exempt from federal gift taxes.  
Sections 2701 and 2702 provide rules for determining  
whether certain transfers to a family member of interests in  
corporations, partnerships, and trusts are gifts. The rules of  
section 2704 determine whether the lapse of any voting or  
liquidation right is a gift.  
You must file a gift tax return to split gifts with your spouse  
(regardless of their amount) as described in Part 1—General  
Information, later.  
If a gift is of community property, it is considered made  
one-half by each spouse. For example, a gift of $100,000 of  
community property is considered a gift of $50,000 made by  
each spouse, and each spouse must file a gift tax return.  
Likewise, each spouse must file a gift tax return if they have  
made a gift of property held by them as joint tenants or  
tenants by the entirety.  
Digital assets. The gift tax applies to transfers of digital assets.  
Digital assets are any digital representations of value that are  
recorded on a cryptographically secured distributed ledger or  
any similar technology. For example, digital assets include  
non-fungible tokens (NFTs) and virtual currencies, such as  
cryptocurrencies and stablecoins. If a particular asset has the  
characteristics of a digital asset, it will be treated as a digital  
asset for federal transfer tax purposes.  
Only individuals are required to file gift tax returns. If a trust,  
estate, partnership, or corporation makes a gift, the  
individual beneficiaries, partners, or stockholders are  
considered donors and may be liable for the gift and GST  
taxes.  
Gifts to your spouse. You must file a gift tax return if you made  
any gift to your spouse of a terminable interest that does not  
meet the exception described in Life estate with power of  
appointment, later, or if your spouse is not a U.S. citizen and the  
total gifts you made to your spouse during the year exceed  
$175,000.  
You must also file a gift tax return to make the qualified  
terminable interest property (QTIP) election described under  
Except as described earlier, you do not have to file a gift tax  
return to report gifts to your spouse regardless of the amount of  
these gifts and regardless of whether the gifts are present or  
future interests.  
The donor is responsible for paying the gift tax. However, if  
the donor does not pay the tax, the person receiving the gift  
may have to pay the tax.  
If a donor dies before filing a return, the donor's executor  
must file the return.  
Who does not need to file. If you meet all of the following  
requirements, you are not required to file Form 709.  
You made no gifts during the year to your spouse.  
You did not give more than $17,000 to any one donee.  
All the gifts you made were of present interests.  
Gifts to charities. If the only gifts you made during the year are  
deductible as gifts to charities, you do not need to file a return as  
long as you transferred your entire interest in the property to  
qualifying charities. If you transferred only a partial interest, or  
Transfers Not Subject to the Gift Tax  
Four types of transfers are not subject to the gift tax. These are:  
Transfers to political organizations,  
Transfers to certain exempt organizations,  
-2-  
Instructions for Form 709 (2023)  
     
Payments that qualify for the educational exclusion, and  
Payments that qualify for the medical exclusion.  
These transfers are not “gifts” as that term is used on Form 709  
and its instructions. You need not file a Form 709 to report these  
transfers and should not list them on Schedule A of Form 709 if  
you do file Form 709.  
any interest in property, the property will be treated as if it had  
never been transferred to that person. Accordingly, the  
disclaimant is not regarded as making a gift to the person who  
receives the property because of the qualified disclaimer.  
Requirements. To be a qualified disclaimer, a refusal to  
accept an interest in property must meet the following  
conditions.  
Political organizations. The gift tax does not apply to a  
transfer to a political organization (defined in section 527(e)(1))  
for the use of the organization.  
1. The refusal must be in writing.  
2. The refusal must be received by the donor, the legal  
representative of the donor, the holder of the legal title to the  
property disclaimed, or the person in possession of the  
property within 9 months after the later of:  
Certain exempt organizations. The gift tax does not apply to a  
transfer to any civic league or other organization described in  
section 501(c)(4); any labor, agricultural, or horticultural  
organization described in section 501(c)(5); or any business  
league or other organization described in section 501(c)(6) for  
the use of such organization, provided that such organization is  
exempt from tax under section 501(a).  
a. The day the transfer creating the interest is made, or  
b. The day the disclaimant reaches age 21.  
3. The disclaimant must not have accepted the interest or any  
of its benefits.  
Educational exclusion. The gift tax does not apply to an  
amount you paid on behalf of an individual to a qualifying  
domestic or foreign educational organization as tuition for the  
education or training of the individual. A qualifying educational  
organization is one that normally maintains a regular faculty and  
curriculum and normally has a regularly enrolled body of pupils  
or students in attendance at the place where its educational  
activities are regularly carried on. See section 170(b)(1)(A)(ii)  
and its regulations.  
4. As a result of the refusal, the interest must pass without any  
direction from the disclaimant to either:  
a. The spouse of the decedent, or  
b. A person other than the disclaimant.  
5. The refusal must be irrevocable and unqualified.  
The 9-month period for making the disclaimer is generally  
determined separately for each taxable transfer. For gifts, the  
period begins on the date the transfer is a completed transfer for  
gift tax purposes.  
The payment must be made directly to the qualifying  
educational organization and it must be for tuition. No  
educational exclusion is allowed for amounts paid for books,  
supplies, room and board, or other similar expenses that are not  
direct tuition costs. To the extent that the payment to the  
educational organization was for something other than tuition, it  
is a gift to the individual for whose benefit it was made, and may  
be offset by the annual exclusion if it is otherwise available.  
Annual Exclusion  
The first $17,000 of gifts of present interest to each donee during  
the calendar year is subtracted from total gifts in figuring the  
amount of taxable gifts. For a gift in trust, each beneficiary of the  
trust is treated as a separate donee for purposes of the annual  
exclusion.  
Contributions to a qualified tuition program (QTP) on behalf of  
a designated beneficiary do not qualify for the educational  
Programs) in the instructions for Schedule A, later.  
All of the gifts made during the calendar year to a donee are  
fully excluded under the annual exclusion if they are all gifts of  
present interest and they total $17,000 or less.  
Medical exclusion. The gift tax does not apply to an amount  
you paid on behalf of an individual to a person or institution that  
provided medical care for the individual. The payment must be to  
the care provider. The medical care must meet the requirements  
of section 213(d) (definition of medical care for income tax  
deduction purposes). Medical care includes expenses incurred  
for the diagnosis, cure, mitigation, treatment, or prevention of  
disease, or for the purpose of affecting any structure or function  
of the body, or for transportation primarily for and essential to  
medical care. Medical care also includes amounts paid for  
medical insurance on behalf of any individual.  
The medical exclusion does not apply to amounts paid for  
medical care that are reimbursed by the donee's insurance. If  
payment for a medical expense is reimbursed by the donee's  
insurance company, your payment for that expense, to the extent  
of the reimbursed amount, is not eligible for the medical  
exclusion and you are considered to have made a gift to the  
donee of the reimbursed amount.  
To the extent that the payment was for something other than  
medical care, it is a gift to the individual on whose behalf the  
payment was made and may be offset by the annual exclusion if  
it is otherwise available.  
The medical and educational exclusions are allowed without  
regard to the relationship between you and the donee. For  
examples illustrating these exclusions, see Regulations section  
25.2503-6(c).  
Note. For gifts made to spouses who are not U.S. citizens, the  
annual exclusion has been increased to $175,000, provided the  
additional (above the $17,000 annual exclusion) $158,000 gift  
would otherwise qualify for the gift tax marital deduction (as  
described in the Schedule A, Part 4, line 4, instructions, later).  
Note. Only the annual exclusion applies to gifts made to a  
nonresident not a citizen of the United States. Deductions and  
credits are not considered in determining gift tax liability for such  
transfers.  
A gift of a future interest cannot be excluded under the annual  
exclusion.  
A gift is considered a present interest if the donee has all  
immediate rights to the use, possession, and enjoyment of the  
property or income from the property.  
A gift is considered a future interest if the donee's rights to the  
use, possession, and enjoyment of the property or income from  
the property will not begin until some future date. Future interests  
include reversions, remainders, and other similar interests or  
estates.  
A contribution to a QTP on behalf of a designated beneficiary  
is considered a gift of a present interest.  
Qualified disclaimers. A donee's refusal to accept a gift is  
called a disclaimer. If a person makes a qualified disclaimer of  
A gift to a minor is considered a present interest if all of the  
following conditions are met.  
-3-  
Instructions for Form 709 (2023)  
 
1. Both the property and its income may be expended by, or  
Transfers Subject to an Estate Tax Inclusion  
Period (ETIP)  
for the benefit of, the minor before the minor reaches age  
21.  
Certain transfers receive special treatment if the transferred  
property is subject to an ETIP. An ETIP is the period during  
which, should the donor die, the value of transferred property  
would be includible (other than by reason of section 2035) in the  
gross estate of the donor or the spouse of the donor. For  
transfers subject to an ETIP, GST tax reporting is required at the  
close of the ETIP.  
2. All remaining property and its income must pass to the  
minor on the minor's 21st birthday.  
3. If the minor dies before the age of 21, the property and its  
income will be payable either to the minor's estate or to  
whomever the minor may appoint under a general power of  
appointment.  
For example, if A transfers a house to a qualified personal  
residence trust for a term of 10 years, with the remainder to A’s  
granddaughter, the value of the house would be includible in A’s  
estate if A died within the 10-year period during which A retained  
an interest in the trust. In this case, a portion of the transfer to the  
trust is a completed gift that must be reported on Part 1 of  
Schedule A. The GST portion of the transfer would not be  
reported until A died or A’s interest in the trust otherwise ended.  
Report the gift portion of such a transfer on Schedule A, Part  
1, at the time of the actual transfer. Report the GST portion on  
Schedule D, Part 1, but only at the close of the ETIP. Use Form  
709 only to report those transfers where the ETIP closed due to  
something other than the donor's death. (If the ETIP closed as  
the result of the donor's death, report the transfer on Form 706,  
United States Estate (and Generation-Skipping Transfer) Tax  
Return.)  
The gift of a present interest to more than one donee as joint  
tenants qualifies for the annual exclusion for each donee.  
Nonresidents Not Citizens of the United States  
Nonresidents not citizens of the United States are subject to gift  
and GST taxes for gifts of tangible property situated in the United  
States. A person is considered a nonresident not a citizen of the  
United States if, at the time the gift is made, (1) was not a citizen  
of the United States and did not reside there, or (2) was  
domiciled in a U.S. territory and acquired citizenship solely by  
reason of birth or residence in the territory. Under certain  
circumstances, they are also subject to gift and GST taxes for  
gifts of intangible property. See section 2501(a).  
If you are a nonresident not a citizen of the United States who  
made a gift subject to gift tax, you must file a gift tax return when  
any of the following apply.  
If you are filing this Form 709 solely to report the GST portion  
of transfers subject to an ETIP, complete the form as you  
normally would with the following exceptions.  
You gave any gifts of future interests.  
Your gifts of present interests to any donee other than your  
spouse total more than $17,000.  
Your outright gifts to your spouse who is not a U.S. citizen  
total more than $175,000.  
1. Write “ETIP” at the top of page 1.  
2. Complete only lines 1 through 6, 8, and 9 of Part  
1—General Information.  
Transfers Subject to the GST Tax  
3. Complete Schedule D. Complete columns B and C of  
Schedule D, Part 1, as explained in the instructions for that  
schedule.  
You must report on Form 709 the GST tax imposed on inter vivos  
direct skips. An inter vivos direct skip is a transfer made during  
the donor's lifetime that is:  
Subject to the gift tax,  
4. Complete only lines 10 and 11 of Schedule A, Part 4.  
5. Complete Part 2—Tax Computation.  
Of an interest in property, and  
Made to a skip person. (See Gifts Subject to Both Gift and  
GST Taxes, later.)  
A direct skip that is subject to an ETIP is deemed to have  
been made only at the close of the ETIP. Any allocation  
A transfer is subject to the gift tax if it is required to be  
TIP  
of GST exemption to the transfer of property subject to  
an ETIP, whether a direct skip or an indirect skip, shall not be  
made until the close of the ETIP. The donor may prevent the  
automatic allocation of GST exemption by electing out of the  
automatic allocation rules at any time prior to the due date of the  
Form 709 for the calendar year in which the close of the ETIP  
occurs (whether or not any transfer was made in the calendar  
year for which the Form 709 was filed, and whether or not a Form  
709 would otherwise be required to be filed for that year).  
reported on Schedule A of Form 709 under the rules contained  
in the gift tax portions of these instructions, including the split gift  
rules. Therefore, transfers made to political organizations,  
transfers made to certain exempt organizations, transfers that  
qualify for the medical or educational exclusions, transfers that  
are fully excluded under the annual exclusion, and most transfers  
made to your spouse are not subject to the GST tax.  
Transfers subject to the GST tax are described in further  
detail in the instructions.  
Certain transfers, particularly transfers to a trust, that are  
Section 2701 Elections  
not subject to gift tax and are therefore not subject to the  
!
The special valuation rules of section 2701 contain three  
elections that you can make only with Form 709.  
CAUTION  
GST tax on Form 709 may be subject to the GST tax at a  
later date. This is true even if the transfer is less than the  
$17,000 annual exclusion. In this instance, you may want to  
apply a GST exemption amount to the transfer on this return or  
on a Notice of Allocation. However, you should be aware that a  
GST exemption may be automatically allocated to the gift if the  
trust that receives the gift is a “GST trust” (as defined under  
section 2632(c)). For more information, see Schedule D, Part  
1. A transferor may elect to treat a qualified payment right that  
the transferor holds (and all other rights of the same class)  
as other than a qualified payment right.  
2. A person may elect to treat a distribution right held by that  
person in a controlled entity as a qualified payment right.  
3. An interest holder may elect to treat as a taxable event the  
payment of a qualified payment that occurs more than 4  
years after its due date.  
The elections described in (1) and (2) must be made on the  
Form 709 that is filed by the transferor to report the transfer that  
is being valued under section 2701. The elections are made by  
-4-  
Instructions for Form 709 (2023)  
   
