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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 
otherwise noted.                                                            What's New
                                                                            • The annual gift exclusion for 2023 is $17,000. See Annual 
Contents                                                               Page   Exclusion, later.
General Instructions   . . . . . . . . . . . . . . . . . . . . . . . . . 1  • For gifts made to spouses who are not U.S. citizens, the 
Purpose of Form . . . . . . . . . . . . . . . . . . . . . . . . .        1    annual exclusion has increased to $175,000. See 
Who Must File        . . . . . . . . . . . . . . . . . . . . . . . . . . 2    Nonresidents Not Citizens of the United States, later.
                                                                            • The top rate for gifts and generation-
When To File       . . . . . . . . . . . . . . . . . . . . . . . . . . . 5    skipping transfers remains at 40%. See Table for Computing 
Where To File . . . . . . . . . . . . . . . . . . . . . . . . . . .      5    Gift Tax.
Amending Form 709 . . . . . . . . . . . . . . . . . . . . . .            5  • The basic credit amount for 2023 is $5,113,800. See Table 
                                                                              of Basic Exclusion and Credit Amounts.
Adequate Disclosure          . . . . . . . . . . . . . . . . . . . . . . 5    The applicable exclusion amount consists of the basic 
                                                                            •
Penalties    . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6    exclusion amount ($12,920,000 in 2023) and, in the case of 
Joint Tenancy . . . . . . . . . . . . . . . . . . . . . . . . . . .      6    a surviving spouse, any unused exclusion amount of the last 
Transfer of Certain Life Estates Received                                     deceased spouse (who died after December 31, 2010). The 
From Spouse . . . . . . . . . . . . . . . . . . . . . . . . .            6    executor of the predeceased spouse's estate must have 
                                                                              elected on a timely and complete Form 706 to allow the 
Specific Instructions  . . . . . . . . . . . . . . . . . . . . . . . . . 6    donor to use the predeceased spouse's unused exclusion 
Part 1—General Information               . . . . . . . . . . . . . . . . 6    amount.
Schedule A. Computation of Taxable Gifts                     . . . . . . 8  • Digital assets. A new question regarding digital assets 
                                                                              appears on Line 20. See Digital assets and Line 20. Digital 
Gifts Subject to Both Gift and GST Taxes                   . . . . . . . 9    Assets, later, for information on transfers involving digital 
Schedule B. Gifts From Prior Periods                 . . . . . . . . .   14   assets. Do not leave this question unanswered. The 
Schedule C. Portability of Deceased Spousal                                   question must be answered by all taxpayers, not just 
Unused Exclusion (DSUE) Amount and                                            taxpayers who made transfers involving digital assets.
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 & 
Part 2—Tax Computation (Page 1 of Form                                      Exploited Children® (NCMEC). Photographs of missing children 
709)         . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 selected by the Center may appear in instructions on pages that 
Signature . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      22 would otherwise be blank. You can help bring these children 
                                                                            home by looking at the photographs and calling 
                                                                            1-800-THE-LOST (1-800-843-5678) if you recognize a child.
Future Developments

For the latest information about developments related to Form               General Instructions
709 and its instructions, such as legislation enacted after they 
were published, go to IRS.gov/Form709.                                      Purpose of Form
                                                                            Use Form 709 to report the following.
             For Gifts Made                            Use Revision of        Transfers subject to the federal gift and certain 
After                         and Before             Form 709 Dated         •
                                                                              generation-skipping transfer (GST) taxes and to figure the 
– – – – –                  January 1, 1982         November 1981              tax due, if any, on those transfers.
December 31, 1981          January 1, 1987         January 1987             • Allocation of the lifetime GST exemption to property 
                                                                              transferred during the transferor's lifetime. (For more details, 
December 31, 1986          January 1, 1989         December 1988              see Schedule D, Part 2—GST Exemption Reconciliation, 
December 31, 1988          January 1, 1990         December 1989              later, and Regulations section 26.2632-1.)
December 31, 1989          October 9, 1990         October 1990                       All gift and GST taxes must be figured and filed on a 
                                                                                      calendar year basis. List all reportable gifts made during 
October 8, 1990            January 1, 1992         November 1991            CAUTION!  the calendar year on one Form 709. This means you 
December 31, 1992          January 1, 1998         December 1996            must file a separate return for each calendar year a reportable 
December 31, 1997              – – – – –           *                        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 
                 * Use the corresponding annual form.                       1 calendar year.

                                                                            How To Complete Form 709
                                                                            1. Determine whether you are required to file Form 709.

Aug 18, 2023                                                           Cat. No. 16784X

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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
4. Complete lines 1 through 19 of Part 1—General Information. information on identifying a qualified charity.
5. List each gift on Part 1, 2, or 3 of Schedule A, as If you are required to file a return to report noncharitable gifts
appropriate. and you made gifts to charities, you must include all of your gifts
to charities on the return.
6. Complete Schedules B, C, and D, as applicable.
7. If the gift was listed on Part 2 or 3 of Schedule A, complete Transfers Subject to the Gift Tax
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
8. Complete Schedule A, Part 4. made directly or indirectly, in trust, or by any other means.
9. Complete Part 2—Tax Computation.
The gift tax applies not only to the free transfer of any kind of
10. Sign and date the return. property, but also to sales or exchanges, not made in the
ordinary course of business, where value of the money (or
Make sure to complete page 1 and the applicable property) received is less than the value of what is sold or
! schedules in their entirety. Returns filed without entries in exchanged. The gift tax is in addition to any other tax, such as
CAUTION each field will not be processed.
federal income tax, paid or due on the transfer.
Remember, if you are splitting gifts, your spouse must The exercise or release of a general power of appointment
TIP sign line 18 in Part 1—General Information. 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,
Who Must File their creditors, their estates, or the creditors of their estates. To
In general. If you are a citizen or resident of the United States, qualify as a power of appointment, it must be created by
you must file a gift tax return (whether or not any tax is ultimately someone other than the holder of the power.
due) in the following situations.
• If you gave gifts to someone in 2023 totaling more than The gift tax may also apply to forgiving a debt, to making an
$17,000 (other than to your spouse), you probably must file interest-free or below-market interest rate loan, to transferring
Form 709. But see Transfers Not Subject to the Gift Tax and the benefits of an insurance policy, to certain property
Gifts to Your Spouse, later, for more information on specific settlements in divorce cases, and to giving up some amount of
gifts that are not taxable. 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 Bonds that are exempt from federal income taxes are not
the gift was under $17,000. See Annual Exclusion, later. exempt from federal gift taxes.
• Spouses may not file a joint gift tax return. Each individual is Sections 2701 and 2702 provide rules for determining
responsible to file a Form 709. whether certain transfers to a family member of interests in
• You must file a gift tax return to split gifts with your spouse corporations, partnerships, and trusts are gifts. The rules of
(regardless of their amount) as described in Part 1—General section 2704 determine whether the lapse of any voting or
Information, later. liquidation right is a gift.
• If a gift is of community property, it is considered made
one-half by each spouse. For example, a gift of $100,000 of Digital assets. The gift tax applies to transfers of digital assets.
community property is considered a gift of $50,000 made by Digital assets are any digital representations of value that are
each spouse, and each spouse must file a gift tax return. recorded on a cryptographically secured distributed ledger or
• Likewise, each spouse must file a gift tax return if they have any similar technology. For example, digital assets include
made a gift of property held by them as joint tenants or non-fungible tokens (NFTs) and virtual currencies, such as
tenants by the entirety. cryptocurrencies and stablecoins. If a particular asset has the
• Only individuals are required to file gift tax returns. If a trust, characteristics of a digital asset, it will be treated as a digital
estate, partnership, or corporation makes a gift, the asset for federal transfer tax purposes.
individual beneficiaries, partners, or stockholders are Gifts to your spouse. You must file a gift tax return if you made
considered donors and may be liable for the gift and GST any gift to your spouse of a terminable interest that does not
taxes. meet the exception described in Life estate with power of
• The donor is responsible for paying the gift tax. However, if appointment, later, or if your spouse is not a U.S. citizen and the
the donor does not pay the tax, the person receiving the gift total gifts you made to your spouse during the year exceed
may have to pay the tax. $175,000.
• If a donor dies before filing a return, the donor's executor
must file the return. You must also file a gift tax return to make the qualified
terminable interest property (QTIP) election described under
Who does not need to file. If you meet all of the following Line 12. Election Out of QTIP Treatment of Annuities, later.
requirements, you are not required to file Form 709. Except as described earlier, you do not have to file a gift tax
• You made no gifts during the year to your spouse. return to report gifts to your spouse regardless of the amount of
• You did not give more than $17,000 to any one donee. these gifts and regardless of whether the gifts are present or
• All the gifts you made were of present interests. future 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 Transfers Not Subject to the Gift Tax
long as you transferred your entire interest in the property to Four types of transfers are not subject to the gift tax. These are:
qualifying charities. If you transferred only a partial interest, or • Transfers to political organizations,
• Transfers to certain exempt organizations,

