Form 709 (2013): Gift & GST Tax Return Checklist
This checklist supports the preparation of Form 709 for reportable gifts made during calendar year 2013. It covers federal gift tax reporting, generation-skipping transfer reporting, and GST exemption reconciliation for inter vivos transfers during the transferor’s lifetime.
Form 709 is separate from estate tax reporting on IRS Form 706, even though both can affect an estate plan and long-term wealth transfers. The filing requirements and calculations depend on the 2013 rules and the 2013 form structure, not on later changes under the Tax Cuts and
Jobs Act.
What Form 709 (2013) is used for
Form 709 is used to report taxable gifts and to determine whether gift tax is due after applying the annual exclusion, deductions, and the lifetime exemption. It also reports certain generation-skipping transfer items, including direct skips, and tracks GST tax exposure and
GST exemption use.
The return creates an official record of property transferred and supports Statute of Limitations protection when disclosure is adequate. Accurate reporting also helps future estate tax administration by aligning lifetime exclusion usage with later IRS forms and calculations.
Who files and how gift splitting works
Individuals file Form 709, and spouses do not file a joint return for gift tax reporting. Gift splitting is an election that requires consent but does not convert the filing into a combined return.
When gift splitting is elected, the consenting spouse signs the designated consent line on the donor spouse’s return, and separate filings may still be required depending on the facts. This approach matters for the transferor’s lifetime reporting and avoids common errors during a tax audit.
Filing triggers and core 2013 thresholds
A filing is generally required when gifts to any one donee exceed the annual exclusion for present interest transfers during 2013. A filing is also required for future interests, taxable gifts to certain spouses, and transfers involving trust structures where exclusions do not apply.
The annual exclusion reduces the taxable amount of gifts, but it does not eliminate the obligation to file when other triggers apply. Notable exclusions still apply to direct payments
made for qualified medical expenses and tuition. medical expenses to a medical institution and to qualified tuition payments, and those transfers are generally not treated as gifts.
Records to gather before completing IRS Form 709
Preparation begins by collecting documents that establish the gift's date, the donee's identity, and the nature of the property transfer. Each gift should have support for fair market value on the transfer date, along with basis information and any valuation explanation needed.
Trust agreements, trust structures, and documentation for dynasty trusts should be gathered early when a transfer involves a trust. Security identifiers, such as a CUSIP for securities, should be included when required, and valuation support should be retained for statute of limitations purposes.
Ten-step checklist for Form 709 (2013)
Step 1: Confirm whether a filing requirement exists
Review all 2013 transfers and identify any taxable gifts or other filing triggers that require Form
709. Confirm donor status as a United States citizen or resident for the standard filing framework.
Step 2: Determine whether gift splitting will be elected
Confirm eligibility for gift splitting and identify which transfers are eligible for splitting between spouses. Ensure the consenting spouse is available to sign and date the consent line.
Step 3: Compile gifts and excluded transfers separately
List each reportable gift with the donee, date, and property description, then separately track excluded transfers that are not reported as gifts. Medical expenses paid directly to a provider and transfers to a political organization should be retained in records, even if they are not listed on Schedule A.
Step 4: Document Fair Market Value and valuation methods
Determine the fair market value for each gift as of the date of transfer, and retain proof supporting the reported amount. Appraisals and valuation explanations are essential when discounts or nonmarketable assets are involved.
Step 5: Complete Form 709, page 1, donor information
Enter donor identifying information and answer the administrative questions that apply to the
2013 form. If an automatic extension applies through an income tax extension, confirm the extension method and record it accurately.
Step 6: Report gifts on Schedule A only
List reportable gifts on Schedule A rather than the tax computation area, and use the correct part for each category. Direct skips and trust transfers should be placed in the appropriate sections to support GST tax reporting.
Step 7: Apply annual exclusions and compute taxable gifts
Claim the yearly exclusion in the reconciliation area and ensure gifts of future interests are not treated as eligible for the exclusion. Confirm the resulting taxable gifts align with the donor’s intent and supporting documentation.
Step 8: Handle GST reporting and GST exemption reconciliation
Use the 2013 GST schedule structure to report generation-skipping transfer items and compute any GST tax when applicable. Document GST exemption allocations and automatic allocation treatment when required by the form.
Step 9: Use Schedule B only when prior Forms 709 exist
Complete Schedule B only when gifts were reported in prior years, and must be carried forward to compute cumulative tax and credits. Confirm prior data is consistent with records and supports lifetime exclusion tracking.
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Step 10: Complete tax computation, sign, and file correctly
Complete the tax computation section using totals from the schedules and apply the applicable tax rate to determine tax due after credits. Sign and date as the donor, obtain the spouse’s consent signature when gift splitting is elected, and file by the required deadline or extension.
Extension timing and filing logistics for 2013
Form 709 for 2013 is generally due on April 15, 2014, subject to weekend or legal holiday adjustments. An income tax extension filed on Form 4868 can extend the time to file Form 709 when the conditions in the instructions are met.
When the return is filed under an extension, the tax payment should still be evaluated if taxable gifts create a balance due. Filing records should be preserved in case a tax audit later reviews valuation or disclosure.
Notes on form structure and common confusion points
Schedule A lists gifts, while page 1 includes donor information and tax computation. Schedule B handles gifts from prior periods, and GST reporting is dealt with through the form’s GST schedules and allocation lines, rather than being treated as part of Schedule B.
Form references seen in practice, such as Form 8892, should be matched to the 2013 instructions rather than assumed to apply to every filing. Tax preparation tools, including a
TaxAct program, may support data entry, but each line must still align with IRS forms and the donor’s records.
Security and record-retention reminder
Form preparation often involves storing identifying information and financial documents, so secure storage and access controls matter. Basic security service practices, including protection against online attacks and review for malformed data, help reduce risk when files are exchanged electronically.
If a site owner uses a security solution like Cloudflare, system messages, such as a Cloudflare
Ray ID, may appear at the bottom of this page during downloads. Still, these items do not affect tax reporting. Records should still be retained for statute of limitations purposes, including disclosures consistent with Regulations Sec. 301.6501(c)-1(e).
Notes and closing
Accurate Form 709 reporting supports estate planning goals by documenting the use of the lifetime exemption, GST exemption allocations, and transfers into trust structures, such as a life insurance trust. Transfers involving dynasty trusts, a Crummey withdrawal right, or planning constraints like the rule against perpetuities often require careful reporting to avoid downstream disputes.
When valuations are complex or a family dispute affects reporting decisions, a tax professional's review, including consultation with an estate planning attorney, may be appropriate. Reference materials, such as the Center for Agricultural Law and Taxation, can support technical review, and recent developments under the Inflation Reduction Act should be monitored for a broader compliance context, even though core 2013 reporting follows the 2013 form rules.
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