attaching a statement to Form 709. For information on what must  
be in the statement and for definitions and other details on the  
elections, see section 2701 and Regulations section  
25.2701-2(c).  
PDSs can't deliver items to P.O. boxes. You must use the  
U.S. Postal Service to mail any item to an IRS P.O. box  
address.  
!
CAUTION  
Where To File  
The election described in (3) may be made by attaching a  
statement to the Form 709 filed by the recipient of the qualified  
payment for the year the payment is received. If the election is  
made on a timely filed return, the taxable event is deemed to  
occur on the date the qualified payment is received. If it is made  
on a late-filed return, the taxable event is deemed to occur on the  
first day of the month immediately preceding the month in which  
the return is filed. For information on what must be in the  
statement and for definitions and other details on this election,  
see section 2701 and Regulations section 25.2701-4(d).  
File Form 709 at the following address.  
Department of the Treasury  
Internal Revenue Service Center  
Kansas City, MO 64999  
If using a PDS, file at this address.  
Internal Revenue Service  
333 W. Pershing Road  
Kansas City, MO 64108  
All of the elections may be revoked, but only with the consent  
of the IRS.  
When To File  
Amending Form 709  
Form 709 is an annual return.  
If you find that you must change something on a return that has  
already been filed, you should:  
Generally, you must file Form 709 no earlier than January 1,  
but not later than April 15, of the year after the gift was made.  
However, in instances when April 15 falls on a Saturday, Sunday,  
or legal holiday, Form 709 will be due on the next business day.  
See section 7503.  
File another Form 709;  
Enter “Supplemental Information” across the top of page 1 of  
the form;  
Include a statement of what has changed, along with the  
supporting information; and  
If the donor died during 2023, the executor must file the  
donor's 2023 Form 709 not later than the earlier of:  
Attach a copy of the original Form 709 that has already been  
filed.  
The due date (with extensions) for filing the donor's estate  
tax return; or  
For the mailing address for a supplemental Form 709, see  
Filing Estate and Gift Tax Returns. File the amended Form 709 at  
April 15, 2024, or the extended due date granted for filing  
the donor's gift tax return.  
the following address.  
Internal Revenue Service Center  
Attn: E&G, Stop 824G  
Extension of Time To File  
There are two methods of extending the time to file the gift tax  
return. Neither method extends the time to pay the gift or GST  
taxes. If you want an extension of time to pay the gift or GST  
taxes, you must request that separately. See Regulations section  
25.6161-1.  
7940 Kentucky Drive  
Florence, KY 41042-2915  
If using a PDS, file at this address.  
Internal Revenue Service Center  
Attn: E&G, Stop 824G  
By extending the time to file your income tax return. Any  
extension of time granted for filing your calendar year 2023  
federal income tax return will also automatically extend the time  
to file your 2023 federal gift tax return. Income tax extensions are  
made by using Form 4868, Application for Automatic Extension  
of Time To File U.S. Individual Income Tax Return, or Form 2350,  
Application for Extension of Time To File U.S. Income Tax  
Return. You may only use these forms to extend the time for filing  
your gift tax return if you are also requesting an extension of time  
to file your income tax return.  
7940 Kentucky Drive  
Florence, KY 41042-2915  
If you have already been notified that the return has been  
selected for examination, you should provide the additional  
information directly to the office conducting the examination.  
See the Caution under Lines 12–18. Split Gifts, later,  
before you mail the return.  
TIP  
By filing Form 8892. If you do not request an extension for your  
income tax return, use Form 8892, Application for Automatic  
Extension of Time To File Form 709 and/or Payment of Gift/  
Generation-Skipping Transfer Tax, to request an automatic  
6-month extension of time to file your federal gift tax return. In  
addition to containing an extension request, Form 8892 also  
serves as a payment voucher (Form 8892-V) for a balance due  
on federal gift taxes for which you are extending the time to file.  
For more information, see Form 8892.  
Adequate Disclosure  
To begin the running of the statute of limitations for a gift,  
the gift must be adequately disclosed on Form 709 (or  
!
CAUTION  
an attached statement) filed for the year of the gift.  
In general, a gift will be considered adequately disclosed if  
the return or statement includes the following.  
A full and complete Form 709.  
Private Delivery Services (PDSs)  
A description of the transferred property and any  
consideration received by the donor.  
Filers can use certain PDSs designated by the IRS to meet the  
“timely mailing as timely filing” rule for tax returns. Go to  
IRS.gov/PDS for the current list of designated services.  
The identity of, and relationship between, the donor and  
each donee.  
If the property is transferred in trust, the trust's employer  
identification number (EIN) and a brief description of the  
terms of the trust (or a copy of the trust instrument in lieu of  
the description).  
The PDS can tell you how to get written proof of the mailing  
date.  
For the IRS mailing address to use if you're using a PDS, go  
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Instructions for Form 709 (2023)  
       
Either a qualified appraisal or a detailed description of the  
method used to determine the fair market value of the gift.  
you will be subject to the gift tax (and GST tax, if applicable) if  
you dispose of all or part of your life income interest (by gift, sale,  
or otherwise).  
See Regulations section 301.6501(c)-1(e) and (f) for details,  
including what constitutes a qualified appraisal, the information  
required if no appraisal is provided, and the information required  
for transfers under sections 2701 and 2702.  
Generally, the entire value of the property transferred will be  
treated as a taxable gift less:  
1. The amount you received (if any) for the life income interest;  
and  
Penalties  
2. The amount (if any) determined after the application of  
section 2702, valuing certain retained interests at zero, for  
the life income interest you retained after the transfer.  
Late filing and late payment. Section 6651 imposes penalties  
for both late filing and late payment, unless there is reasonable  
cause for the delay.  
Reasonable-cause determinations. If you receive a notice  
about penalties after you file Form 709, send an explanation and  
we will determine if you meet reasonable-cause criteria. Do not  
attach an explanation when you file Form 709.  
That portion of the property's value that is attributable to the  
remainder interest is a gift of a future interest for which no annual  
exclusion is allowed. To the extent that you transferred the life  
income interest without receiving any value in return, the transfer  
is a gift, and you may claim an annual exclusion, treating the  
person to whom you transferred the interest as the donee for  
purposes of figuring the annual exclusion.  
There are also penalties for willful failure to file a return on  
time, willful attempt to evade or defeat payment of tax, and  
valuation understatements that cause an underpayment of the  
tax. A substantial valuation understatement occurs when the  
reported value of property entered on Form 709 is 65% or less of  
the actual value of the property. A gross valuation  
Specific Instructions  
Part 1—General Information  
Line 3. Donor’s Social Security Number  
Enter your social security number (SSN), if applicable, or your  
individual taxpayer identification number (ITIN), but only if you  
have previously used the ITIN to file other U.S. tax returns. If you  
do not have an SSN or a previously used ITIN, the IRS will  
assign an Internal Revenue Service Number (IRSN) to you. If  
you have already been assigned an IRSN, please enter the  
number on line 3. If you do not have a SSN, ITIN, or IRSN, leave  
line 3 blank.  
understatement occurs when the reported value listed on the  
Form 709 is 40% or less of the actual value of the property.  
Return preparer. Penalties may also be applied to tax return  
preparers, including gift tax return preparers.  
Gift tax return preparers who prepare any return or claim for  
refund that reflects an understatement of tax liability due to an  
unreasonable position are subject to a penalty equal to the  
greater of $1,000 or 50% of the income earned (or to be earned)  
for the preparation of each such return.  
Gift tax return preparers who prepare any return or claim for  
refund with an understatement of tax liability due to willful or  
reckless conduct can be penalized $5,000 or 75% of the income  
derived (or to be derived) for the preparation of the return.  
Gift tax return preparers who prepare any return or claim for a  
refund are required to furnish a copy to the taxpayer, sign the  
return, and provide their PTIN, but who fail to do so, are subject  
to a penalty of $50 for such failure, unless it is shown that such  
failure is due to reasonable cause and not due to willful neglect.  
See section 6694, the related regulations, and Ann. 2009-15,  
2009-11 I.R.B. 687, available at IRS.gov/pub/irs-irbs/  
irb09-11.pdf, for more information.  
Lines 4 and 6. Address  
Enter your current mailing address.  
Foreign address. If your address is outside of the United  
States or its territories, enter the information as follows: city,  
province or state, and name of country. Follow the country's  
practice for entering the postal code. Do not abbreviate the  
country name.  
Line 5. Legal Residence (Domicile)  
In general, your legal residence (also known as your domicile) is  
acquired by living in a place, for even a brief period of time, with  
no definite present intention of moving from that place.  
Joint Tenancy  
If you buy property with your own funds and the title to the  
property is held by you and a donee as joint tenants with right of  
survivorship and if either you or the donee may give up those  
rights by severing your interest, you have made a gift to the  
donee in the amount of half the value of the property.  
Enter the state of the United States (including the District of  
Columbia) or a foreign country in which you legally reside or are  
domiciled at the time of the gift.  
If you create a joint bank account for yourself and a donee (or  
a similar kind of ownership by which you can get back the entire  
fund without the donee's consent), you have made a gift to the  
donee when the donee draws on the account for the donee’s  
own benefit. The amount of the gift is the amount that the donee  
took out without any obligation to repay you.  
If you buy a U.S. savings bond registered as payable to  
yourself or a donee, there is a gift to the donee when the donee  
cashes the bond without any obligation to account to you.  
Line 7. Citizenship  
Enter your citizenship.  
The term “citizen of the United States” includes a person who,  
at the time of making the gift:  
Was domiciled in a territory of the United States,  
Was a U.S. citizen, and  
Became a U.S. citizen for a reason other than being a citizen  
of a U.S. territory or being born or residing in a territory.  
Transfer of Certain Life Estates  
Received From Spouse  
A nonresident not a citizen of the United States includes a  
person who, at the time of making the gift:  
Was domiciled in a territory of the United States,  
Was a U.S. citizen, and  
If you received a qualified terminable interest (see Line 12.  
Schedule A, later) from your spouse for which a marital  
Became a U.S. citizen only because that person was a  
citizen of a territory or was born or resided in a territory.  
deduction was elected on your spouse's estate or gift tax return,  
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Instructions for Form 709 (2023)  
         