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• Payments that qualify for the educational exclusion, and any interest in property, the property will be treated as if it had
• Payments that qualify for the medical exclusion. never been transferred to that person. Accordingly, the
These transfers are not “gifts” as that term is used on Form 709 disclaimant is not regarded as making a gift to the person who
and its instructions. You need not file a Form 709 to report these receives the property because of the qualified disclaimer.
transfers and should not list them on Schedule A of Form 709 if Requirements. To be a qualified disclaimer, a refusal to
you do file Form 709. 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)) 1. The refusal must be in writing.
for the use of the organization. 2. The refusal must be received by the donor, the legal
Certain exempt organizations. The gift tax does not apply to a representative of the donor, the holder of the legal title to the
transfer to any civic league or other organization described in property disclaimed, or the person in possession of the
section 501(c)(4); any labor, agricultural, or horticultural property within 9 months after the later of:
organization described in section 501(c)(5); or any business a. The day the transfer creating the interest is made, or
league or other organization described in section 501(c)(6) for
the use of such organization, provided that such organization is b. The day the disclaimant reaches age 21.
exempt from tax under section 501(a). 3. The disclaimant must not have accepted the interest or any
Educational exclusion. The gift tax does not apply to an of its benefits.
amount you paid on behalf of an individual to a qualifying 4. As a result of the refusal, the interest must pass without any
domestic or foreign educational organization as tuition for the direction from the disclaimant to either:
education or training of the individual. A qualifying educational
organization is one that normally maintains a regular faculty and a. The spouse of the decedent, or
curriculum and normally has a regularly enrolled body of pupils b. A person other than the disclaimant.
or students in attendance at the place where its educational
activities are regularly carried on. See section 170(b)(1)(A)(ii) 5. The refusal must be irrevocable and unqualified.
and its regulations.
The 9-month period for making the disclaimer is generally
The payment must be made directly to the qualifying determined separately for each taxable transfer. For gifts, the
educational organization and it must be for tuition. No period begins on the date the transfer is a completed transfer for
educational exclusion is allowed for amounts paid for books, gift tax purposes.
supplies, room and board, or other similar expenses that are not
direct tuition costs. To the extent that the payment to the Annual Exclusion
educational organization was for something other than tuition, it
is a gift to the individual for whose benefit it was made, and may The first $17,000 of gifts of present interest to each donee during
be offset by the annual exclusion if it is otherwise available. the calendar year is subtracted from total gifts in figuring the
amount of taxable gifts. For a gift in trust, each beneficiary of the
Contributions to a qualified tuition program (QTP) on behalf of trust is treated as a separate donee for purposes of the annual
a designated beneficiary do not qualify for the educational exclusion.
exclusion. See Line B. Qualified Tuition Programs (529 Plans or
Programs) in the instructions for Schedule A, later. All of the gifts made during the calendar year to a donee are
Medical exclusion. The gift tax does not apply to an amount fully excluded under the annual exclusion if they are all gifts of
you paid on behalf of an individual to a person or institution that present interest and they total $17,000 or less.
provided medical care for the individual. The payment must be to Note. For gifts made to spouses who are not U.S. citizens, the
the care provider. The medical care must meet the requirements annual exclusion has been increased to $175,000, provided the
of section 213(d) (definition of medical care for income tax additional (above the $17,000 annual exclusion) $158,000 gift
deduction purposes). Medical care includes expenses incurred would otherwise qualify for the gift tax marital deduction (as
for the diagnosis, cure, mitigation, treatment, or prevention of described in the Schedule A, Part 4, line 4, instructions, later).
disease, or for the purpose of affecting any structure or function
of the body, or for transportation primarily for and essential to Note. Only the annual exclusion applies to gifts made to a
medical care. Medical care also includes amounts paid for nonresident not a citizen of the United States. Deductions and
medical insurance on behalf of any individual. credits are not considered in determining gift tax liability for such
The medical exclusion does not apply to amounts paid for transfers.
medical care that are reimbursed by the donee's insurance. If
payment for a medical expense is reimbursed by the donee's A gift of a future interest cannot be excluded under the annual
insurance company, your payment for that expense, to the extent exclusion.
of the reimbursed amount, is not eligible for the medical
exclusion and you are considered to have made a gift to the A gift is considered a present interest if the donee has all
donee of the reimbursed amount. immediate rights to the use, possession, and enjoyment of the
property or income from the property.
To the extent that the payment was for something other than
medical care, it is a gift to the individual on whose behalf the A gift is considered a future interest if the donee's rights to the
payment was made and may be offset by the annual exclusion if use, possession, and enjoyment of the property or income from
it is otherwise available. the property will not begin until some future date. Future interests
The medical and educational exclusions are allowed without include reversions, remainders, and other similar interests or
regard to the relationship between you and the donee. For estates.
examples illustrating these exclusions, see Regulations section
A contribution to a QTP on behalf of a designated beneficiary
25.2503-6(c).
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.
Instructions for Form 709 (2023) -3-

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1. Both the property and its income may be expended by, or Transfers Subject to an Estate Tax Inclusion
for the benefit of, the minor before the minor reaches age
Period (ETIP)
21.
Certain transfers receive special treatment if the transferred
2. All remaining property and its income must pass to the property is subject to an ETIP. An ETIP is the period during
minor on the minor's 21st birthday. which, should the donor die, the value of transferred property
3. If the minor dies before the age of 21, the property and its would be includible (other than by reason of section 2035) in the
income will be payable either to the minor's estate or to gross estate of the donor or the spouse of the donor. For
whomever the minor may appoint under a general power of transfers subject to an ETIP, GST tax reporting is required at the
appointment. close of the ETIP.
The gift of a present interest to more than one donee as joint For example, if A transfers a house to a qualified personal
tenants qualifies for the annual exclusion for each donee. 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
Nonresidents Not Citizens of the United States 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
Nonresidents not citizens of the United States are subject to gift trust is a completed gift that must be reported on Part 1 of
and GST taxes for gifts of tangible property situated in the United Schedule A. The GST portion of the transfer would not be
States. A person is considered a nonresident not a citizen of the reported until A died or A’s interest in the trust otherwise ended.
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 Report the gift portion of such a transfer on Schedule A, Part
domiciled in a U.S. territory and acquired citizenship solely by 1, at the time of the actual transfer. Report the GST portion on
reason of birth or residence in the territory. Under certain Schedule D, Part 1, but only at the close of the ETIP. Use Form
circumstances, they are also subject to gift and GST taxes for 709 only to report those transfers where the ETIP closed due to
gifts of intangible property. See section 2501(a). 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,
If you are a nonresident not a citizen of the United States who United States Estate (and Generation-Skipping Transfer) Tax
made a gift subject to gift tax, you must file a gift tax return when Return.)
any of the following apply.
• You gave any gifts of future interests. If you are filing this Form 709 solely to report the GST portion
• Your gifts of present interests to any donee other than your of transfers subject to an ETIP, complete the form as you
spouse total more than $17,000. normally would with the following exceptions.
• Your outright gifts to your spouse who is not a U.S. citizen 1. Write “ETIP” at the top of page 1.
total more than $175,000.
2. Complete only lines 1 through 6, 8, and 9 of Part
Transfers Subject to the GST Tax 1—General Information.
You must report on Form 709 the GST tax imposed on inter vivos 3. Complete Schedule D. Complete columns B and C of
direct skips. An inter vivos direct skip is a transfer made during Schedule D, Part 1, as explained in the instructions for that
the donor's lifetime that is: schedule.
• Subject to the gift tax, 4. Complete only lines 10 and 11 of Schedule A, Part 4.
• Of an interest in property, and
• Made to a skip person. (See Gifts Subject to Both Gift and 5. Complete Part 2—Tax Computation.
GST Taxes, later.)
A direct skip that is subject to an ETIP is deemed to have
A transfer is subject to the gift tax if it is required to be TIP been made only at the close of the ETIP. Any allocation
reported on Schedule A of Form 709 under the rules contained of GST exemption to the transfer of property subject to
in the gift tax portions of these instructions, including the split gift an ETIP, whether a direct skip or an indirect skip, shall not be
rules. Therefore, transfers made to political organizations, made until the close of the ETIP. The donor may prevent the
transfers made to certain exempt organizations, transfers that automatic allocation of GST exemption by electing out of the
qualify for the medical or educational exclusions, transfers that automatic allocation rules at any time prior to the due date of the
are fully excluded under the annual exclusion, and most transfers Form 709 for the calendar year in which the close of the ETIP
made to your spouse are not subject to the GST tax. 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
Transfers subject to the GST tax are described in further 709 would otherwise be required to be filed for that year).
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
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 elections that you can make only with Form 709.
$17,000 annual exclusion. In this instance, you may want to 1. A transferor may elect to treat a qualified payment right that
apply a GST exemption amount to the transfer on this return or the transferor holds (and all other rights of the same class)
on a Notice of Allocation. However, you should be aware that a as other than a qualified payment right.
GST exemption may be automatically allocated to the gift if the
trust that receives the gift is a “GST trust” (as defined under 2. A person may elect to treat a distribution right held by that
section 2632(c)). For more information, see Schedule D, Part person in a controlled entity as a qualified payment right.
2—GST Exemption Reconciliationand Schedule A, Part 3. An interest holder may elect to treat as a taxable event the
3—Indirect Skips and Other Transfers in Trust, later. 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