Lines 12–18. Split Gifts  
When the Consenting Spouse Must Also File a Gift  
Tax Return  
A married couple may not file a joint gift tax return.  
However, if after reading the instructions below, you and  
your spouse agree to split your gifts, you should file both  
!
In general, if you and your spouse elect gift splitting, then both  
spouses must file their own individual gift tax return.  
CAUTION  
of your individual gift tax returns together (that is, in the same  
envelope) to help the IRS process the returns and to avoid  
correspondence from the IRS.  
However, only one spouse must file a return if the  
requirements of either of the exceptions below are met. In these  
exceptions, gifts means transfers (or parts of transfers) that do  
not qualify for the political organization, educational, or medical  
exclusions.  
If you and your spouse both consent, all gifts (including gifts  
of property held with your spouse as joint tenants or tenants by  
the entirety) either of you make to third parties during the  
calendar year will be considered as made one-half by each of  
you if all of the following apply.  
Exception 1. During the calendar year:  
Only one spouse made any gifts,  
You and your spouse were married to one another at the  
time of the gift.  
The total value of these gifts to each third-party donee does  
not exceed $34,000, and  
If divorced or widowed after the gift, you did not remarry  
during the rest of the calendar year.  
All of the gifts were of present interests.  
Neither of you was a nonresident not a citizen of the United  
States at the time of the gift.  
Exception 2. During the calendar year:  
Only one spouse (the donor spouse) made gifts of more  
than $17,000 but not more than $34,000 to any third-party  
donee,  
You did not give your spouse a general power of  
appointment over the property interest transferred.  
The only gifts made by the other spouse (the consenting  
spouse) were gifts of not more than $17,000 to third-party  
donees other than those to whom the donor spouse made  
gifts, and  
If you transferred property partly to your spouse and partly to  
third parties, you can only split the gifts if the interest transferred  
to the third parties is ascertainable at the time of the gift.  
The consent is effective for the entire calendar year;  
therefore, all gifts made by both you and your spouse to third  
parties during the calendar year (while you were married) must  
be split.  
All of the gifts by both spouses were of present interests.  
If either of the above exceptions is met, only the donor  
spouse must file a return and the consenting spouse signifies  
consent on that return.  
If the consent is effective, the liability for the entire gift tax of  
each spouse is joint and several.  
Specific instructions for Part 2—Tax Computation are  
discussed later. Because you must complete Schedules A, B, C,  
and D to fill out Part 2, you will find instructions for these  
schedules later.  
If you meet these requirements and want your gifts to be  
considered made one-half by you and one-half by your spouse,  
check the “Yes” box on line 12, complete lines 13 through 17,  
and have your spouse sign the consent on line 18.  
Line 19. Application of DSUE Amount  
If the donor is a citizen or resident of the United States and the  
spouse died after December 31, 2010, the donor may be eligible  
to use the deceased spouse's unused exclusion (DSUE)  
amount. The executor of the spouse's estate must have elected  
on Form 706 to allow use of the unused exclusion amount. See  
the instructions for Form 706, Part 6—Portability of Deceased  
Spousal Unused Exclusion. If the executor of the estate made  
this election, attach the first four pages of Form 706 filed by the  
estate. Include any attachments related to DSUE that were filed  
with Form 706 and calculations of any adjustments to the DSUE  
amount like audit reports or previously filed Forms 709. Please  
see Rev. Proc. 2022-32, which provides an update to the  
simplified method for making a late DSUE election for certain  
qualifying taxpayers (superseding Rev. Proc. 2017-34). See also  
section 2010(c)(4) and related regulations.  
If you are not married or do not wish to split gifts, skip to  
line 19.  
Line 15. If you were married to one another for all of 2023,  
check the “Yes” box and skip to line 17. If you were married for  
only part of the year, check the “No” box and go to line 16. If you  
were divorced or widowed after you made the gift, you cannot  
elect to split gifts if you remarried before the end of 2023.  
Line 16. Check the box that explains the change in your marital  
status during the year and give the date you were married,  
divorced, or widowed.  
Consent of Spouse  
Your spouse must sign the consent for your gift-splitting election  
to be valid. The consent may generally be signed at any time  
after the end of the calendar year. However, there are two  
exceptions.  
Using the checkboxes provided, indicate whether the donor is  
applying or has applied a DSUE amount from a predeceased  
spouse to gifts reported on this or a previous Form 709. If so,  
complete Schedule C before going to Part 2—Tax Computation,  
later.  
1. The consent may not be signed after April 15 following the  
end of the year in which the gift was made. But if neither you  
nor your spouse has filed a gift tax return for the year on or  
before that date, the consent must be made on the first gift  
tax return for the year filed by either of you.  
Line 20. Digital Assets  
If you reported on this Form 709 any transfer that includes a  
digital asset (or a financial interest in a digital asset), answer  
Yes” to the question on Line 20. Do not leave the question  
unanswered. You must answer “Yes” or “No” by checking the  
appropriate box.  
2. The consent may not be signed after a notice of deficiency  
for the gift tax for the year has been sent to either you or  
your spouse.  
The executor for a deceased spouse or the guardian for a  
legally incompetent spouse may sign the consent.  
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Instructions for Form 709 (2023)  
   
in which the contribution is made. Also attach an explanation that  
includes the following.  
Schedule A. Computation of Taxable  
Gifts  
The total amount contributed per individual beneficiary.  
The amount for which the election is being made.  
The name of the individual for whom the contribution was  
made.  
Do not enter on Schedule A any gift or part of a gift that qualifies  
for the political organization, educational, or medical exclusions.  
In the instructions below, gifts means transfers (or parts of  
transfers) that do not qualify for the political organization,  
educational, or medical exclusions.  
If you are electing gift splitting, apply the gift-splitting rules  
before applying the QTP rules. Each spouse would then decide  
individually whether to make this QTP election.  
Line A. Valuation Discounts  
Contributions to QTPs do not qualify for the education  
If the value of any gift you report in either Part 1, Part 2, or Part 3  
of Schedule A includes a discount for lack of marketability, a  
minority interest, a fractional interest in real estate, blockage,  
market absorption, or for any other reason, answer “Yes” to the  
question at the top of Schedule A. Also attach an explanation  
giving the basis for the claimed discounts and showing the  
amount of the discounts taken.  
exclusion.  
!
CAUTION  
How To Complete Parts 1, 2, and 3  
After you determine which gifts you made in 2023 that are  
subject to the gift tax, list them on Schedule A. You must divide  
these gifts between:  
1. Part 1—those subject only to the gift tax (gifts made to  
Tax, later),  
Line B. Qualified Tuition Programs (529 Plans or  
Programs)  
If in 2023, you contributed more than $17,000 to a qualified  
tuition plan (QTP) on behalf of any one person, you may elect to  
treat up to $85,000 of the contribution for that person as if you  
had made it ratably over a 5-year period. The election allows you  
to apply the annual exclusion to a portion of the contribution in  
each of the 5 years, beginning in 2023. You can make this  
election for as many separate people as you made QTP  
contributions.  
2. Part 2—those subject to both the gift and GST taxes (gifts  
made to skip persons—see Gifts Subject to Both Gift and  
3. Part 3—those subject only to the gift tax at this time but  
which could later be subject to GST tax (gifts that are  
Transfers in Trust, later).  
You can only apply the election to a maximum of $85,000.  
You must report all of your 2023 QTP contributions for any single  
person that exceed $85,000 (in addition to any other gifts you  
made to that person).  
If you need more space, attach a separate sheet using the  
same format as Schedule A.  
Use the following guidelines when entering gifts on  
Schedule A.  
TIP  
For each of the 5 years, you report in Part 1 of Schedule A  
one-fifth (20%) of the amount for which you made the election. In  
column E of Part 1 (Schedule A), list the date of the gift as the  
calendar year for which you are deemed to have made the gift  
(that is, the year of the current Form 709 you are filing). Do not  
list the actual year of contribution for subsequent years.  
Enter a gift only once—in Part 1, Part 2, or Part 3.  
Do not enter any gift or part of a gift that qualified for the  
political organization, educational, or medical exclusion.  
Enter gifts under “Gifts made by spouse” only if you have  
chosen to split gifts with your spouse and your spouse is  
required to file a Form 709 (see Part 1—General  
However, if in any of the last 4 years of the election, you did  
not make any other gifts that would require you to file a Form  
709, you do not need to file Form 709 to report that year's portion  
of the election amount.  
Example. In 2023, D contributed $100,000 to a QTP for the  
benefit of A. D elects to treat $85,000 of this contribution as  
having been made ratably over a 5-year period. Accordingly, for  
2023, D reports the following.  
In column F, enter the full value of the gift (including those  
made by your spouse, if applicable). If you have chosen to  
split gifts, that one-half portion of the gift is entered in  
column G.  
Gifts to Donees Other Than Your Spouse  
You must always enter all gifts of future interests that you made  
during the calendar year regardless of their value.  
$15,000  
(the amount of the contribution that exceeded  
$85,000)  
+
$17,000  
$32,000  
(the 1/5 portion from the election)  
Gift splitting not elected. If the total gifts of present interests  
to any donee are more than $17,000 in the calendar year, then  
you must enter all such gifts that you made during the year to or  
on behalf of that donee, including those gifts that will be  
excluded under the annual exclusion. If the total is $17,000 or  
less, you need not enter on Schedule A any gifts (except gifts of  
future interests) that you made to that donee. Enter these gifts in  
the top half of Part 1, 2, or 3, as applicable.  
the total gift to A listed in Part 1 of Schedule A for  
2023  
In 2024, D gives a gift of $20,000 cash to B and no other gifts.  
On 2024 Form 709, D reports in Part 1 of Schedule A the  
$20,000 gift to B and a $17,000 gift to A (the one-fifth portion of  
the 2023 gift that is treated as made in 2024). In column E of Part  
1 (Schedule A), D lists “2024” as the date of the gift.  
Gift splitting elected. Enter on Schedule A the entire value of  
every gift you made during the calendar year while you were  
married, even if the gift's value will be less than $17,000 after it is  
split in column G of Part 1, 2, or 3 of Schedule A.  
D makes no gifts in 2025, 2026, or 2027. D is not required to  
file Form 709 in any of those years to report the one-fifth portion  
of the QTP gift because D is not otherwise required to file Form  
709.  
Gifts made by spouse. If you elected gift splitting and your  
spouse made gifts, list those gifts in the space below “Gifts made  
by spouse” in Part 1, 2, or 3. Report these gifts in the same way  
you report gifts you made.  
You make the election by checking the box on line B at the top  
of Schedule A. The election must be made for the calendar year  
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Instructions for Form 709 (2023)  
   
Note. If the property transferred in the direct skip would have  
been includible in the donor's estate if the donor died  
immediately after the transfer, see Transfers Subject to an Estate  
To determine if a gift “is of an interest in property” and “is  
made to a skip person,” you must first determine if the donee is a  
“natural person” or a “trust,as defined below.  
Gifts to Your Spouse  
Except for the gifts described below, you do not need to enter  
any of your gifts to your spouse on Schedule A.  
Terminable interests. Terminable interests are defined in the  
instructions for Part 4, line 4. If all the terminable interests you  
gave to your spouse qualify as life estates with power of  
appointment (defined under Life estate with power of  
appointment, later), you do not need to enter any of them on  
Schedule A.  
However, if you gave your spouse any terminable interest that  
does not qualify as a life estate with power of appointment, you  
must report on Schedule A all gifts of terminable interests you  
made to your spouse during the year.  
Trust. For purposes of the GST tax, a trust includes not only an  
ordinary trust, but also any other arrangement (other than an  
estate) that although not explicitly a trust, has substantially the  
same effect as a trust. For example, a trust includes life estates  
with remainders, terms for years, and insurance and annuity  
contracts. A transfer of property that is conditional on the  
occurrence of an event is a transfer in trust.  
Charitable remainder trusts. If you make a gift to a charitable  
remainder trust and your spouse is the only noncharitable  
beneficiary (other than yourself), the interest you gave to your  
spouse is not considered a terminable interest and, therefore,  
should not be shown on Schedule A. See section 2523(g)(1).  
For definitions and rules concerning these trusts, see section  
2056(b)(8)(B).  
Interest in property. If a gift is made to a natural person, it is  
always considered a gift of an interest in property for purposes of  
the GST tax.  
If a gift is made to a trust, a natural person will have an  
interest in the property transferred to the trust if that person  
either has a present right to receive income or corpus from the  
trust (such as an income interest for life) or is a permissible  
current recipient of income or corpus from the trust (for example,  
possesses a general power of appointment).  
Future interest. Generally, you should not report a gift of a  
future interest to your spouse unless the future interest is also a  
terminable interest that is required to be reported as described  
earlier. However, if you gave a gift of a future interest to your  
spouse and you are required to report the gift on Form 709  
because you gave the present interest to a donee other than  
your spouse, then you should enter the entire gift, including the  
future interest given to your spouse, on Schedule A. You should  
later, to determine whether to enter the gift on Schedule A, Part  
1, 2, or 3.  
Skip person. A donee, who is a natural person, is a skip person  
if that donee is assigned to a generation that is two or more  
generations below the generation assignment of the donor. See  
A donee that is a trust is a skip person if all the interests in the  
property transferred to the trust (as defined above) are held by  
skip persons.  
A trust will also be a skip person if there are no interests in the  
property transferred to the trust held by any person, and future  
distributions or terminations from the trust can be made only to  
skip persons.  
Spouses who are not U.S. citizens. If your spouse is not a  
U.S. citizen and you gave your spouse a gift of a future interest,  
you must report on Schedule A all gifts to your spouse for the  
year. If all gifts to your spouse were present interests, do not  
report on Schedule A any gifts to your spouse if the total of such  
gifts for the year does not exceed $175,000 and all gifts in  
excess of $17,000 would qualify for a marital deduction if your  
spouse were a U.S. citizen (see the instructions for Schedule A,  
Part 4, line 4). If the gifts exceed $175,000, you must report all of  
the gifts even though some may be excluded.  
Nonskip person. A nonskip person is any donee who is not a  
skip person.  
Determining the Generation of a Donee  
Generally, a generation is determined along family lines as  
follows.  
1. If the donee is a lineal descendant of a grandparent of the  
donor (for example, the donor's cousin, niece, nephew,  
etc.), the number of generations between the donor and the  
descendant (donee) is determined by subtracting the  
number of generations between the grandparent and the  
donor from the number of generations between the  
grandparent and the descendant (donee).  
Gifts Subject to Both Gift and GST  
Taxes  
Definitions  
Direct skip. The GST tax you must report on Form 709 is that  
imposed only on inter vivos direct skips. An inter vivos direct skip  
is a transfer that is:  
2. If the donee is a lineal descendant of a grandparent of a  
spouse (or former spouse) of the donor, the number of  
generations between the donor and the descendant  
(donee) is determined by subtracting the number of  
generations between the grandparent and the spouse (or  
former spouse) from the number of generations between  
the grandparent and the descendant (donee).  
Subject to the gift tax,  
Of an interest in property, and  
Made to a skip person.  
All three requirements must be met before the gift is subject to  
the GST tax.  
A gift is “subject to the gift tax” if you are required to list it on  
Schedule A of Form 709. However, if you make a nontaxable gift  
(which is a direct skip) to a trust for the benefit of an individual,  
this transfer is subject to the GST tax unless:  
3. A person who at any time was married to a person  
described in (1) or (2) above is assigned to the generation  
of that person. A person who at any time was married to the  
donor is assigned to the donor's generation.  
1. During the lifetime of the beneficiary, no corpus or income  
may be distributed to anyone other than the beneficiary; and  
4. A relationship by adoption or half-blood is treated as a  
relationship by whole-blood.  
2. If the beneficiary dies before the termination of the trust, the  
assets of the trust will be included in the gross estate of the  
beneficiary.  
A person who is not assigned to a generation according to  
(1), (2), (3), or (4) above is assigned to a generation based on  
the person’s birth date as follows.  
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Instructions for Form 709 (2023)  
     