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attaching a statement to Form 709. For information on what must PDSs can't deliver items to P.O. boxes. You must use the
be in the statement and for definitions and other details on the ! U.S. Postal Service to mail any item to an IRS P.O. box
elections, see section 2701 and Regulations section CAUTION address.
25.2701-2(c).
The election described in (3) may be made by attaching a Where To File
statement to the Form 709 filed by the recipient of the qualified File Form 709 at the following address.
payment for the year the payment is received. If the election is
made on a timely filed return, the taxable event is deemed to Department of the Treasury
occur on the date the qualified payment is received. If it is made Internal Revenue Service Center
on a late-filed return, the taxable event is deemed to occur on the Kansas City, MO 64999
first day of the month immediately preceding the month in which
the return is filed. For information on what must be in the If using a PDS, file at this address.
statement and for definitions and other details on this election,
see section 2701 and Regulations section 25.2701-4(d). Internal Revenue Service
333 W. Pershing Road
All of the elections may be revoked, but only with the consent Kansas City, MO 64108
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
Generally, you must file Form 709 no earlier than January 1, already been filed, you should:
but not later than April 15, of the year after the gift was made. • File another Form 709;
However, in instances when April 15 falls on a Saturday, Sunday, • Enter “Supplemental Information” across the top of page 1 of
or legal holiday, Form 709 will be due on the next business day. the form;
See section 7503. • Include a statement of what has changed, along with the
supporting information; and
If the donor died during 2023, the executor must file the • Attach a copy of the original Form 709 that has already been
donor's 2023 Form 709 not later than the earlier of: 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
• April 15, 2024, or the extended due date granted for filing Filing Estate and Gift Tax Returns. File the amended Form 709 at
the donor's gift tax return. the following address.
Internal Revenue Service Center
Extension of Time To File Attn: E&G, Stop 824G
There are two methods of extending the time to file the gift tax 7940 Kentucky Drive
return. Neither method extends the time to pay the gift or GST Florence, KY 41042-2915
taxes. If you want an extension of time to pay the gift or GST
taxes, you must request that separately. See Regulations section If using a PDS, file at this address.
25.6161-1.
By extending the time to file your income tax return. Any Internal Revenue Service Center
extension of time granted for filing your calendar year 2023 Attn: E&G, Stop 824G
federal income tax return will also automatically extend the time 7940 Kentucky Drive
to file your 2023 federal gift tax return. Income tax extensions are Florence, KY 41042-2915
made by using Form 4868, Application for Automatic Extension
of Time To File U.S. Individual Income Tax Return, or Form 2350, If you have already been notified that the return has been
Application for Extension of Time To File U.S. Income Tax selected for examination, you should provide the additional
Return. You may only use these forms to extend the time for filing information directly to the office conducting the examination.
your gift tax return if you are also requesting an extension of time See the Caution under Lines 12–18. Split Gifts, later,
to file your income tax return. TIP before you mail the return.
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/ Adequate Disclosure
Generation-Skipping Transfer Tax, to request an automatic
6-month extension of time to file your federal gift tax return. In To begin the running of the statute of limitations for a gift,
addition to containing an extension request, Form 8892 also ! the gift must be adequately disclosed on Form 709 (or
serves as a payment voucher (Form 8892-V) for a balance due CAUTION an attached statement) filed for the year of the gift.
on federal gift taxes for which you are extending the time to file. In general, a gift will be considered adequately disclosed if
For more information, see Form 8892. 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
Filers can use certain PDSs designated by the IRS to meet the consideration received by the donor.
“timely mailing as timely filing” rule for tax returns. Go to • The identity of, and relationship between, the donor and
IRS.gov/PDS for the current list of designated services. each donee.
• If the property is transferred in trust, the trust's employer
The PDS can tell you how to get written proof of the mailing identification number (EIN) and a brief description of the
date. terms of the trust (or a copy of the trust instrument in lieu of
For the IRS mailing address to use if you're using a PDS, go the description).
to IRS.gov/PDSstreetAddresses.
Instructions for Form 709 (2023) -5-

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• Either a qualified appraisal or a detailed description of the         you will be subject to the gift tax (and GST tax, if applicable) if 
  method used to determine the fair market value of the gift.           you dispose of all or part of your life income interest (by gift, sale, 
See Regulations section 301.6501(c)-1(e) and (f) for details,           or otherwise).
including what constitutes a qualified appraisal, the information        Generally, the entire value of the property transferred will be 
required if no appraisal is provided, and the information required      treated as a taxable gift less:
for transfers under sections 2701 and 2702.
                                                                        1. The amount you received (if any) for the life income interest; 
Penalties                                                                 and
Late filing and late payment.    Section 6651 imposes penalties         2. The amount (if any) determined after the application of 
for both late filing and late payment, unless there is reasonable         section 2702, valuing certain retained interests at zero, for 
cause for the delay.                                                      the life income interest you retained after the transfer.
Reasonable-cause determinations.    If you receive a notice              That portion of the property's value that is attributable to the 
about penalties after you file Form 709, send an explanation and        remainder interest is a gift of a future interest for which no annual 
we will determine if you meet reasonable-cause criteria. Do not         exclusion is allowed. To the extent that you transferred the life 
attach an explanation when you file Form 709.                           income interest without receiving any value in return, the transfer 
There are also penalties for willful failure to file a return on        is a gift, and you may claim an annual exclusion, treating the 
time, willful attempt to evade or defeat payment of tax, and            person to whom you transferred the interest as the donee for 
valuation understatements that cause an underpayment of the             purposes of figuring the annual exclusion.
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
understatement occurs when the reported value listed on the 
Form 709 is 40% or less of the actual value of the property.            Part 1—General Information
Return preparer. Penalties may also be applied to tax return 
preparers, including gift tax return preparers.                         Line 3. Donor’s Social Security Number
Gift tax return preparers who prepare any return or claim for           Enter your social security number (SSN), if applicable, or your 
refund that reflects an understatement of tax liability due to an       individual taxpayer identification number (ITIN), but only if you 
unreasonable position are subject to a penalty equal to the             have previously used the ITIN to file other U.S. tax returns. If you 
greater of $1,000 or 50% of the income earned (or to be earned)         do not have an SSN or a previously used ITIN, the IRS will 
for the preparation of each such return.                                assign an Internal Revenue Service Number (IRSN) to you. If 
                                                                        you have already been assigned an IRSN, please enter the 
Gift tax return preparers who prepare any return or claim for           number on line 3. If you do not have a SSN, ITIN, or IRSN, leave 
refund with an understatement of tax liability due to willful or        line 3 blank.
reckless conduct can be penalized $5,000 or 75% of the income 
derived (or to be derived) for the preparation of the return.           Lines 4 and 6. Address
Gift tax return preparers who prepare any return or claim for a         Enter your current mailing address.
refund are required to furnish a copy to the taxpayer, sign the         Foreign address. If your address is outside of the United 
return, and provide their PTIN, but who fail to do so, are subject      States or its territories, enter the information as follows: city, 
to a penalty of $50 for such failure, unless it is shown that such      province or state, and name of country. Follow the country's 
failure is due to reasonable cause and not due to willful neglect.      practice for entering the postal code. Do not abbreviate the 
See section 6694, the related regulations, and Ann. 2009-15,            country name.
2009-11 I.R.B. 687, available at IRS.gov/pub/irs-irbs/
irb09-11.pdf, for more information.                                     Line 5. Legal Residence (Domicile)
                                                                        In general, your legal residence (also known as your domicile) is 
Joint Tenancy                                                           acquired by living in a place, for even a brief period of time, with 
If you buy property with your own funds and the title to the            no definite present intention of moving from that place.
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            Enter the state of the United States (including the District of 
rights by severing your interest, you have made a gift to the           Columbia) or a foreign country in which you legally reside or are 
donee in the amount of half the value of the property.                  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        Line 7. Citizenship
fund without the donee's consent), you have made a gift to the          Enter your citizenship.
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         The term “citizen of the United States” includes a person who, 
took out without any obligation to repay you.                           at the time of making the gift:
                                                                        • Was domiciled in a territory of the United States,
If you buy a U.S. savings bond registered as payable to                 • Was a U.S. citizen, and
yourself or a donee, there is a gift to the donee when the donee        • Became a U.S. citizen for a reason other than being a citizen 
cashes the bond without any obligation to account to you.                 of a U.S. territory or being born or residing in a territory.
Transfer of Certain Life Estates                                         A nonresident not a citizen of the United States includes a 
                                                                        person who, at the time of making the gift:
Received From Spouse                                                      Was domiciled in a territory of the United States,
                                                                        •
If you received a qualified terminable interest (see Line 12.           • Was a U.S. citizen, and
Election Out of QTIP Treatment of Annuities in the instructions for     • Became a U.S. citizen only because that person was a 
Schedule A, later) from your spouse for which a marital                   citizen of a territory or was born or resided in a territory.
deduction was elected on your spouse's estate or gift tax return, 

                                                                    -6-                                Instructions for Form 709 (2023)