1. A person who was born not more than 121/2 years after the  
donor is in the donor's generation.  
2. A person born more than 121/2 years, but not more than  
371/2 years, after the donor is in the first generation younger  
than the donor.  
The generation assignment of the youngest living ancestor  
of the individual who is also a descendant of the parent of  
the transferor.  
The same rules apply to the generation assignment of any  
descendant of the individual.  
3. Similar rules apply for a new generation every 25 years.  
This rule does not apply to a transfer to an individual who is  
not a lineal descendant of the transferor if the transferor at the  
time of the transfer has any living lineal descendants.  
If more than one of the rules for assigning generations apply  
to a donee, that donee is generally assigned to the youngest of  
the generations that would apply.  
If any transfer of property to a trust would have been a direct  
skip except for this generation assignment rule, then the rule also  
applies to transfers from the trust attributable to such property.  
Ninety-day rule. For assigning individuals to generations for  
purposes of the GST tax, any individual who dies no later than  
90 days after a transfer occurring by reason of the death of the  
transferor is treated as having predeceased the transferor. The  
90-day rule applies to transfers occurring on or after July 18,  
2005. See Regulations section 26.2651-1(a)(2)(iii) for more  
information.  
If an estate, trust, partnership, corporation, or other entity  
(other than governmental entities and certain charitable  
organizations and trusts, described in sections 511(a)(2) and  
511(b)(2), as discussed later) is a donee, then each person who  
indirectly receives the gift through the entity is treated as a  
donee and is assigned to a generation as explained in the above  
rules.  
Charitable organizations and trusts, described in sections  
511(a)(2) and 511(b)(2), and governmental entities are assigned  
to the donor's generation. Transfers to such organizations are  
therefore not subject to the GST tax. These gifts should always  
be listed in Part 1 of Schedule A.  
Examples  
The GST rules can be illustrated by the following examples.  
Generation assignments under Notice 2017-15. Notice  
2017-15 permits a taxpayer to reduce the GST exemption  
allocated to transfers that were made to or for the benefit of  
transferees whose generation assignment is changed as a result  
of the Windsor decision. A taxpayer’s GST exemption that was  
allocated to a transfer to a transferee (or a trust for the sole  
benefit of such transferee) whose generation assignment should  
have been determined on the basis of a familial relationship as  
the result of the Windsor decision, and are nonskip persons, is  
deemed void. For additional information, go to IRS.gov/  
Taxes.  
Example 1. You give your house to your daughter with the  
remainder then passing to your daughter’s children. This gift is  
made to a “trust” even though there is no explicit trust instrument.  
The interest in the property transferred (the present right to use  
the house) is transferred to a nonskip person (your daughter).  
Therefore, the trust is not a skip person because there is an  
interest in the transferred property that is held by a nonskip  
person, and the gift is not a direct skip. The transfer is an indirect  
skip, however, because on the death of the daughter, a  
termination of your daughter’s interest in the trust will occur that  
may be subject to the GST tax. See the instructions for Part  
discussion of how to allocate GST exemption to such a trust.  
Example 2. You give $100,000 to your grandchild. This gift is  
a direct skip that is not made in trust. You should list it in Part 2 of  
Schedule A.  
Charitable Remainder Trusts  
Gifts in the form of charitable remainder annuity trusts, charitable  
remainder unitrusts, and pooled income funds are not transfers  
to skip persons and therefore are not direct skips. You should  
always list these gifts in Part 1 of Schedule A even if all of the life  
beneficiaries are skip persons.  
Example 3. You establish a trust that is required to  
accumulate income for 10 years and then pay its income to your  
grandchildren for their lives and upon their deaths distribute the  
corpus to their children. Because the trust has no current  
beneficiaries, there are no present interests in the property  
transferred to the trust. All of the persons to whom the trust can  
make future distributions (including distributions upon the  
termination of interests in property held in trust) are skip persons  
(that is, your grandchildren and great-grandchildren). Therefore,  
the trust itself is a skip person and you should list the gift in Part  
2 of Schedule A.  
Example 4. You establish a trust that pays all of its income to  
your grandchildren for 10 years. At the end of 10 years, the  
corpus is to be distributed to your children. Because for this  
purpose interests in trusts are defined only as present interests,  
all of the interests in this trust are held by skip persons (the  
children's interests are future interests). Therefore, the trust is a  
skip person and you should list the entire amount you transferred  
to the trust in Part 2 of Schedule A even though some of the  
trust's ultimate beneficiaries are nonskip persons.  
Generation Assignment Where Intervening  
Parent Is Deceased  
If you made a gift to your grandchild and at the time you made  
the gift, the grandchild's parent (who is your or your spouse's or  
your former spouse's child) is deceased, then for purposes of  
generation assignment, your grandchild is considered to be your  
child rather than your grandchild. Your grandchild's children will  
be treated as your grandchildren rather than your  
great-grandchildren.  
This rule is also applied to your lineal descendants below the  
level of grandchild. For example, if your grandchild is deceased,  
your great-grandchildren who are lineal descendants of the  
deceased grandchild are considered your grandchildren for  
purposes of the GST tax.  
This special rule may also apply in other cases of the death of  
a parent of the transferee. If property is transferred to a  
descendant of a parent of the transferor and that person's parent  
(who is a lineal descendant of the parent of the transferor) is  
deceased at the time the transfer is subject to gift or estate tax,  
then for purposes of generation assignment, the individual is  
treated as a member of the generation that is one generation  
below the lower of:  
Part 1—Gifts Subject Only to Gift Tax  
List in Part 1 gifts subject only to the gift tax. Generally, all of the  
gifts you made to your spouse (that are required to be listed, as  
described earlier), to your children, and to charitable  
organizations are not subject to the GST tax and should  
therefore be listed only in Part 1.  
The transferor's generation, or  
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Instructions for Form 709 (2023)  
 
Group the gifts in four categories.  
improvements, less applicable depreciation, amortization, and  
depletion.  
Gifts made to your spouse.  
Gifts made to third parties that are to be split with your  
spouse.  
For more information on adjusted basis, see Pub. 551, Basis  
of Assets.  
Charitable gifts (if you are not splitting gifts with your  
spouse).  
Other gifts.  
Columns E and F. Date and Value of Gift  
If a transfer results in gifts to two or more individuals (such as a  
life estate to one with remainder to the other), list the gift to each  
separately.  
The value of a gift is the fair market value (FMV) of the property  
on the date the gift is made (valuation date). The FMV is the  
price at which the property would change hands between a  
willing buyer and a willing seller, when neither is forced to buy or  
to sell, and when both have reasonable knowledge of all relevant  
facts. FMV may not be determined by a forced sale price, nor by  
the sale price of the item in a market other than that in which the  
item is most commonly sold to the public. The location of the  
item must be taken into account whenever appropriate.  
Number and describe all gifts (including charitable, public,  
and similar gifts) in the columns provided in Schedule A.  
Column B  
Describe each gift in enough detail so that the property can be  
easily identified, as explained below.  
The FMV of a stock or bond (whether listed or unlisted) is the  
mean between the highest and lowest selling prices quoted on  
the valuation date. If only the closing selling prices are available,  
then the FMV is the mean between the quoted closing selling  
price on the valuation date and on the trading day before the  
valuation date. If there were no sales on the valuation date, figure  
the FMV as follows.  
For real estate, give:  
A legal description of each parcel;  
The street number, name, and area if the property is located  
in a city; and  
A short statement of any improvements made to the  
property.  
1. Find the mean between the highest and lowest selling  
prices on the nearest trading date before and the nearest  
trading date after the valuation date. Both trading dates  
must be reasonably close to the valuation date.  
For bonds, give:  
The number of bonds transferred;  
The principal amount of each bond;  
Name of obligor;  
Date of maturity;  
2. Prorate the difference between mean prices to the valuation  
date.  
Rate of interest;  
Date or dates when interest is payable;  
Series number, if there is more than one issue;  
Exchanges where listed or, if unlisted, give the location of  
the principal business office of the corporation; and  
CUSIP number. The CUSIP number is a nine-digit number  
assigned by the American Banking Association to traded  
securities.  
3. Add or subtract (whichever applies) the prorated part of the  
difference to or from the mean price figured for the nearest  
trading date before the actual valuation date.  
If no actual sales were made reasonably close to the  
valuation date, make the same computation using the mean  
between the bona fide bid and the asked prices instead of sales  
prices. If actual sales prices or bona fide bid and asked prices  
are available within a reasonable period of time before the  
valuation date but not after the valuation date, or vice versa, use  
the mean between the highest and lowest sales prices or bid and  
asked prices as the FMV.  
For stocks:  
Give number of shares;  
State whether common or preferred;  
If preferred, give the issue, par value, quotation at which  
returned, and exact name of corporation;  
If unlisted on a principal exchange, give the location of the  
principal business office of the corporation, the state in  
which incorporated, and the date of incorporation;  
If listed, give principal exchange; and  
CUSIP number.  
Stock of close corporations or inactive stock must be valued  
on the basis of net worth, earnings, earning and dividend  
capacity, and other relevant factors.  
Generally, the best indication of the value of real property is  
the price paid for the property in an arm's-length transaction on  
or before the valuation date. If there has been no such  
transaction, use the comparable sales method. In comparing  
similar properties, consider differences in the date of the sale,  
and the size, condition, and location of the properties, and make  
all appropriate adjustments.  
For interests in property based on the length of a person's life,  
give the date of birth of the person. If you transfer any interest in  
a closely held entity, provide the EIN of the entity.  
For life insurance policies, give the name of the insurer and  
the policy number.  
Clearly identify in the description column which gifts create  
the opening of an ETIP as described under Transfers Subject to  
an Estate Tax Inclusion Period (ETIP), earlier. Describe the  
interest that is creating the ETIP. An allocation of GST exemption  
to property subject to an ETIP that is made prior to the close of  
the ETIP becomes effective no earlier than the date of the close  
of the ETIP. See Schedule D. Computation of GST Tax, later.  
The value of all annuities, life estates, terms for years,  
remainders, or reversions is generally the present value on the  
date of the gift.  
Sections 2701 and 2702 provide special valuation rules to  
determine the amount of the gift when a donor transfers an  
equity interest in a corporation or partnership (section 2701) or  
makes a gift in trust (section 2702). The rules only apply if,  
immediately after the transfer, the donor (or an applicable family  
member) holds an applicable retained interest in the corporation  
or partnership, or retains an interest in the trust. For details, see  
sections 2701 and 2702, and their regulations.  
Column D. Donor's Adjusted Basis of Gifts  
Show the basis you would use for income tax purposes if the gift  
were sold or exchanged. Generally, this means cost plus  
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Instructions for Form 709 (2023)  
an ETIP on Schedule A. Rather, report the transfer subject to an  
ETIP on Schedule D. See Schedule D, Part  
Column G. Split Gifts  
1—Generation-Skipping Transfers, later. Report all other gifts  
made during the year on Schedule A as you normally would.  
Enter an amount in this column only if you have chosen to split  
gifts with your spouse.  
Split Gifts—Gifts Made by Spouse  
Split Gifts—Gifts Made by Spouses  
See this heading under Part 1.  
If you elected to split gifts with your spouse and your spouse has  
given a gift(s) that is being split with you, enter in this area of Part  
1 information on the gift(s) made by your spouse. If only you  
made gifts and you are splitting them with your spouse, do not  
make an entry in this area.  
Part 3—Indirect Skips and Other Transfers in  
Trust  
Some gifts made to trusts are subject only to gift tax at the time  
of the transfer but may later be subject to GST tax. The GST tax  
could apply either at the time of a distribution from the trust, at  
the termination of the trust, or both.  
Generally, if you elect to split your gifts, you must split all gifts  
made by you and your spouse to third-party donees. The only  
exception is if you gave your spouse a general power of  
appointment over a gift you made.  
Section 2632(c) defines indirect skips and applies special  
rules to the allocation of GST exemption to such transfers. In  
general, an indirect skip is a transfer of property that is subject to  
gift tax (other than a direct skip) and is made to a GST trust. A  
GST trust is a trust that could have a GST with respect to the  
transferor, unless the trust provides for certain distributions of  
trust corpus to nonskip persons. See section 2632(c)(3)(B) for  
details.  
Supplemental Documents  
To support the value of your gifts, you must provide information  
showing how it was determined.  
For stock of close corporations or inactive stock, attach  
balance sheets, particularly the one nearest the date of the gift,  
and statements of net earnings or operating results and  
dividends paid for each of the 5 preceding years.  
List in Part 3 those gifts that are indirect skips as defined in  
section 2632(c) or may later be subject to GST tax. This includes  
indirect skips for which election 2, described below, will be made  
in the current year or has been made in a previous year. You  
must list the gifts in Part 3 in the chronological order that you  
made them.  
For each life insurance policy, attach Form 712, Life  
Insurance Statement.  
Note for single premium or paid-up policies. In certain  
situations, for example, where the surrender value of the policy  
exceeds its replacement cost, the true economic value of the  
policy will be greater than the amount shown on line 59 of Form  
712. In these situations, report the full economic value of the  
policy on Schedule A. See Rev. Rul. 78-137, 1978-1 C.B. 280,  
for details.  
Column C. Section 2632(c) Election  
Section 2632(c) provides for the automatic allocation of the  
donor's unused GST exemption to indirect skips. This section  
also sets forth three different elections you may make regarding  
the allocation of exemption.  
If the gift was made by means of a trust, attach a certified or  
verified copy of the trust instrument to the return on which you  
report your first transfer to the trust. However, to report  
subsequent transfers to the trust, you may attach a brief  
description of the terms of the trust or a copy of the trust  
instrument.  
Election 1. You may elect not to have the automatic  
allocation rules apply to the current transfer made to a  
particular trust.  
Election 2. You may elect not to have the automatic rules  
apply to both the current transfer and any and all future  
transfers made to a particular trust.  
Also attach any appraisal used to determine the value of real  
estate or other property.  
Election 3. You may elect to treat any trust as a GST trust for  
purposes of the automatic allocation rules.  
If you do not attach this information, Schedule A must include  
a full explanation of how value was determined.  
See section 2632(c)(5) for details.  
Part 2—Direct Skips  
When to make an election. Election 1 is timely made if it is  
made on a timely filed gift tax return for the year the transfer was  
made or was deemed to have been made.  
List in Part 2 only those gifts that are currently subject to both the  
gift and GST taxes. You must list the gifts in Part 2 in the  
chronological order that you made them. Number, describe, and  
value the gifts as described in the instructions for Part 1.  
Elections 2 and 3 may be made on a timely filed gift tax return  
for the year for which the election is to become effective.  
If you made a transfer to a trust that was a direct skip, list the  
entire gift as one line entry in Part 2.  
To make one of these elections, check column C next to the  
transfer to which the election applies. You must also attach an  
explanation as described below. If you are making election 2 or 3  
on a return on which the transfer is not reported, simply attach  
the statement described below.  
Column C. Section 2632(b) Election  
If you elect under section 2632(b)(3) to not have the automatic  
allocation rules of section 2632(b) apply to a transfer, enter a  
check in column C next to the transfer. You must also attach a  
statement to Form 709 clearly describing the transaction and the  
extent to which the automatic allocation is not to apply. Reporting  
a direct skip on a timely filed Form 709 and paying the GST tax  
on the transfer will qualify as such a statement.  
If you are reporting a transfer to a trust for which election 2 or  
3 was made on a previously filed return, do not make an entry in  
column C for that transfer and do not attach a statement.  
Attachment. Attach a statement to Form 709 that describes the  
election you are making and clearly identifies the trusts and/or  
transfers to which the election applies.  
How to report GSTs after the close of an ETIP. If you are  
reporting a GST that was subject to an ETIP (provided the ETIP  
closed as a result of something other than the death of the  
transferor; see Form 706), do not include the transfer subject to  
Split Gifts—Gifts Made by Spouse  
See this heading under Part 1.  
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Instructions for Form 709 (2023)  
   