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Lines 12–18. Split Gifts When the Consenting Spouse Must Also File a Gift
A married couple may not file a joint gift tax return. Tax Return
! However, if after reading the instructions below, you and In general, if you and your spouse elect gift splitting, then both
CAUTION your spouse agree to split your gifts, you should file both
of your individual gift tax returns together (that is, in the same spouses must file their own individual gift tax return.
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
If you and your spouse both consent, all gifts (including gifts exceptions, gifts means transfers (or parts of transfers) that do
of property held with your spouse as joint tenants or tenants by not qualify for the political organization, educational, or medical
the entirety) either of you make to third parties during the exclusions.
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:
• You and your spouse were married to one another at the • Only one spouse made any gifts,
time of the gift. • The total value of these gifts to each third-party donee does
• If divorced or widowed after the gift, you did not remarry not exceed $34,000, and
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 Exception 2. During the calendar year:
States at the time of the gift. • Only one spouse (the donor spouse) made gifts of more
• You did not give your spouse a general power of than $17,000 but not more than $34,000 to any third-party
appointment over the property interest transferred. donee,
If you transferred property partly to your spouse and partly to • The only gifts made by the other spouse (the consenting
third parties, you can only split the gifts if the interest transferred spouse) were gifts of not more than $17,000 to third-party
to the third parties is ascertainable at the time of the gift. donees other than those to whom the donor spouse made
gifts, and
The consent is effective for the entire calendar year; • All of the gifts by both spouses were of present interests.
therefore, all gifts made by both you and your spouse to third
If either of the above exceptions is met, only the donor
parties during the calendar year (while you were married) must
spouse must file a return and the consenting spouse signifies
be split.
consent on that return.
If the consent is effective, the liability for the entire gift tax of Specific instructions for Part 2—Tax Computation are
each spouse is joint and several. discussed later. Because you must complete Schedules A, B, C,
If you meet these requirements and want your gifts to be and D to fill out Part 2, you will find instructions for these
considered made one-half by you and one-half by your spouse, schedules later.
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
If you are not married or do not wish to split gifts, skip to spouse died after December 31, 2010, the donor may be eligible
line 19. to use the deceased spouse's unused exclusion (DSUE)
Line 15. If you were married to one another for all of 2023, amount. The executor of the spouse's estate must have elected
check the “Yes” box and skip to line 17. If you were married for on Form 706 to allow use of the unused exclusion amount. See
only part of the year, check the “No” box and go to line 16. If you the instructions for Form 706, Part 6—Portability of Deceased
were divorced or widowed after you made the gift, you cannot Spousal Unused Exclusion. If the executor of the estate made
elect to split gifts if you remarried before the end of 2023. this election, attach the first four pages of Form 706 filed by the
estate. Include any attachments related to DSUE that were filed
Line 16. Check the box that explains the change in your marital with Form 706 and calculations of any adjustments to the DSUE
status during the year and give the date you were married, amount like audit reports or previously filed Forms 709. Please
divorced, or widowed. see Rev. Proc. 2022-32, which provides an update to the
simplified method for making a late DSUE election for certain
Consent of Spouse qualifying taxpayers (superseding Rev. Proc. 2017-34). See also
Your spouse must sign the consent for your gift-splitting election section 2010(c)(4) and related regulations.
to be valid. The consent may generally be signed at any time
after the end of the calendar year. However, there are two Using the checkboxes provided, indicate whether the donor is
exceptions. applying or has applied a DSUE amount from a predeceased
spouse to gifts reported on this or a previous Form 709. If so,
1. The consent may not be signed after April 15 following the complete Schedule C before going to Part 2—Tax Computation,
end of the year in which the gift was made. But if neither you later.
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 Line 20. Digital Assets
tax return for the year filed by either of you. If you reported on this Form 709 any transfer that includes a
2. The consent may not be signed after a notice of deficiency digital asset (or a financial interest in a digital asset), answer
for the gift tax for the year has been sent to either you or “Yes” to the question on Line 20. Do not leave the question
your spouse. unanswered. You must answer “Yes” or “No” by checking the
appropriate box.
The executor for a deceased spouse or the guardian for a
legally incompetent spouse may sign the consent.

Instructions for Form 709 (2023) -7-

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in which the contribution is made. Also attach an explanation that
Schedule A. Computation of Taxable includes the following.
• The total amount contributed per individual beneficiary.
Gifts • The amount for which the election is being made.
Do not enter on Schedule A any gift or part of a gift that qualifies • The name of the individual for whom the contribution was
for the political organization, educational, or medical exclusions. made.
In the instructions below, gifts means transfers (or parts of
transfers) that do not qualify for the political organization, If you are electing gift splitting, apply the gift-splitting rules
educational, or medical exclusions. 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 ! exclusion.
of Schedule A includes a discount for lack of marketability, a CAUTION
minority interest, a fractional interest in real estate, blockage,
market absorption, or for any other reason, answer “Yes” to the How To Complete Parts 1, 2, and 3
question at the top of Schedule A. Also attach an explanation After you determine which gifts you made in 2023 that are
giving the basis for the claimed discounts and showing the subject to the gift tax, list them on Schedule A. You must divide
amount of the discounts taken. these gifts between:
Line B. Qualified Tuition Programs (529 Plans or 1. Part 1—those subject only to the gift tax (gifts made to
Programs) nonskip persons—see Part 1—Gifts Subject Only to Gift
Tax, later),
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 2. Part 2—those subject to both the gift and GST taxes (gifts
treat up to $85,000 of the contribution for that person as if you made to skip persons—see Gifts Subject to Both Gift and
had made it ratably over a 5-year period. The election allows you GST Taxes and Part 2—Direct Skips, later), and
to apply the annual exclusion to a portion of the contribution in 3. Part 3—those subject only to the gift tax at this time but
each of the 5 years, beginning in 2023. You can make this which could later be subject to GST tax (gifts that are
election for as many separate people as you made QTP indirect skips—see Part 3—Indirect Skips and Other
contributions. Transfers in Trust, later).
You can only apply the election to a maximum of $85,000. If you need more space, attach a separate sheet using the
You must report all of your 2023 QTP contributions for any single same format as Schedule A.
person that exceed $85,000 (in addition to any other gifts you
made to that person). Use the following guidelines when entering gifts on
TIP Schedule A.
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 Enter a gift only once—in Part 1, Part 2, or Part 3.
•
column E of Part 1 (Schedule A), list the date of the gift as the Do not enter any gift or part of a gift that qualified for the
•
calendar year for which you are deemed to have made the gift political organization, educational, or medical exclusion.
(that is, the year of the current Form 709 you are filing). Do not Enter gifts under “Gifts made by spouse” only if you have
•
list the actual year of contribution for subsequent years. chosen to split gifts with your spouse and your spouse is
However, if in any of the last 4 years of the election, you did required to file a Form 709 (see Part 1—General
not make any other gifts that would require you to file a Form Information, Lines 12–18. Split Gifts, earlier).
709, you do not need to file Form 709 to report that year's portion • In column F, enter the full value of the gift (including those
of the election amount. made by your spouse, if applicable). If you have chosen to
Example. In 2023, D contributed $100,000 to a QTP for the split gifts, that one-half portion of the gift is entered in
benefit of A. D elects to treat $85,000 of this contribution as column G.
having been made ratably over a 5-year period. Accordingly, for
2023, D reports the following.
Gifts to Donees Other Than Your Spouse
$15,000 (the amount of the contribution that exceeded You must always enter all gifts of future interests that you made
$85,000) during the calendar year regardless of their value.
+ $17,000 (the / portion from the election)1 5 Gift splitting not elected. If the total gifts of present interests
$32,000 the total gift to A listed in Part 1 of Schedule A for to any donee are more than $17,000 in the calendar year, then
2023 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
In 2024, D gives a gift of $20,000 cash to B and no other gifts. less, you need not enter on Schedule A any gifts (except gifts of
On 2024 Form 709, D reports in Part 1 of Schedule A the future interests) that you made to that donee. Enter these gifts in
$20,000 gift to B and a $17,000 gift to A (the one-fifth portion of the top half of Part 1, 2, or 3, as applicable.
the 2023 gift that is treated as made in 2024). In column E of Part Gift splitting elected. Enter on Schedule A the entire value of
1 (Schedule A), D lists “2024” as the date of the gift. every gift you made during the calendar year while you were
D makes no gifts in 2025, 2026, or 2027. D is not required to married, even if the gift's value will be less than $17,000 after it is
file Form 709 in any of those years to report the one-fifth portion split in column G of Part 1, 2, or 3 of Schedule A.
of the QTP gift because D is not otherwise required to file Form
Gifts made by spouse. If you elected gift splitting and your
709.
spouse made gifts, list those gifts in the space below “Gifts made
You make the election by checking the box on line B at the top by spouse” in Part 1, 2, or 3. Report these gifts in the same way
of Schedule A. The election must be made for the calendar year you report gifts you made.

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Gifts to Your Spouse Note. If the property transferred in the direct skip would have
Except for the gifts described below, you do not need to enter been includible in the donor's estate if the donor died
any of your gifts to your spouse on Schedule A. immediately after the transfer, see Transfers Subject to an Estate
Tax Inclusion Period (ETIP), earlier.
Terminable interests. Terminable interests are defined in the To determine if a gift “is of an interest in property” and “is
instructions for Part 4, line 4. If all the terminable interests you made to a skip person,” you must first determine if the donee is a
gave to your spouse qualify as life estates with power of “natural person” or a “trust,” as defined below.
appointment (defined under Life estate with power of
appointment, later), you do not need to enter any of them on Trust. For purposes of the GST tax, a trust includes not only an
Schedule A. ordinary trust, but also any other arrangement (other than an
However, if you gave your spouse any terminable interest that estate) that although not explicitly a trust, has substantially the
does not qualify as a life estate with power of appointment, you same effect as a trust. For example, a trust includes life estates
must report on Schedule A all gifts of terminable interests you with remainders, terms for years, and insurance and annuity
made to your spouse during the year. 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 Interest in property. If a gift is made to a natural person, it is
beneficiary (other than yourself), the interest you gave to your always considered a gift of an interest in property for purposes of
spouse is not considered a terminable interest and, therefore, the GST tax.
should not be shown on Schedule A. See section 2523(g)(1). If a gift is made to a trust, a natural person will have an
For definitions and rules concerning these trusts, see section interest in the property transferred to the trust if that person
2056(b)(8)(B). either has a present right to receive income or corpus from the
trust (such as an income interest for life) or is a permissible
Future interest. Generally, you should not report a gift of a current recipient of income or corpus from the trust (for example,
future interest to your spouse unless the future interest is also a possesses a general power of appointment).
terminable interest that is required to be reported as described
earlier. However, if you gave a gift of a future interest to your Skip person. A donee, who is a natural person, is a skip person
spouse and you are required to report the gift on Form 709 if that donee is assigned to a generation that is two or more
because you gave the present interest to a donee other than generations below the generation assignment of the donor. See
your spouse, then you should enter the entire gift, including the Determining the Generation of a Donee, later.
future interest given to your spouse, on Schedule A. You should A donee that is a trust is a skip person if all the interests in the
use the rules under Gifts Subject to Both Gift and GST Taxes, property transferred to the trust (as defined above) are held by
later, to determine whether to enter the gift on Schedule A, Part skip persons.
1, 2, or 3. A trust will also be a skip person if there are no interests in the
Spouses who are not U.S. citizens. If your spouse is not a property transferred to the trust held by any person, and future
U.S. citizen and you gave your spouse a gift of a future interest, distributions or terminations from the trust can be made only to
you must report on Schedule A all gifts to your spouse for the skip persons.
year. If all gifts to your spouse were present interests, do not Nonskip person. A nonskip person is any donee who is not a
report on Schedule A any gifts to your spouse if the total of such skip person.
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 Determining the Generation of a Donee
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 Generally, a generation is determined along family lines as
the gifts even though some may be excluded. follows.
1. If the donee is a lineal descendant of a grandparent of the
Gifts Subject to Both Gift and GST donor (for example, the donor's cousin, niece, nephew,
Taxes 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
Definitions donor from the number of generations between the
Direct skip. The GST tax you must report on Form 709 is that grandparent and the descendant (donee).
imposed only on inter vivos direct skips. An inter vivos direct skip 2. If the donee is a lineal descendant of a grandparent of a
is a transfer that is: spouse (or former spouse) of the donor, the number of
• Subject to the gift tax, generations between the donor and the descendant
• Of an interest in property, and (donee) is determined by subtracting the number of
• Made to a skip person. generations between the grandparent and the spouse (or
All three requirements must be met before the gift is subject to former spouse) from the number of generations between
the GST tax. the grandparent and the descendant (donee).
A gift is “subject to the gift tax” if you are required to list it on 3. A person who at any time was married to a person
Schedule A of Form 709. However, if you make a nontaxable gift described in (1) or (2) above is assigned to the generation
(which is a direct skip) to a trust for the benefit of an individual, of that person. A person who at any time was married to the
this transfer is subject to the GST tax unless: donor is assigned to the donor's generation.
1. During the lifetime of the beneficiary, no corpus or income 4. A relationship by adoption or half-blood is treated as a
may be distributed to anyone other than the beneficiary; and relationship by whole-blood.
2. If the beneficiary dies before the termination of the trust, the A person who is not assigned to a generation according to
assets of the trust will be included in the gross estate of the (1), (2), (3), or (4) above is assigned to a generation based on
beneficiary. the person’s birth date as follows.

Instructions for Form 709 (2023) -9-

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1. A person who was born not more than 12 / years after the 1 2 • The generation assignment of the youngest living ancestor
donor is in the donor's generation. of the individual who is also a descendant of the parent of
2. A person born more than 12 / years, but not more than 1 2 the transferor.
37 / years, after the donor is in the first generation younger 1 2 The same rules apply to the generation assignment of any
than the donor. 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
If more than one of the rules for assigning generations apply not a lineal descendant of the transferor if the transferor at the
to a donee, that donee is generally assigned to the youngest of time of the transfer has any living lineal descendants.
the generations that would apply.
If any transfer of property to a trust would have been a direct
If an estate, trust, partnership, corporation, or other entity skip except for this generation assignment rule, then the rule also
(other than governmental entities and certain charitable applies to transfers from the trust attributable to such property.
organizations and trusts, described in sections 511(a)(2) and Ninety-day rule. For assigning individuals to generations for
511(b)(2), as discussed later) is a donee, then each person who purposes of the GST tax, any individual who dies no later than
indirectly receives the gift through the entity is treated as a 90 days after a transfer occurring by reason of the death of the
donee and is assigned to a generation as explained in the above transferor is treated as having predeceased the transferor. The
rules. 90-day rule applies to transfers occurring on or after July 18,
2005. See Regulations section 26.2651-1(a)(2)(iii) for more
Charitable organizations and trusts, described in sections information.
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 Examples
be listed in Part 1 of Schedule A.
Generation assignments under Notice 2017-15. Notice The GST rules can be illustrated by the following examples.
2017-15 permits a taxpayer to reduce the GST exemption Example 1. You give your house to your daughter with the
allocated to transfers that were made to or for the benefit of remainder then passing to your daughter’s children. This gift is
transferees whose generation assignment is changed as a result made to a “trust” even though there is no explicit trust instrument.
of the Windsor decision. A taxpayer’s GST exemption that was The interest in the property transferred (the present right to use
allocated to a transfer to a transferee (or a trust for the sole the house) is transferred to a nonskip person (your daughter).
benefit of such transferee) whose generation assignment should Therefore, the trust is not a skip person because there is an
have been determined on the basis of a familial relationship as interest in the transferred property that is held by a nonskip
the result of the Windsor decision, and are nonskip persons, is person, and the gift is not a direct skip. The transfer is an indirect
deemed void. For additional information, go to IRS.gov/ skip, however, because on the death of the daughter, a
Businesses/Small-Businesses-Self-Employed/Estate-and-Gift- termination of your daughter’s interest in the trust will occur that
Taxes. may be subject to the GST tax. See the instructions for Part
3—Indirect Skips and Other Transfers in Trust, later, for a
Charitable Remainder Trusts discussion of how to allocate GST exemption to such a trust.
Gifts in the form of charitable remainder annuity trusts, charitable Example 2. You give $100,000 to your grandchild. This gift is
remainder unitrusts, and pooled income funds are not transfers a direct skip that is not made in trust. You should list it in Part 2 of
to skip persons and therefore are not direct skips. You should Schedule A.
always list these gifts in Part 1 of Schedule A even if all of the life Example 3. You establish a trust that is required to
beneficiaries are skip persons. accumulate income for 10 years and then pay its income to your
grandchildren for their lives and upon their deaths distribute the
Generation Assignment Where Intervening corpus to their children. Because the trust has no current
Parent Is Deceased beneficiaries, there are no present interests in the property
If you made a gift to your grandchild and at the time you made transferred to the trust. All of the persons to whom the trust can
the gift, the grandchild's parent (who is your or your spouse's or make future distributions (including distributions upon the
your former spouse's child) is deceased, then for purposes of termination of interests in property held in trust) are skip persons
generation assignment, your grandchild is considered to be your (that is, your grandchildren and great-grandchildren). Therefore,
child rather than your grandchild. Your grandchild's children will the trust itself is a skip person and you should list the gift in Part
be treated as your grandchildren rather than your 2 of Schedule A.
great-grandchildren. Example 4. You establish a trust that pays all of its income to
This rule is also applied to your lineal descendants below the your grandchildren for 10 years. At the end of 10 years, the
level of grandchild. For example, if your grandchild is deceased, corpus is to be distributed to your children. Because for this
your great-grandchildren who are lineal descendants of the purpose interests in trusts are defined only as present interests,
deceased grandchild are considered your grandchildren for all of the interests in this trust are held by skip persons (the
purposes of the GST tax. children's interests are future interests). Therefore, the trust is a
skip person and you should list the entire amount you transferred
This special rule may also apply in other cases of the death of to the trust in Part 2 of Schedule A even though some of the
a parent of the transferee. If property is transferred to a trust's ultimate beneficiaries are nonskip persons.
descendant of a parent of the transferor and that person's parent
(who is a lineal descendant of the parent of the transferor) is Part 1—Gifts Subject Only to Gift Tax
deceased at the time the transfer is subject to gift or estate tax, List in Part 1 gifts subject only to the gift tax. Generally, all of the
then for purposes of generation assignment, the individual is gifts you made to your spouse (that are required to be listed, as
treated as a member of the generation that is one generation described earlier), to your children, and to charitable
below the lower of: organizations are not subject to the GST tax and should
• The transferor's generation, or therefore be listed only in Part 1.