A partial interest in property is treated as a specific portion of  
an entire interest only if the rights of your spouse to the income  
and to the power are a fractional or percentile share of the entire  
property interest. This means that the interest or share will reflect  
any increase or decrease in the value of the entire property  
interest. If the spouse is entitled to receive a specified sum of  
income annually, the capital amount that would produce such a  
sum will be considered the specific portion from which the  
spouse is entitled to receive the income.  
Part 4—Taxable Gift Reconciliation  
Line 1  
Enter only gifts of the donor. If gift splitting has been elected,  
enter only the value of the gift that is attributable to the spouse  
that is filing the return.  
Line 2  
Election to deduct qualified terminable interest property  
(QTIP). You may elect to deduct a gift of a terminable interest if  
it meets requirements (1), (2), and (4) earlier, even though it  
does not meet requirement (3).  
You make this election simply by listing the QTIP on  
Schedule A and deducting its value from Schedule A, Part 4,  
line 4. You are presumed to have made the election for all  
qualified property that you both list and deduct on Schedule A.  
You may not make the election on a late-filed Form 709.  
Enter the total annual exclusions you are claiming for the gifts  
listed on Schedule A. See Annual Exclusion, earlier. If you split a  
gift with your spouse, the annual exclusion you claim against that  
gift may not be more than the smaller of your half of the gift or  
$17,000.  
Deductions  
Line 4. Marital Deduction  
Enter all of the gifts to your spouse that you listed on Schedule A  
and for which you are claiming a marital deduction. Do not enter  
any gift that you did not include on Schedule A. On the dotted  
line on line 4, indicate which numbered items from Schedule A  
are gifts to your spouse for which you are claiming the marital  
deduction.  
Line 5  
Enter the amount of the annual exclusions that were claimed for  
the gifts listed on line 4.  
Line 7. Charitable Deduction  
Do not enter on line 4 any gifts to your spouse who was  
not a U.S. citizen at the time of the gift.  
TIP  
You may deduct from the total gifts made during the calendar  
year all gifts you gave to or for the use of:  
You may deduct all gifts of nonterminable interests made  
during the year that you entered on Schedule A regardless of  
amount, and certain gifts of terminable interests as outlined  
below.  
The United States, a state or political subdivision of a state,  
or the District of Columbia for exclusively public purposes;  
Any corporation, trust, community chest, fund, or foundation  
organized and operated only for religious, charitable,  
scientific, literary, or educational purposes, or to prevent  
cruelty to children or animals, or to foster national or  
international amateur sports competition (if none of its  
activities involve providing athletic equipment unless it is a  
qualified amateur sports organization), as long as no part of  
the earnings benefits any one person, no substantial  
propaganda is produced, and no lobbying or campaigning  
for any candidate for public office is done;  
Terminable interests. Generally, you cannot take the marital  
deduction if the gift to your spouse is a terminable interest. In  
most instances, a terminable interest is nondeductible if  
someone other than the donee spouse will have an interest in  
the property following the termination of the donee spouse's  
interest. Some examples of terminable interests are:  
A life estate,  
An estate for a specified number of years, or  
Any other property interest that after a period of time will  
terminate or fail.  
A fraternal society, order, or association operating under a  
lodge system, if the transferred property is to be used only  
for religious, charitable, scientific, literary, or educational  
purposes, including the encouragement of art and the  
prevention of cruelty to children or animals; or  
If you transfer an interest to your spouse as sole joint tenant  
with yourself or as a tenant by the entirety, the interest is not  
considered a terminable interest just because the tenancy may  
be severed.  
Any war veterans' organization organized in the United  
States (or any of its territories), or any of its auxiliary  
departments or local chapters or posts, as long as no part of  
any of the earnings benefits any one person.  
Life estate with power of appointment. You may deduct,  
without an election, a gift of a terminable interest if all four  
requirements below are met.  
On line 7, show your total charitable, public, or similar gifts  
1. Your spouse is entitled for life to all of the income from the  
entire interest.  
(minus annual exclusions allowed). On the dotted line, indicate  
which numbered items from the top of Schedule A are charitable  
gifts.  
2. The income is paid yearly or more often.  
3. Your spouse has the unlimited power, while alive or by will,  
to appoint the entire interest in all circumstances.  
Line 10. GST Tax  
4. No part of the entire interest is subject to another person's  
power of appointment (except to appoint it to your spouse).  
If GST tax is due on any direct skips reported on this return, the  
amount of that GST tax is also considered a gift and must be  
added to the value of the direct skip reported on this return.  
If either the right to income or the power of appointment given  
to your spouse pertains only to a specific portion of a property  
interest, the marital deduction is allowed only to the extent that  
the rights of your spouse meet all four of the above conditions.  
For example, if your spouse is to receive all of the income from  
the entire interest, but only has a power to appoint one-half of the  
entire interest, then only one-half qualifies for the marital  
deduction.  
If you entered gifts on Part 2, or if you and your spouse  
elected gift splitting and your spouse made gifts subject to the  
GST tax that you are required to show on your Form 709,  
complete Schedule D, and enter on line 10 the total from  
Schedule D, Part 3, column G. Otherwise, enter zero on line 10.  
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Instructions for Form 709 (2023)  
 
under which the returns were filed. If there was any other  
variation in the names under which you filed, such as the use of  
full given names instead of initials, please explain.  
Line 12. Election Out of QTIP Treatment of  
Annuities  
Section 2523(f)(6) creates an automatic QTIP election for gifts of  
joint and survivor annuities where the spouses are the only  
possible recipients of the annuity prior to the death of the last  
surviving spouse.  
Column C  
To determine the amount of applicable credit (formerly unified  
credit) used for gifts made after 1976, use the Worksheet for  
unless your prior gifts total $500,000 or less.  
The donor spouse can elect out of QTIP treatment, however,  
by checking the box on line 12 and entering the item number  
from Schedule A for the annuities for which you are making the  
election. Any annuities entered on line 12 cannot also be entered  
on line 4 of Schedule A, Part 4. Any such annuities that are not  
listed on line 12 must be entered on line 4 of Part 4, Schedule A.  
If there is more than one such joint and survivor annuity, you are  
not required to make the election for all of them. Once made, the  
election is irrevocable.  
Prior gifts totaling $500,000 or less. In column C, enter the  
amount of applicable credit actually applied in the prior period.  
Prior gifts totaling over $500,000. See Redetermining the  
Column D  
In column D, enter the amount of specific exemption claimed for  
gifts made in periods ending before January 1, 1977.  
Column E  
Schedule B. Gifts From Prior Periods  
In column E, show the correct amount (the amount finally  
determined) of the taxable gifts for each earlier period.  
If you did not file gift tax returns for previous periods, check the  
“No” box on page 1 of Form 709, line 11a, of Part 1—General  
Information. If you filed gift tax returns for previous periods,  
check the “Yes” box on line 11a and complete Schedule B by  
listing the years or quarters in chronological order as described  
below. If you need more space, attach a separate sheet using  
the same format as Schedule B.  
See Regulations section 25.2504-2 for rules regarding the  
final determination of the value of a gift.  
Note. Amounts shown in column E should reflect all taxable  
gifts, even if no gift tax was paid due to the applicable (formerly  
unified) credit.  
Complete Schedule A before beginning Schedule B.  
!
Redetermining the Applicable Credit  
CAUTION  
To redetermine the applicable credit for prior gifts in excess of  
Column A  
If you filed returns for gifts made before 1971 or after 1981, show  
the calendar years in column A. If you filed returns for gifts made  
after 1970 and before 1982, show the calendar quarters.  
Column B  
In column B, identify the IRS office where you filed the returns. If  
you have changed your name, be sure to list any other names  
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Instructions for Form 709 (2023)  
     
Instructions for Worksheet for Schedule B, Column C (Credit Allowable for Prior Periods)  
Beginning with the earliest year after 1976 in which gifts using a credit amount were made, determine the credit amount (at current rates) for each  
quarter/year as follows.  
Column  
A
Enter the quarter/year of the prior gift(s). Pre-1977 gifts will be on the first row.  
Period  
B
Enter the amount of all taxable gifts for the year in column A. The total of all pre-1977 gifts should  
be combined in the first row.  
Taxable Gifts for Current Period  
C
Enter the amount from column D of the previous row.  
Enter the sum of columns B and C from the current row.  
Enter the amount from column F of the previous row.  
Taxable Gifts for Prior Periods  
D
Cumulative Taxable Gifts Including Current Period  
E
Tax on Gifts for Prior Periods  
F
Enter the tax based on the amount in column D of the current row using the Table for Computing  
Tax on Cumulative Gifts Including Current Period  
G
Subtract the amount in column E from the amount in column F of the current row and enter here.  
Tax on Gifts for Current Period  
H
Enter the sum of (a) total DSUE amount (if any) received from the estate of the donor's last  
deceased spouse and used by the donor in prior periods and the current period, and (b)  
Restored Exclusion Amount (if any). DSUE may not be applied to gifts made before the DSUE  
arose. Restored Exclusion Amount may not be applied to gifts made before the taxpayer restored  
the exclusion expended on a taxable gift to the taxpayer's same-sex spouse. The Restored  
Exclusion Amount is applied in the first year that the taxpayer restores the exclusion and every  
subsequent year.  
Used DSUE Amount From Predeceased Spouse(s) and  
Restored Exclusion Amount  
I
Enter the exclusion amount corresponding with the year listed in column A of the current row.  
Basic Exclusion Amount for Year of Gift  
J
Add the amounts in columns H and I of the current row and enter here.  
Applicable Exclusion Amount  
K
Using the Table for Computing Gift Tax, determine the credit corresponding to the amount in  
Applicable Credit Amount (Based on Amount in Column J) column J of the current row and enter here. For each row in column K, subtract 20% of any  
amount allowed as a specific exemption for gifts made after September 8, 1976, and before  
January 1, 1977.  
L
Enter the total of the amounts in columns L and N of the previous row.  
Subtract the amount in column L from the amount in column K of the current row and enter here.  
Enter the lesser of column G or column M of the current row.  
Applicable Credit Amount Used in Prior Periods  
M
Available Credit in Current Period  
N
Credit Allowable  
Repeat this process for each prior year with taxable gifts. Do not enter less than zero.  
Worksheet for Schedule B, Column C (Credit  
Allowable for Prior Periods)  
Prior Years Credit Recalculation (for Form 709, Schedule B, Column C)  
(Keep for your records.)  
A
B
C
D
E
F
G
H
I
J
K
L
M
N
Period  
Taxable  
Gifts for  
Current  
Period  
Taxable  
Cumulative  
Tax on  
Tax on  
Cumulative  
Gifts  
Including  
Current  
Period (Col.  
D)3  
Tax on  
Gifts for  
Current  
Period  
(Col. F –  
Col. E)  
DSUE From  
Pre-  
Basic  
Applicable Applicable  
Applicable  
Credit  
Available  
Credit in  
Current  
Period  
Credit  
Allowable  
(lesser of  
Col. G or  
Col. M)  
Gifts for Taxable Gifts Gifts for  
Exclusion  
Exclusion  
Amount  
(Col. H +  
Col. I)  
Credit  
Prior  
Including  
Current  
Period  
(Col. B + Col.  
C)  
Prior  
deceased for the Year  
Amount  
Amount  
Periods1  
Periods  
Spouse(s)  
and  
Restored  
Exclusion  
Amount  
of Gift4  
Based on Used in Prior  
(Col. C)2, 3  
Column J3, 5  
Periods3, 6 (Col. K – Col.  
L)  
Pre-1977  
YYYY  
YYYY  
YYYY  
Total Applicable Credit Used in Prior Periods (Enter the Total of Column N on Schedule B, Line 1, Column C) :  
1 Column C: Enter amount from column D of the previous row.  
2 Column E: Compute the tax on the amount in column C or enter amount from column F of the previous row.  
3 To compute tax or credit amount, see Table for Computing Gift Tax.  
4 For years prior to 2010, the basic exclusion amount equals the applicable exclusion amount.  
5 For each row in column K, subtract 20% of any amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977.  
6 Enter the total of columns L and N of the previous row.  
-15-  
Instructions for Form 709 (2023)  
 
Example 1. Prior Years Credit Recalculation (for Form 709, Schedule B, Column C)  
(Three post-1976 years involved. All have the same maximum credit available. Tentative tax exceeds available credit.)  
A
B
C
D
E
F
G
H
I
J
K
L
M
N
Period  
Taxable  
Gifts for  
Current  
Period  
Taxable  
Cumulative  
Tax on  
Tax on  
Cumulative  
Gifts  
Including  
Current  
Period (Col.  
D)3  
Tax on  
Gifts for  
Current  
Period  
(Col. F –  
Col. E)  
DSUE From  
Pre-  
Basic  
Applicable Applicable  
Applicable  
Credit  
Available  
Credit in  
Current  
Period  
Credit  
Allowable  
(lesser of  
Col. G or  
Col. M)  
Gifts for Taxable Gifts Gifts for  
Exclusion  
Exclusion  
Amount  
(Col. H +  
Col. I)  
Credit  
Prior  
Including  
Current  
Period  
(Col. B + Col.  
C)  
Prior  
Deceased for Year of  
Amount  
Amount  
Periods1  
Periods  
Spouse(s)  
and  
Restored  
Exclusion  
Amount  
the Gift4  
Based on Used in Prior  
(Col. C)2, 3  
Column J3, 5  
Periods3, 6 (Col. K – Col.  
L)  
Pre-1977  
2004  
800,000  
300,000  
0
800,000  
1,100,000  
1,300,000  
0
267,800  
385,800  
465,800  
267,800  
0
0
0
1,000,000  
1,000,000  
1,000,000  
1,000,000  
1,000,000  
1,000,000  
345,800  
345,800  
345,800  
0
267,800  
345,800  
345,800  
78,000  
0
267,800  
78,000  
0
2007  
800,000  
267,800  
385,800  
118,000  
80,000  
2009  
200,000 1,100,000  
Total Applicable Credit Used in Prior Periods (Enter the Total of Column N on Schedule B, Line 1, Column C) :  
345,800  
1 Column C: Enter amount from column D of the previous row.  
2 Column E: Compute the tax on the amount in column C or enter amount from column F of the previous row.  
3 To compute tax or credit amount, see Table for Computing Gift Tax.  
4 For years prior to 2010, the basic exclusion amount equals the applicable exclusion amount.  
5 For each row in column K, subtract 20% of any amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977.  
6 Enter the total of columns L and N of the previous row.  
Example 2. Prior Years Credit Recalculation (for Form 709, Schedule B, Column C)  
(Pre-1977 gifts plus 3 post-1976 years: Earlier years' gifts exceed credit then available. Last gift made after credit increased.)  
A
B
C
D
E
F
G
H
I
J
K
L
M
N
Period  
Taxable  
Gifts for  
Current  
Period  
Taxable  
Cumulative  
Tax on  
Tax on  
Cumulative  
Gifts  
Including  
Current  
Period (Col.  
D)3  
Tax on  
Gifts for  
Current  
Period  
(Col. F –  
Col. E)  
DSUE From  
Pre-  
Basic  
Applicable Applicable  
Applicable  
Credit  
Available  
Credit in  
Current  
Period  
Credit  
Allowable  
(lesser of  
Col. G or  
Col. M)  
Gifts for Taxable Gifts Gifts for  
Exclusion Exclusion  
Credit  
Prior  
Including  
Current  
Period  
(Col. B + Col.  
C)  
Prior  
Deceased for Year of  
Amount  
(Col. H +  
Col. I)  
Amount  
Amount  
Periods1  
Periods  
Spouse(s)  
and  
Restored  
Exclusion  
Amount  
the Gift4  
Based on Used in Prior  
(Col. C)2, 3  
Column J3, 5  
Periods3, 6 (Col. K – Col.  
L)  
Pre-1977  
1987  
200,000  
200,000  
800,000  
54,800  
267,800  
345,800  
345,840  
600,000  
200,000  
200,000  
800,000  
54,800  
267,800  
345,800  
213,000  
0
0
0
600,000  
600,000  
192,800  
211,300  
345,800  
0
192,800  
211,300  
192,800  
18,500  
192,800  
18,500  
40  
1999  
1,000,000  
1,000,100  
78,000  
40  
650,000  
650,000  
2002  
100 1,000,000  
1,000,000  
1,000,000  
134,500  
Total Applicable Credit Used in Prior Periods (Enter the Total of Column N on Schedule B, Line 1, Column C) :  
211,340  
1 Column C: Enter amount from column D of the previous row.  
2 Column E: Compute the tax on the amount in column C or enter amount from column F of the previous row.  
3 To compute tax or credit amount, see Table for Computing Gift Tax.  
4 For years prior to 2010, the basic exclusion amount equals the applicable exclusion amount.  
5 For each row in column K, subtract 20% of any amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977.  
6 Enter the total of columns L and N of the previous row.  
-16-  
Instructions for Form 709 (2023)  
Example 3. Prior Years Credit Recalculation (for Form 709, Schedule B, Column C)  
($6M gift exceeds the applicable credit, $5M DSUE received prior to subsequent $4M gift in the same year.)  
A
B
C
D
E
F
G
H
I
J
K
L
M
N
Period  
Taxable  
Gifts for  
Current  
Period  
Taxable  
Cumulative  
Tax on  
Tax on  
Cumulative  
Gifts  
Including  
Current  
Period (Col.  
D)3  
Tax on  
Gifts for  
Current  
Period  
(Col. F –  
Col. E)  
DSUE From  
Pre-  
Basic  
Applicable Applicable  
Applicable  
Credit  
Available  
Credit in  
Current  
Period  
Credit  
Allowable  
(lesser of  
Col. G or  
Col. M)  
Gifts for Taxable Gifts Gifts for  
Exclusion Exclusion  
Credit  
Prior  
Including  
Current  
Period  
(Col. B + Col.  
C)  
Prior  
Deceased for Year of  
Amount  
(Col. H +  
Col. I)  
Amount  
Amount  
Periods1  
Periods  
Spouse(s)  
and  
Restored  
Exclusion  
Amount4  
the Gift5  
Based on Used in Prior  
(Col. C)2, 3  
Column J3, 6  
Periods3, 7 (Col. K – Col.  
L)  
Pre-1977  
2011  
10,000,000  
0
10,000,000  
0
3,945,800 3,945,800  
4,000,000  
5,000,000  
9,000,000  
3,545,800  
0
3,545,800  
3,545,800  
3,545,800  
YYYY  
YYYY  
Total Applicable Credit Used in Prior Periods (Enter the Total of Column N on Schedule B, Line 1, Column C) :  
1 Column C: Enter amount from column D of the previous row.  
2 Column E: Compute the tax on the amount in column C or enter amount from column F of the previous row.  
3 To compute tax or credit amount, see Table for Computing Gift Tax.  
4 DSUE may not be applied to gifts made prior to when it arises. Consequently, the available DSUE for the current period is limited to $4,000,000, the value of gifts made after the DSUE arose.  
5 For years prior to 2010, the basic exclusion amount equals the applicable exclusion amount.  
6 For each row in column K, subtract 20% of any amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977.  
7 Enter the total of columns L and N of the previous row.  
Example 4. Prior Years Credit Recalculation (for Form 709, Schedule B, Column C)  
(Prior gift exceeds applicable credit, $5M DSUE received prior to subsequent gift.)  
A
B
C
D
E
F
G
H
I
J
K
L
M
N
Period  
Taxable  
Gifts for  
Current  
Period  
Taxable  
Cumulative  
Tax on  
Tax on  
Cumulative  
Gifts  
Including  
Current  
Period (Col.  
D)3  
Tax on  
Gifts for  
Current  
Period  
(Col. F –  
Col. E)  
DSUE From  
Pre-  
Basic  
Applicable Applicable  
Applicable  
Credit  
Available  
Credit in  
Current  
Period  
Credit  
Allowable  
(lesser of  
Col. G or  
Col. M)  
Gifts for Taxable Gifts Gifts for  
Exclusion Exclusion  
Credit  
Amount  
Prior  
Including  
Current  
Period  
(Col. B + Col.  
C)  
Prior  
Deceased for Year of  
Amount  
(Col. H +  
Col. I)  
Amount  
Periods1  
Periods  
Spouse(s)  
and  
Restored  
Exclusion  
Amount  
the Gift4  
Based on  
Used in Prior  
(Col. C)2, 3  
Column J3, 5  
Periods3, 6 (Col. K – Col.  
L)  
Pre-1977  
2002  
4,000,000  
0
4,000,000  
0
1,545,800 1,545,800  
3,145,800 1,600,000  
0
1,000,000  
5,000,000  
1,000,000  
9,000,000  
345,800  
0
345,800  
345,800  
2011  
4,000,000 4,000,000  
8,000,000 1,545,800  
4,000,000  
3,545,800  
345,800  
3,200,000 1,600,000  
YYYY  
Total Applicable Credit Used in Prior Periods (Enter the Total of Column N on Schedule B, Line 1, Column C) : 1,945,800  
1 Column C: Enter amount from column D of the previous row.  
2 Column E: Compute the tax on the amount in column C or enter amount from column F of the previous row.  
3 To compute tax or credit amount, see Table for Computing Gift Tax.  
4 For years prior to 2010, the basic exclusion amount equals the applicable exclusion amount.  
5 For each row in column K, subtract 20% of any amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977.  
6 Enter the total of columns L and N of the previous row.  
-17-  
Instructions for Form 709 (2023)  
deceased spouse, except to the extent allowed by treaty with the  
surviving spouse’s country of citizenship.  
Table of Basic Exclusion and Credit Amounts  
(as Recalculated for 2023 Rates)  
Last Deceased Spouse Limitation  
The last deceased spouse is the most recently deceased person  
who was married to the surviving spouse at the time of that  
person's death. The identity of the last deceased spouse is  
determined as of the day a taxable gift is made and is not  
impacted by whether the decedent's estate elected portability or  
whether the last deceased spouse had any DSUE amount  
available. Remarriage also does not affect the designation of the  
last deceased spouse and does not prevent the surviving  
spouse from applying the DSUE amount to taxable transfers.  
Period  
Exclusion Amounts Credit Amounts  
1977 (Quarters 1 & 2)  
$30,000  
$120,667  
$6,000  
$30,000  
1977 (Quarters 3 & 4)  
1978  
$134,000  
$34,000  
1979  
$147,333  
$38,000  
1980  
$161,563  
$42,500  
1981  
$175,625  
$47,000  
When a taxable gift is made, the DSUE amount received from  
the last deceased spouse is applied before the surviving  
spouse's basic exclusion amount. A surviving spouse who has  
more than one predeceased spouse is not precluded from using  
the DSUE amount of each spouse in succession. A surviving  
spouse may not use the sum of DSUE amounts from multiple  
predeceased spouses at one time nor may the DSUE amount of  
a predeceased spouse be applied after the death of a  
subsequent spouse.  
1982  
$225,000  
$62,800  
1983  
$275,000  
$79,300  
1984  
$325,000  
$96,300  
1985  
$400,000  
$121,800  
$155,800  
$192,800  
$202,050  
$211,300  
$220,550  
$345,800  
$1,945,800  
$1,993,800  
$2,045,800  
$2,081,800  
$2,117,800  
$2,125,800  
$2,141,800  
$4,417,800  
$4,505,800  
$4,577,800  
$4,625,800  
$4,769,800  
$5,113,800  
1986  
$500,000  
1987 through 1997  
1998  
$600,000  
$625,000  
When a surviving spouse applies the DSUE amount to a  
lifetime gift, the IRS may examine any return of a predeceased  
spouse whose executor elected portability to verify the allowable  
DSUE amount. The DSUE may be adjusted or eliminated as a  
result of the examination; however, the IRS may make an  
assessment of additional tax on the return of a predeceased  
spouse only within the applicable limitations period under  
section 6501.  
1999  
$650,000  
2000 and 2001  
2002 through 2010  
2011  
$675,000  
$1,000,000  
$5,000,000  
$5,120,000  
$5,250,000  
$5,340,000  
$5,430,000  
$5,450,000  
$5,490,000  
$11,180,000  
$11,400,000  
$11,580,000  
$11,700,000  
$12,060,000  
$12,920,000  
2012  
2013  
2014  
Restored Exclusion Amount. Prior to the decision of the  
Supreme Court in United States v. Windsor, 570 U.S. 744, 133  
S. Ct. 2675 (2013), the Defense of Marriage Act (DOMA), Public  
Law 104-199 (110 Stat. 2419), required that marriages of  
couples of the same sex should not be treated as being married  
for federal tax purposes. As a result, taxpayers in a same-sex  
marriage were not entitled to claim a marital deduction for gifts or  
bequests to each other. Those taxpayers were required to use  
their applicable exclusion amount to defray any gift or estate tax  
imposed on the transfer or were required to pay gift or estate  
taxes, to the extent the taxpayer's exclusion previously had been  
exhausted.  
In Windsor, the Supreme Court declared that DOMA was  
unconstitutional. For federal tax purposes, marriages of couples  
of the same sex are treated the same as marriages of couples of  
the opposite sex. The term “spouse” includes an individual  
married to a person of the same sex. However, individuals who  
have entered into a registered domestic partnership, civil union,  
or other similar relationship that isn't considered a marriage  
under state law aren't considered married for federal tax  
purposes.  
Under a new procedure, a donor who made a transfer to the  
donor's same-sex spouse, which resulted in a reduction of the  
donor's applicable exclusion amount, can now recalculate the  
remaining applicable exclusion. This procedure is only available  
to transfers that did not qualify for the marital deduction for  
federal gift tax purposes at the time of the transfer, based solely  
on the application of DOMA. If the limitations period has expired,  
the donor may recalculate the remaining applicable exclusion.  
However, once the limitations period on assessment of tax has  
expired, neither the value of the transferred interest nor any  
position concerning a legal issue (other than the existence of the  
marriage) related to the transfer can be changed. Similarly, no  
credit or refund of the gift taxes paid on the donor's transfer to  
the donor's same-sex spouse can be given once the limitations  
period on claims for credit or refund has expired.  
2015  
2016  
2017  
2018  
2019  
2020  
2021  
2022  
2023  
Schedule C. Portability of Deceased  
Spousal Unused Exclusion (DSUE)  
Amount and Restored Exclusion  
Amount  
Section 303 of the Tax Relief, Unemployment Insurance  
Reauthorization, and Job Creation Act of 2010 authorized  
estates of decedents dying on or after January 1, 2011, to elect  
to transfer any unused exclusion to the surviving spouse. The  
amount received by the surviving spouse is called the deceased  
spousal unused exclusion, or DSUE, amount. If the executor of  
the decedent's estate elects transfer, or portability, of the DSUE  
amount, the surviving spouse can apply the DSUE amount  
received from the estate of the last deceased spouse (defined  
later) against any tax liability arising from subsequent lifetime  
gifts and transfers at death.  
Complete Schedule A before beginning Schedule C.  
!
CAUTION  
Note. A nonresident surviving spouse who is not a citizen of the  
United States may not take into account the DSUE amount of a  
-18-  
Instructions for Form 709 (2023)  
   