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Group the gifts in four categories. improvements, less applicable depreciation, amortization, and
• Gifts made to your spouse. depletion.
• Gifts made to third parties that are to be split with your
spouse. For more information on adjusted basis, see Pub. 551, Basis
• Charitable gifts (if you are not splitting gifts with your of Assets.
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 The value of a gift is the fair market value (FMV) of the property
separately. on the date the gift is made (valuation date). The FMV is the
price at which the property would change hands between a
Number and describe all gifts (including charitable, public, willing buyer and a willing seller, when neither is forced to buy or
and similar gifts) in the columns provided in Schedule A. to sell, and when both have reasonable knowledge of all relevant
facts. FMV may not be determined by a forced sale price, nor by
Column B 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
Describe each gift in enough detail so that the property can be item must be taken into account whenever appropriate.
easily identified, as explained below.
The FMV of a stock or bond (whether listed or unlisted) is the
For real estate, give: mean between the highest and lowest selling prices quoted on
• A legal description of each parcel; the valuation date. If only the closing selling prices are available,
• The street number, name, and area if the property is located then the FMV is the mean between the quoted closing selling
in a city; and price on the valuation date and on the trading day before the
• A short statement of any improvements made to the valuation date. If there were no sales on the valuation date, figure
property. the FMV as follows.
For bonds, give: 1. Find the mean between the highest and lowest selling
• The number of bonds transferred; prices on the nearest trading date before and the nearest
• The principal amount of each bond; trading date after the valuation date. Both trading dates
• Name of obligor; must be reasonably close to the valuation date.
• Date of maturity; 2. Prorate the difference between mean prices to the valuation
• Rate of interest; date.
• Date or dates when interest is payable;
• Series number, if there is more than one issue; 3. Add or subtract (whichever applies) the prorated part of the
• Exchanges where listed or, if unlisted, give the location of difference to or from the mean price figured for the nearest
the principal business office of the corporation; and trading date before the actual valuation date.
• CUSIP number. The CUSIP number is a nine-digit number
assigned by the American Banking Association to traded If no actual sales were made reasonably close to the
securities. valuation date, make the same computation using the mean
between the bona fide bid and the asked prices instead of sales
For stocks: prices. If actual sales prices or bona fide bid and asked prices
• Give number of shares; are available within a reasonable period of time before the
• State whether common or preferred; valuation date but not after the valuation date, or vice versa, use
• If preferred, give the issue, par value, quotation at which the mean between the highest and lowest sales prices or bid and
returned, and exact name of corporation; asked prices as the FMV.
• If unlisted on a principal exchange, give the location of the
principal business office of the corporation, the state in Stock of close corporations or inactive stock must be valued
which incorporated, and the date of incorporation; on the basis of net worth, earnings, earning and dividend
• If listed, give principal exchange; and capacity, and other relevant factors.
• CUSIP number.
Generally, the best indication of the value of real property is
For interests in property based on the length of a person's life, the price paid for the property in an arm's-length transaction on
give the date of birth of the person. If you transfer any interest in or before the valuation date. If there has been no such
a closely held entity, provide the EIN of the entity. transaction, use the comparable sales method. In comparing
similar properties, consider differences in the date of the sale,
For life insurance policies, give the name of the insurer and and the size, condition, and location of the properties, and make
the policy number. all appropriate adjustments.

Clearly identify in the description column which gifts create The value of all annuities, life estates, terms for years,
the opening of an ETIP as described under Transfers Subject to remainders, or reversions is generally the present value on the
an Estate Tax Inclusion Period (ETIP), earlier. Describe the date of the gift.
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 Sections 2701 and 2702 provide special valuation rules to
the ETIP becomes effective no earlier than the date of the close determine the amount of the gift when a donor transfers an
of the ETIP. See Schedule D. Computation of GST Tax, later. equity interest in a corporation or partnership (section 2701) or
makes a gift in trust (section 2702). The rules only apply if,
Column D. Donor's Adjusted Basis of Gifts immediately after the transfer, the donor (or an applicable family
member) holds an applicable retained interest in the corporation
Show the basis you would use for income tax purposes if the gift or partnership, or retains an interest in the trust. For details, see
were sold or exchanged. Generally, this means cost plus sections 2701 and 2702, and their regulations.
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Column G. Split Gifts an ETIP on Schedule A. Rather, report the transfer subject to an
ETIP on Schedule D. See Schedule D, Part
Enter an amount in this column only if you have chosen to split 1—Generation-Skipping Transfers, later. Report all other gifts
gifts with your spouse. made during the year on Schedule A as you normally would.

Split Gifts—Gifts Made by Spouses Split Gifts—Gifts Made by Spouse
If you elected to split gifts with your spouse and your spouse has See this heading under Part 1.
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 Part 3—Indirect Skips and Other Transfers in
made gifts and you are splitting them with your spouse, do not Trust
make an entry in this area. Some gifts made to trusts are subject only to gift tax at the time
Generally, if you elect to split your gifts, you must split all gifts of the transfer but may later be subject to GST tax. The GST tax
made by you and your spouse to third-party donees. The only could apply either at the time of a distribution from the trust, at
exception is if you gave your spouse a general power of the termination of the trust, or both.
appointment over a gift you made.
Section 2632(c) defines indirect skips and applies special
Supplemental Documents rules to the allocation of GST exemption to such transfers. In
general, an indirect skip is a transfer of property that is subject to
To support the value of your gifts, you must provide information gift tax (other than a direct skip) and is made to a GST trust. A
showing how it was determined. GST trust is a trust that could have a GST with respect to the
For stock of close corporations or inactive stock, attach transferor, unless the trust provides for certain distributions of
balance sheets, particularly the one nearest the date of the gift, trust corpus to nonskip persons. See section 2632(c)(3)(B) for
and statements of net earnings or operating results and details.
dividends paid for each of the 5 preceding years.
List in Part 3 those gifts that are indirect skips as defined in
For each life insurance policy, attach Form 712, Life section 2632(c) or may later be subject to GST tax. This includes
Insurance Statement. indirect skips for which election 2, described below, will be made
Note for single premium or paid-up policies. In certain in the current year or has been made in a previous year. You
situations, for example, where the surrender value of the policy must list the gifts in Part 3 in the chronological order that you
exceeds its replacement cost, the true economic value of the made them.
policy will be greater than the amount shown on line 59 of Form
712. In these situations, report the full economic value of the Column C. Section 2632(c) Election
policy on Schedule A. See Rev. Rul. 78-137, 1978-1 C.B. 280,
for details. Section 2632(c) provides for the automatic allocation of the
donor's unused GST exemption to indirect skips. This section
If the gift was made by means of a trust, attach a certified or also sets forth three different elections you may make regarding
verified copy of the trust instrument to the return on which you the allocation of exemption.
report your first transfer to the trust. However, to report
subsequent transfers to the trust, you may attach a brief Election 1. You may elect not to have the automatic
description of the terms of the trust or a copy of the trust allocation rules apply to the current transfer made to a
instrument. particular trust.
Election 2. You may elect not to have the automatic rules
Also attach any appraisal used to determine the value of real apply to both the current transfer and any and all future
estate or other property. transfers made to a particular trust.
If you do not attach this information, Schedule A must include Election 3. You may elect to treat any trust as a GST trust for
a full explanation of how value was determined. purposes of the automatic allocation rules.
See section 2632(c)(5) for details.
Part 2—Direct Skips When to make an election. Election 1 is timely made if it is
List in Part 2 only those gifts that are currently subject to both the made on a timely filed gift tax return for the year the transfer was
gift and GST taxes. You must list the gifts in Part 2 in the made or was deemed to have been made.
chronological order that you made them. Number, describe, and
Elections 2 and 3 may be made on a timely filed gift tax return
value the gifts as described in the instructions for Part 1.
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
Column C. Section 2632(b) Election explanation as described below. If you are making election 2 or 3
on a return on which the transfer is not reported, simply attach
If you elect under section 2632(b)(3) to not have the automatic the statement described below.
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 If you are reporting a transfer to a trust for which election 2 or
statement to Form 709 clearly describing the transaction and the 3 was made on a previously filed return, do not make an entry in
extent to which the automatic allocation is not to apply. Reporting column C for that transfer and do not attach a statement.
a direct skip on a timely filed Form 709 and paying the GST tax Attachment. Attach a statement to Form 709 that describes the
on the transfer will qualify as such a statement. election you are making and clearly identifies the trusts and/or
How to report GSTs after the close of an ETIP. If you are transfers to which the election applies.
reporting a GST that was subject to an ETIP (provided the ETIP
closed as a result of something other than the death of the Split Gifts—Gifts Made by Spouse
transferor; see Form 706), do not include the transfer subject to See this heading under Part 1.