The first step of the procedure is to determine the amount of  
applicable exclusion that was expended on a taxable gift to a  
same-sex spouse. In any given year, the amount of applicable  
exclusion expended on a taxable gift to a same-sex spouse is  
equal to the amount of applicable exclusion expended on all  
taxable gifts multiplied by the ratio of the amount of taxable gifts  
to the same-sex spouse over total taxable gifts. The amount of  
applicable exclusion expended on all taxable gifts is equal to the  
lesser of the available applicable exclusion or the amount of all  
taxable gifts.  
Example. In 2011, A made $5 million of taxable gifts. A made  
a $3 million taxable gift to B, same-sex spouse, and a $2 million  
taxable gift to C, another individual. A's marriage to B was  
recognized by the state where they got married, but was not  
recognized by the federal government. The transfer to B would  
qualify for the marital deduction if A's marriage to B was  
recognized by the federal government. A has a basic exclusion  
of $5 million. A had previously used $1 million of the applicable  
exclusion on other gifts in previous years. This means that A had  
$4 million of applicable exclusion available in 2011. Since A's  
available applicable exclusion ($4 million) is less than the  
amount of all taxable gifts for the year ($5 million), A expended  
all $4 million of the available applicable exclusion on all taxable  
gifts during the year.  
spouses, or if the donor is a taxpayer who made a taxable  
transfer to a same-sex spouse which resulted in a reduction of  
the taxpayer's available applicable exclusion amount (or both).  
Schedule C requests information on all DSUE amounts  
received from the donor's last deceased spouse and any  
previously deceased spouses. Each line in the chart should  
reflect a different predeceased spouse. Attach proof of each  
portability election reported on Schedule C.  
Part 1. DSUE Received From the Last Deceased  
Spouse  
In this Part, include information about the DSUE amount from the  
donor's most recently deceased spouse (whose date of death is  
after December 31, 2010). In column E, enter the total of the  
amount in column D that the donor has applied to gifts in  
previous years and is applying to gifts reported on this return. A  
donor may apply DSUE only to gifts made after the DSUE arose.  
Part 2. DSUE Received From Other Predeceased  
Spouse(s)  
Enter information about the DSUE amount from the spouse(s), if  
any, who died prior to the donor's most recently deceased  
spouse (but not before January 1, 2011) if the prior spouse's  
executor elected portability of the DSUE amount. In column D,  
indicate the amount of DSUE received from the estate of each  
predeceased spouse. In column E, enter the portion of the  
amount of DSUE shown in column D that was applied to prior  
lifetime gifts or transfers. A donor may apply DSUE only to gifts  
made after the DSUE arose.  
Example of Calculation of Restored Exclusion  
Amount  
Taxable gifts to B  
_______  
Total taxable  
gifts  
Applicable exclusion  
expended on all  
taxable gifts  
Applicable exclusion  
allocable to gifts to B  
x
=
$3 million  
_______  
$5 million  
Any remaining DSUE from a predeceased spouse  
$4 million  
x
=
$2,400,000  
cannot be applied against tax arising from lifetime gifts if  
!
CAUTION  
that spouse is not the most recently deceased spouse  
on the date of the gift. This rule applies even if the last deceased  
spouse had no DSUE amount or made no valid portability  
election, or if the DSUE amount from the last deceased spouse  
has been fully applied to gifts in previous periods.  
In 2011, A expended $2,400,000 of the applicable exclusion  
on the taxable gift to B.  
The second step of the procedure is to repeat the first step for  
every year where the donor made a taxable gift to a same-sex  
spouse.  
The third step of the procedure is to add up the result for all  
the years. The result is the total amount of applicable exclusion  
expended on the same-sex spouse. This amount of applicable  
exclusion will be restored to the donor for use on future gifts and  
bequests and is known as the Restored Exclusion Amount. Enter  
this amount on line 3 of Schedule C.  
Attach a statement to Form 709 detailing the calculation of  
the above procedure on the first Form 709 that you claim a  
Restored Exclusion Amount.  
Determining the Applicable Credit Amount  
Including DSUE and the Restored Exclusion  
Amount  
On line 1, enter the donor's basic exclusion amount; for 2023,  
this amount is $12,920,000. Add the amounts listed in column E  
from Parts 1 and 2 and enter the total on line 2. On line 3, enter  
the Restored Exclusion Amount. On line 4, enter the total of lines  
1, 2, and 3. Using the Table for Computing Gift Tax, determine  
the donor's applicable credit by applying the appropriate tax rate  
to the amount on line 4. Enter this amount on line 5 and on line 7  
of Part 2—Tax Computation.  
The Restored Exclusion Amount will have to be  
accounted for the donor on every subsequent Form 709  
!
CAUTION  
(and Form 706) that will be filed. This means that on all  
future Forms 709 that will be filed, the Restored Exclusion  
Amount will need to be entered on Schedule C. (The Restored  
Exclusion Amount will be entered on line 9c of Part 2—Tax  
Computation on Form 706.) In addition, the Worksheet for  
should reflect the Restored Exclusion Amount. For the period  
where the applicable exclusion was first restored, and on every  
subsequent period listed on the worksheet, add the Restorable  
Exclusion Amount to the total DSUE amount (if any) and enter  
the sum in column H.  
Schedule D. Computation of GST Tax  
Part 1—Generation-Skipping Transfers  
Enter in Part 1 all of the gifts you listed in Part 2 of Schedule A, in  
the same order and showing the same values. If reporting the  
GST portion of transfers subject to an ETIP, see How to report  
Column A  
Completing Schedule C  
List items from Schedule A, Part 2, column A, in the same order.  
Next, list items to be reported on Schedule D (including ETIP  
transfers), if any.  
Complete Schedule C if the donor is a surviving spouse who  
received a DSUE amount from one or more predeceased  
-19-  
Instructions for Form 709 (2023)  
   