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Part 4—Taxable Gift Reconciliation 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
Line 1 and to the power are a fractional or percentile share of the entire
property interest. This means that the interest or share will reflect
Enter only gifts of the donor. If gift splitting has been elected, any increase or decrease in the value of the entire property
enter only the value of the gift that is attributable to the spouse interest. If the spouse is entitled to receive a specified sum of
that is filing the return. income annually, the capital amount that would produce such a
sum will be considered the specific portion from which the
Line 2 spouse is entitled to receive the income.
Election to deduct qualified terminable interest property
Enter the total annual exclusions you are claiming for the gifts (QTIP). You may elect to deduct a gift of a terminable interest if
listed on Schedule A. See Annual Exclusion, earlier. If you split a it meets requirements (1), (2), and (4) earlier, even though it
gift with your spouse, the annual exclusion you claim against that does not meet requirement (3).
gift may not be more than the smaller of your half of the gift or
$17,000. You make this election simply by listing the QTIP on
Schedule A and deducting its value from Schedule A, Part 4,
Deductions line 4. You are presumed to have made the election for all
qualified property that you both list and deduct on Schedule A.
Line 4. Marital Deduction You may not make the election on a late-filed Form 709.
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 Line 5
any gift that you did not include on Schedule A. On the dotted
line on line 4, indicate which numbered items from Schedule A Enter the amount of the annual exclusions that were claimed for
are gifts to your spouse for which you are claiming the marital the gifts listed on line 4.
deduction.
Do not enter on line 4 any gifts to your spouse who was Line 7. Charitable Deduction
TIP not a U.S. citizen at the time of the gift.
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 • The United States, a state or political subdivision of a state,
during the year that you entered on Schedule A regardless of or the District of Columbia for exclusively public purposes;
amount, and certain gifts of terminable interests as outlined • Any corporation, trust, community chest, fund, or foundation
below. organized and operated only for religious, charitable,
Terminable interests. Generally, you cannot take the marital scientific, literary, or educational purposes, or to prevent
deduction if the gift to your spouse is a terminable interest. In cruelty to children or animals, or to foster national or
most instances, a terminable interest is nondeductible if international amateur sports competition (if none of its
someone other than the donee spouse will have an interest in activities involve providing athletic equipment unless it is a
the property following the termination of the donee spouse's qualified amateur sports organization), as long as no part of
interest. Some examples of terminable interests are: the earnings benefits any one person, no substantial
• A life estate, propaganda is produced, and no lobbying or campaigning
• An estate for a specified number of years, or for any candidate for public office is done;
• Any other property interest that after a period of time will • A fraternal society, order, or association operating under a
terminate or fail. lodge system, if the transferred property is to be used only
for religious, charitable, scientific, literary, or educational
If you transfer an interest to your spouse as sole joint tenant purposes, including the encouragement of art and the
with yourself or as a tenant by the entirety, the interest is not prevention of cruelty to children or animals; or
considered a terminable interest just because the tenancy may • Any war veterans' organization organized in the United
be severed. States (or any of its territories), or any of its auxiliary
Life estate with power of appointment. You may deduct, departments or local chapters or posts, as long as no part of
without an election, a gift of a terminable interest if all four any of the earnings benefits any one person.
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 (minus annual exclusions allowed). On the dotted line, indicate
entire interest. which numbered items from the top of Schedule A are charitable
2. The income is paid yearly or more often. gifts.
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 If GST tax is due on any direct skips reported on this return, the
power of appointment (except to appoint it to your spouse). amount of that GST tax is also considered a gift and must be
If either the right to income or the power of appointment given added to the value of the direct skip reported on this return.
to your spouse pertains only to a specific portion of a property
interest, the marital deduction is allowed only to the extent that If you entered gifts on Part 2, or if you and your spouse
the rights of your spouse meet all four of the above conditions. elected gift splitting and your spouse made gifts subject to the
For example, if your spouse is to receive all of the income from GST tax that you are required to show on your Form 709,
the entire interest, but only has a power to appoint one-half of the complete Schedule D, and enter on line 10 the total from
entire interest, then only one-half qualifies for the marital Schedule D, Part 3, column G. Otherwise, enter zero on line 10.
deduction.
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Line 12. Election Out of QTIP Treatment of under which the returns were filed. If there was any other
Annuities variation in the names under which you filed, such as the use of
full given names instead of initials, please explain.
Section 2523(f)(6) creates an automatic QTIP election for gifts of
joint and survivor annuities where the spouses are the only Column C
possible recipients of the annuity prior to the death of the last To determine the amount of applicable credit (formerly unified
surviving spouse. credit) used for gifts made after 1976, use the Worksheet for
Schedule B, Column C (Credit Allowable for Prior Periods),
The donor spouse can elect out of QTIP treatment, however, unless your prior gifts total $500,000 or less.
by checking the box on line 12 and entering the item number Prior gifts totaling $500,000 or less. In column C, enter the
from Schedule A for the annuities for which you are making the amount of applicable credit actually applied in the prior period.
election. Any annuities entered on line 12 cannot also be entered Prior gifts totaling over $500,000. See Redetermining the
on line 4 of Schedule A, Part 4. Any such annuities that are not Applicable Credit, later.
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 Column D
not required to make the election for all of them. Once made, the In column D, enter the amount of specific exemption claimed for
election is irrevocable. gifts made in periods ending before January 1, 1977.

Schedule B. Gifts From Prior Periods Column E
If you did not file gift tax returns for previous periods, check the In column E, show the correct amount (the amount finally
“No” box on page 1 of Form 709, line 11a, of Part 1—General determined) of the taxable gifts for each earlier period.
Information. If you filed gift tax returns for previous periods, See Regulations section 25.2504-2 for rules regarding the
check the “Yes” box on line 11a and complete Schedule B by final determination of the value of a gift.
listing the years or quarters in chronological order as described
below. If you need more space, attach a separate sheet using Note. Amounts shown in column E should reflect all taxable
the same format as Schedule B. gifts, even if no gift tax was paid due to the applicable (formerly
Complete Schedule A before beginning Schedule B. unified) credit.

CAUTION! Redetermining the Applicable Credit
To redetermine the applicable credit for prior gifts in excess of
Column A $500,000, use the Worksheet for Schedule B, Column C (Credit
If you filed returns for gifts made before 1971 or after 1981, show Allowable for Prior Periods).
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 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
Taxable Gifts for Current Period be combined in the first row.
C Enter the amount from column D of the previous row.
Taxable Gifts for Prior Periods
D Enter the sum of columns B and C from the current row.
Cumulative Taxable Gifts Including Current Period
E Enter the amount from column F of the previous row.
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 Gift Tax.
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
Used DSUE Amount From Predeceased Spouse(s) and deceased spouse and used by the donor in prior periods and the current period, and (b)
Restored Exclusion Amount 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.
I Enter the exclusion amount corresponding with the year listed in column A of the current row.
Basic Exclusion Amount for Year of Gift (See Table of Basic Exclusion and Credit Amounts.)
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.
Applicable Credit Amount Used in Prior Periods
M Subtract the amount in column L from the amount in column K of the current row and enter here.
Available Credit in Current Period
N Enter the lesser of column G or column M of the current row.
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 Taxable Cumulative Tax on Tax on Tax on DSUE From Basic Applicable Applicable Applicable Available Credit
Gifts for Gifts for Taxable Gifts Gifts for Cumulative Gifts for Pre- Exclusion Exclusion Credit Credit Credit in Allowable
Current Prior Including Prior Gifts Current deceased for the Year Amount Amount Amount Current (lesser of
Period Periods1 Current Periods Including Period Spouse(s) of Gift4 (Col. H + Based on Used in Prior Period Col. G or
Period (Col. C)2, 3 Current (Col. F – and Col. I) Column J3, 5 Periods3, 6 (Col. K – Col. Col. M)
(Col. B + Col. Period (Col. Col. E) Restored L)
C) D)3 Exclusion
Amount
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.

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                                                           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   Taxable                 Cumulative     Tax on       Tax on               Tax on    DSUE From   Basic       Applicable Applicable               Applicable    Available      Credit 
          Gifts for Gifts for  Taxable Gifts               Gifts for    Cumulative           Gifts for  Pre-       Exclusion   Exclusion                  Credit   Credit        Credit in      Allowable
          Current   Prior                   Including      Prior        Gifts                Current   Deceased    for Year of Amount                     Amount   Amount        Current        (lesser of 
          Period    Periods1                Current        Periods      Including            Period    Spouse(s)   the Gift4   (Col. H +                  Based on Used in Prior Period         Col. G or 
                                            Period         (Col. C)2, 3 Current              (Col. F –  and                    Col. I)    Column J3, 5             Periods3, 6   (Col. K – Col. Col. M)
                                            (Col. B + Col.              Period (Col.         Col. E)    Restored                                                                 L)
                                              C)                        D)3                            Exclusion 
                                                                                                        Amount
 Pre-1977
 2004     800,000                      0      800,000                0  267,800              267,800             0 1,000,000   1,000,000                  345,800             0  345,800        267,800
 2007     300,000   800,000                   1,100,000    267,800      385,800              118,000             0 1,000,000   1,000,000                  345,800  267,800       78,000         78,000
 2009     200,000   1,100,000                 1,300,000    385,800      465,800              80,000              0 1,000,000   1,000,000                  345,800  345,800                 0               0
                                                                        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   Taxable                 Cumulative     Tax on       Tax on               Tax on    DSUE From   Basic       Applicable Applicable               Applicable    Available      Credit 
          Gifts for Gifts for  Taxable Gifts               Gifts for    Cumulative           Gifts for  Pre-       Exclusion   Exclusion                  Credit   Credit        Credit in      Allowable
          Current   Prior                   Including      Prior        Gifts                Current   Deceased    for Year of Amount                     Amount   Amount        Current        (lesser of 
          Period    Periods1                Current        Periods      Including            Period    Spouse(s)   the Gift4   (Col. H +                  Based on Used in Prior Period         Col. G or 
                                            Period         (Col. C)2, 3 Current              (Col. F –  and                    Col. I)    Column J3, 5             Periods3, 6   (Col. K – Col. Col. M)
                                            (Col. B + Col.              Period (Col.         Col. E)    Restored                                                                 L)
                                              C)                        D)3                            Exclusion 
                                                                                                        Amount
 Pre-1977 200,000                             200,000                   54,800
 1987     600,000   200,000                   800,000      54,800       267,800              213,000             0 600,000     600,000                    192,800             0  192,800        192,800
 1999     200,000   800,000                 1,000,000      267,800      345,800              78,000              0 650,000     650,000                    211,300  192,800       18,500         18,500
 2002       100     1,000,000               1,000,100      345,800      345,840                     40           0 1,000,000   1,000,000                  345,800  211,300       134,500               40
                                                                        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.