Column B  
Year  
1999  
2000  
2001  
2002  
2003  
Amount  
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$1,010,000  
$1,030,000  
$1,060,000  
$1,100,000  
$1,120,000  
$1,500,000  
$2,000,000  
$3,500,000  
$5,000,000  
$5,120,000  
$5,250,000  
$5,340,000  
$5,430,000  
$5,450,000  
$5,490,000  
$11,180,000  
$11,400,000  
$11,580,000  
$11,700,000  
$12,060,000  
$12,920,000  
Only provide descriptions for ETIP transfers; otherwise, leave  
blank.  
Column D  
2004 and 2005  
2006, 2007, and 2008  
2009  
2010 and 2011  
You are allowed to claim the gift tax annual exclusion currently  
allowable for your reported direct skips (other than certain direct  
skips to trusts—see Note below) using the rules and limits  
discussed earlier for the gift tax annual exclusion. However, you  
must allocate the exclusion on a gift-by-gift basis for GST  
computation purposes. You must allocate the exclusion to each  
gift, to the extent desired but not exceeding the maximum  
allowable amount, in chronological order, beginning with the  
earliest gift that qualifies for the exclusion. Be sure that you do  
not claim a total exclusion of more than $17,000 per donee.  
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2012  
2013  
2014  
2015  
2016  
2017  
2018  
2019  
2020  
2021  
2022  
2023  
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Note. You may not claim any annual exclusion for a transfer  
made to a trust unless the trust meets the requirements  
discussed under Part 2—Direct Skips, earlier.  
How to report GSTs after the close of an ETIP. If you are  
reporting a GST that occurred because of the close of an ETIP,  
complete Part 1 as follows.  
In general, each annual increase can only be allocated to  
transfers made (or appreciation occurring) during or after the  
year of the increase.  
Example. A donor made $1,750,000 in direct-skip GSTs  
through 2005, and allocated all $1,500,000 of the exemption to  
those transfers. In 2023, the donor makes a $2,000,000 taxable  
GST. The donor can allocate $2,000,000 of exemption to the  
2023 transfer but cannot allocate the $9,420,000 of unused 2023  
exemption to pre-2023 transfers.  
However, if in 2005, the donor made a $1,750,000 transfer to  
a trust that was not a direct skip, but from which GSTs could be  
made in the future, the donor could allocate the increased  
exemption to the trust, even though no additional transfers were  
made to the trust. See Regulations section 26.2642-4 for the  
redetermination of the applicable fraction when additional  
exemption is allocated to the trust.  
Column B. For transfers subject to an ETIP only, describe  
each transfer as provided in the instructions for Part 1 of  
Schedule A. In addition, describe the interest that is closing the  
ETIP, explain what caused the interest to terminate, list the date  
the ETIP closed, and list the year the gift portion of the transfer  
was reported and its item number on Schedule A that was  
originally filed to report the gift portion of the ETIP transfer.  
Column C.  
1. If the GST exemption is being allocated on a timely filed  
(including extensions) gift tax return, enter the value as of  
the close of the ETIP.  
2. If the GST exemption is being allocated on a late-filed (past  
the due date including extensions) gift return, enter the  
value as of the date the gift tax return was filed.  
Part 2—GST Exemption Reconciliation  
Line 1  
Keep a record of your transfers and exemption allocations to  
make sure that any future increases are allocated correctly.  
Enter on line 1 of Part 2 the maximum GST exemption you are  
allowed. This will not necessarily be the highest indexed amount  
if you made no GSTs during the year of the increase.  
The donor can apply this exemption to inter vivos transfers  
(that is, transfers made during the donor's life) on Form 709. The  
executor can apply the exemption on Form 706 to transfers  
taking effect at death. An allocation is irrevocable.  
Every donor is allowed a lifetime GST exemption. The amount of  
the exemption for 2023 is $12,920,000. For transfers made  
through 1998, the GST exemption was $1 million. The exemption  
amounts for 1999 through 2023 are as follows.  
In the case of inter vivos direct skips, a portion of the donor's  
unused exemption is automatically allocated to the transferred  
property unless the donor elects otherwise. To elect out of the  
automatic allocation of exemption, you must file Form 709 and  
attach a statement to it clearly describing the transaction and the  
extent to which the automatic allocation is not to apply. Reporting  
a direct skip on a timely filed Form 709 and paying the GST tax  
on the transfer will prevent an automatic allocation.  
Special QTIP election. If you elect QTIP treatment for any gifts  
in trust listed on Schedule A, then on Schedule D you may also  
elect to treat the entire trust as non-QTIP for purposes of the  
GST tax. The election must be made for the entire trust that  
contains the particular gift involved on this return. Be sure to  
identify the item number of the specific gift for which you are  
making this special QTIP election.  
-20-  
Instructions for Form 709 (2023)  
   
Table for Computing Gift Tax  
Column A  
Column B  
Column C  
Column D  
Rate of tax  
on excess  
over amount  
in column A  
Taxable  
amount  
over—  
Taxable  
amount  
not over—  
Tax on  
amount in  
column A  
- - - - -  
$10,000  
20,000  
40,000  
60,000  
$10,000  
20,000  
40,000  
60,000  
80,000  
- - - - -  
$1,800  
3,800  
8,200  
13,000  
18%  
20%  
22%  
24%  
26%  
80,000  
100,000  
150,000  
250,000  
500,000  
750,000  
1,000,000  
100,000  
150,000  
250,000  
500,000  
750,000  
1,000,000  
- - - - -  
18,200  
23,800  
38,800  
28%  
30%  
32%  
34%  
37%  
39%  
40%  
70,800  
155,800  
248,300  
345,800  
Line 5  
Column C  
Enter the amount of GST exemption you are applying to transfers  
reported in Part 3 of Schedule A.  
You are not required to allocate your available exemption. You  
may allocate some, all, or none of your available exemption, as  
you wish, among the gifts listed in Part 3 of Schedule D.  
However, the total exemption claimed in column C may not  
exceed the amount you entered on line 3 of Part 2 of  
Schedule D.  
Section 2632(c) provides an automatic allocation to indirect  
skips of any unused GST exemption. The unused exemption is  
allocated to indirect skips to the extent necessary to make the  
inclusion ratio zero for the property transferred. You may elect  
out of this automatic allocation as explained in the instructions  
for Part 3.  
Column D  
Carry your computation to 3 decimal places (for example,  
“1.000”).  
Line 6  
Notice of Allocation. You may wish to allocate GST exemption  
to transfers not reported on this return, such as a late allocation.  
Part 2—Tax Computation (Page 1 of  
Form 709)  
To allocate your exemption to such transfers, attach a  
statement to this Form 709 and entitle it “Notice of Allocation.”  
The notice must contain the following for each trust (or other  
transfer).  
Lines 4 and 5  
Clear identification of the trust, including the trust's EIN, if  
known.  
To compute the tax for the amount on line 3 (to be entered on  
line 4) and the tax for the amount on line 2 (to be entered on  
line 5), use the Table for Computing Gift Tax.  
If this is a late allocation, the year the transfer was reported  
on Form 709.  
The value of the trust assets at the effective date of the  
allocation.  
Line 7  
The applicable credit (formerly unified credit) amount is the  
tentative tax on the applicable exclusion amount. For gifts made  
in 2023, the applicable exclusion amount equals:  
The amount of your GST exemption allocated to each gift (or  
a statement that you are allocating exemption by means of a  
formula such as “an amount necessary to produce an  
inclusion ratio of zero”).  
The basic exclusion amount of $12,920,000, PLUS  
Any DSUE amount, PLUS  
The inclusion ratio of the trust after the allocation.  
Any Restored Exclusion Amount.  
Total the exemption allocations and enter this total on line 6.  
If you are a citizen or resident of the United States, you must  
apply any available applicable credit against gift tax. If you are  
not eligible to use a DSUE amount from a predeceased spouse,  
or Restored Exclusion Amount on taxable gifts made to a  
same-sex spouse, enter $5,113,800 on line 7. Nonresidents not  
citizens of the United States may not claim the applicable credit  
and should enter zero on line 7.  
Note. Where the property involved in such a transfer is subject  
to an ETIP, an allocation of the GST exemption at the time of the  
transfer will only become effective at the end of the ETIP. For  
(ETIP), earlier, and section 2642(f).  
Part 3—Tax Computation  
If you are eligible to use a DSUE amount from a predeceased  
spouse or a Restored Exclusion Amount for taxable gifts to a  
same-sex spouse (or both), complete Schedule C—Deceased  
Spousal Unused Exclusion (DSUE) Amount and enter the  
amount from line 5 of that schedule on line 7 of Part 2—Tax  
Computation.  
You must enter in Part 3 every gift you listed in Part 1 of  
Schedule D.  
-21-  
Instructions for Form 709 (2023)  
   
Determine the tentative tax on the applicable exclusion  
amount using the rates in the Table for Computing Gift Tax, and  
enter the result on line 7.  
sign the return as preparer unless that person is your regular  
full-time employee.  
Remember, if you and your spouse have consented to split  
gifts, your spouse must also sign and date the return in Part 1,  
line 18.  
Line 10  
Enter 20% of the amount allowed as a specific exemption for  
gifts made after September 8, 1976, and before January 1, 1977.  
(These amounts will be among those listed in Schedule B,  
column D, for gifts made in the third and fourth quarters of 1976.)  
Third-party designee. If you want to allow the return preparer  
(listed on the bottom of page 1 of Form 709) to discuss your  
2023 Form 709 with the IRS, check the “Yes” box to the far right  
of your signature on page 1 of your return.  
If you check the “Yes” box, you (and your spouse, if splitting  
gifts) are authorizing the IRS to call your return preparer to  
answer questions that may arise during the processing of your  
return. You are also authorizing the return preparer of your 2023  
Form 709 to:  
Line 13  
Gift tax conventions are in effect with Australia, Austria,  
Denmark, France, Germany, Japan, and the United Kingdom. If  
you are claiming a credit for payment of foreign gift tax, figure the  
credit and attach the calculation to Form 709, along with  
evidence that the foreign taxes were paid. See the applicable  
convention for details of computing the credit.  
Give the IRS any information that is missing from your return;  
Call the IRS for information about the processing of your  
return or the status of your payment(s);  
Receive copies of notices or transcripts related to your  
return, upon request; and  
Line 19  
Make your check or money order payable to “United States  
Treasury” and write the donor's SSN on it. You may not use an  
overpayment on Form 1040 or 1040-SR to offset the gift and  
GST taxes owed on Form 709.  
Respond to certain IRS notices about math errors, offsets,  
and return preparation.  
You are not authorizing your return preparer to receive any  
refund check, to bind you to anything (including any additional  
tax liability), or otherwise represent you before the IRS. If you  
want to expand the authorization of your return preparer, see  
Pub. 947, Practice Before the IRS and Power of Attorney.  
No checks of $100 million or more accepted. The IRS  
cannot accept a single check (including a cashier's check) for  
amounts of $100,000,000 ($100 million) or more. If you're  
sending $100 million or more by check, you'll need to spread the  
payments over two or more checks, with each check made out  
for an amount less than $100 million. The $100 million or more  
amount limit does not apply to other methods of payment (such  
as electronic payments), so please consider paying by means  
other than checks.  
The authorization will automatically end 3 years from the date  
of filing Form 709. If you wish to revoke the authorization before it  
ends, see Pub. 947.  
Signature  
As a donor, you must sign the return. If you pay another person,  
firm, or corporation to prepare your return, that person must also  
Disclosure, Privacy Act, and Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal  
Revenue laws of the United States. We need the information to figure and collect the right amount of tax. Form 709 is used to report (1)  
transfers subject to the federal gift and certain GST taxes and to figure the tax, if any, due on those transfers; and (2) allocations of the  
lifetime GST exemption to property transferred during the transferor's lifetime.  
Our legal right to ask for the information requested on this form is found in sections 6001, 6011, 6019, and 6061, and their  
regulations. You are required to provide the information requested on this form. Section 6109 requires that you provide your identifying  
number.  
Generally, tax returns and return information are confidential, as stated in section 6103. However, section 6103 allows or requires  
the Internal Revenue Service to disclose or give such information shown on your Form 709 to the Department of Justice to enforce the  
tax laws, both civil and criminal, and to cities, states, the District of Columbia, and U.S. commonwealths and territories for use in  
administering their tax laws. We may also disclose this information to other countries under a tax treaty, to federal and state agencies  
to enforce federal nontax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism.  
We may disclose the information on your Form 709 to the Department of the Treasury and contractors for tax administration  
purposes; and to other persons as necessary to obtain information that we cannot get in any other way for purposes of determining the  
amount of or to collect the tax you owe. We may disclose the information on your Form 709 to the Comptroller General to review the  
Internal Revenue Service. We may also disclose the information on your Form 709 to Committees of Congress; federal, state, and  
local child support agencies; and to other federal agencies for the purpose of determining entitlement for benefits or the eligibility for,  
and the repayment of, loans.  
If you are required to but do not file a Form 709, or do not provide the information requested on the form, or provide fraudulent  
information, you may be charged penalties and be subject to criminal prosecution.  
You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form  
displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents  
may become material in the administration of any Internal Revenue law.  
The time needed to complete and file this form will vary depending on individual circumstances. The estimated average time is:  
-22-  
Instructions for Form 709 (2023)  
 
Recordkeeping .  
Learning about the law or the form.  
Preparing the form .  
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52 min.  
1 hr., 53 min.  
2 hr., 21 min.  
1 hr., 3 min.  
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Copying, assembling, and sending the form to the IRS .  
Comments and suggestions. We welcome your comments about this publication and suggestions for future editions.  
You can send us comments through IRS.gov/FormComments. Or you can write to the Internal Revenue Service, Tax Forms and  
Publications, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224.  
Although we can't respond individually to each comment received, we do appreciate your feedback and will consider your  
comments and suggestions as we revise our tax forms, instructions, and publications. Don’t send tax questions, tax returns, or  
payments to the above address. Instead, see Where To File, earlier.  
-23-  
Instructions for Form 709 (2023)