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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 Taxable Cumulative Tax on Tax on Tax on DSUE From Basic Applicable Applicable Applicable Available Credit
Gifts for Gifts for Taxable Gifts Gifts for Cumulative Gifts for Pre- Exclusion Exclusion Credit Credit Credit in Allowable
Current Prior Including Prior Gifts Current Deceased for Year of Amount Amount Amount Current (lesser of
Period Periods1 Current Periods Including Period Spouse(s) the Gift5 (Col. H + Based on Used in Prior Period Col. G or
Period (Col. C)2, 3 Current (Col. F – and Col. I) Column J3, 6 Periods3, 7 (Col. K – Col. Col. M)
(Col. B + Col. Period (Col. Col. E) Restored L)
C) D)3 Exclusion
Amount4
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
YYYY
YYYY
Total Applicable Credit Used in Prior Periods (Enter the Total of Column N on Schedule B, Line 1, Column C) : 3,545,800
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 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 Taxable Cumulative Tax on Tax on Tax on DSUE From Basic Applicable Applicable Applicable Available Credit
Gifts for Gifts for Taxable Gifts Gifts for Cumulative Gifts for Pre- Exclusion Exclusion Credit Credit Credit in Allowable
Current Prior Including Prior Gifts Current Deceased for Year of Amount Amount Amount Current (lesser of
Period Periods1 Current Periods Including Period Spouse(s) the Gift4 (Col. H + Based on Used in Prior Period Col. G or
Period (Col. C)2, 3 Current (Col. F – and Col. I) Column J3, 5 Periods3, 6 (Col. K – Col. Col. M)
(Col. B + Col. Period (Col. Col. E) Restored L)
C) D)3 Exclusion
Amount
Pre-1977
2002 4,000,000 0 4,000,000 0 1,545,800 1,545,800 0 1,000,000 1,000,000 345,800 0 345,800 345,800
2011 4,000,000 4,000,000 8,000,000 1,545,800 3,145,800 1,600,000 4,000,000 5,000,000 9,000,000 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.

Instructions for Form 709 (2023) -17-

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Table of Basic Exclusion and Credit Amounts                         deceased spouse, except to the extent allowed by treaty with the 
                                                                    surviving spouse’s country of citizenship.
(as Recalculated for 2023 Rates)
                                                                    Last Deceased Spouse Limitation
         Period               Exclusion Amounts Credit Amounts      The last deceased spouse is the most recently deceased person 
1977 (Quarters 1 & 2)            $30,000                 $6,000     who was married to the surviving spouse at the time of that 
                                                                    person's death. The identity of the last deceased spouse is 
1977 (Quarters 3 & 4)            $120,667             $30,000       determined as of the day a taxable gift is made and is not 
1978                             $134,000             $34,000       impacted by whether the decedent's estate elected portability or 
1979                             $147,333             $38,000       whether the last deceased spouse had any DSUE amount 
                                                                    available. Remarriage also does not affect the designation of the 
1980                             $161,563             $42,500       last deceased spouse and does not prevent the surviving 
1981                             $175,625             $47,000       spouse from applying the DSUE amount to taxable transfers.
1982                             $225,000             $62,800            When a taxable gift is made, the DSUE amount received from 
1983                             $275,000             $79,300       the last deceased spouse is applied before the surviving 
                                                                    spouse's basic exclusion amount. A surviving spouse who has 
1984                             $325,000             $96,300       more than one predeceased spouse is not precluded from using 
1985                             $400,000             $121,800      the DSUE amount of each spouse in succession. A surviving 
                                                                    spouse may not use the sum of DSUE amounts from multiple 
1986                             $500,000             $155,800
                                                                    predeceased spouses at one time nor may the DSUE amount of 
1987 through 1997                $600,000             $192,800      a predeceased spouse be applied after the death of a 
1998                             $625,000             $202,050      subsequent spouse.
1999                             $650,000             $211,300           When a surviving spouse applies the DSUE amount to a 
2000 and 2001                    $675,000             $220,550      lifetime gift, the IRS may examine any return of a predeceased 
                                                                    spouse whose executor elected portability to verify the allowable 
2002 through 2010                $1,000,000           $345,800      DSUE amount. The DSUE may be adjusted or eliminated as a 
2011                             $5,000,000           $1,945,800    result of the examination; however, the IRS may make an 
                                                                    assessment of additional tax on the return of a predeceased 
2012                             $5,120,000           $1,993,800    spouse only within the applicable limitations period under 
2013                             $5,250,000           $2,045,800    section 6501.
2014                             $5,340,000           $2,081,800    Restored Exclusion Amount. Prior to the decision of the 
2015                             $5,430,000           $2,117,800    Supreme Court in United States  . Windsorv , 570 U.S. 744, 133 
                                                                    S. Ct. 2675 (2013), the Defense of Marriage Act (DOMA), Public 
2016                             $5,450,000           $2,125,800    Law 104-199 (110 Stat. 2419), required that marriages of 
2017                             $5,490,000           $2,141,800    couples of the same sex should not be treated as being married 
2018                             $11,180,000          $4,417,800    for federal tax purposes. As a result, taxpayers in a same-sex 
                                                                    marriage were not entitled to claim a marital deduction for gifts or 
2019                             $11,400,000          $4,505,800    bequests to each other. Those taxpayers were required to use 
2020                             $11,580,000          $4,577,800    their applicable exclusion amount to defray any gift or estate tax 
2021                             $11,700,000          $4,625,800    imposed on the transfer or were required to pay gift or estate 
                                                                    taxes, to the extent the taxpayer's exclusion previously had been 
2022                             $12,060,000          $4,769,800    exhausted.
2023                             $12,920,000          $5,113,800         In Windsor, the Supreme Court declared that DOMA was 
                                                                    unconstitutional. For federal tax purposes, marriages of couples 
Schedule C. Portability of Deceased                                 of the same sex are treated the same as marriages of couples of 
                                                                    the opposite sex. The term “spouse” includes an individual 
Spousal Unused Exclusion (DSUE)                                     married to a person of the same sex. However, individuals who 
                                                                    have entered into a registered domestic partnership, civil union, 
Amount and Restored Exclusion                                       or other similar relationship that isn't considered a marriage 
Amount                                                              under state law aren't considered married for federal tax 
Section 303 of the Tax Relief, Unemployment Insurance               purposes.
Reauthorization, and Job Creation Act of 2010 authorized                 Under a new procedure, a donor who made a transfer to the 
estates of decedents dying on or after January 1, 2011, to elect    donor's same-sex spouse, which resulted in a reduction of the 
to transfer any unused exclusion to the surviving spouse. The       donor's applicable exclusion amount, can now recalculate the 
amount received by the surviving spouse is called the deceased      remaining applicable exclusion. This procedure is only available 
spousal unused exclusion, or DSUE, amount. If the executor of       to transfers that did not qualify for the marital deduction for 
the decedent's estate elects transfer, or portability, of the DSUE  federal gift tax purposes at the time of the transfer, based solely 
amount, the surviving spouse can apply the DSUE amount              on the application of DOMA. If the limitations period has expired, 
received from the estate of the last deceased spouse (defined       the donor may recalculate the remaining applicable exclusion. 
later) against any tax liability arising from subsequent lifetime   However, once the limitations period on assessment of tax has 
gifts and transfers at death.                                       expired, neither the value of the transferred interest nor any 
                                                                    position concerning a legal issue (other than the existence of the 
         Complete Schedule A before beginning Schedule C.           marriage) related to the transfer can be changed. Similarly, no 
CAUTION!                                                            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.
Note.    A nonresident surviving spouse who is not a citizen of the 
United States may not take into account the DSUE amount of a 

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The first step of the procedure is to determine the amount of spouses, or if the donor is a taxpayer who made a taxable
applicable exclusion that was expended on a taxable gift to a transfer to a same-sex spouse which resulted in a reduction of
same-sex spouse. In any given year, the amount of applicable the taxpayer's available applicable exclusion amount (or both).
exclusion expended on a taxable gift to a same-sex spouse is
equal to the amount of applicable exclusion expended on all Schedule C requests information on all DSUE amounts
taxable gifts multiplied by the ratio of the amount of taxable gifts received from the donor's last deceased spouse and any
to the same-sex spouse over total taxable gifts. The amount of previously deceased spouses. Each line in the chart should
applicable exclusion expended on all taxable gifts is equal to the reflect a different predeceased spouse. Attach proof of each
lesser of the available applicable exclusion or the amount of all portability election reported on Schedule C.
taxable gifts.
Example. In 2011, A made $5 million of taxable gifts. A made Part 1. DSUE Received From the Last Deceased
a $3 million taxable gift to B, same-sex spouse, and a $2 million Spouse
taxable gift to C, another individual. A's marriage to B was
recognized by the state where they got married, but was not In this Part, include information about the DSUE amount from the
recognized by the federal government. The transfer to B would donor's most recently deceased spouse (whose date of death is
qualify for the marital deduction if A's marriage to B was after December 31, 2010). In column E, enter the total of the
recognized by the federal government. A has a basic exclusion amount in column D that the donor has applied to gifts in
of $5 million. A had previously used $1 million of the applicable previous years and is applying to gifts reported on this return. A
exclusion on other gifts in previous years. This means that A had donor may apply DSUE only to gifts made after the DSUE arose.
$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 Part 2. DSUE Received From Other Predeceased
all $4 million of the available applicable exclusion on all taxable Spouse(s)
gifts during the year.
Enter information about the DSUE amount from the spouse(s), if
Example of Calculation of Restored Exclusion any, who died prior to the donor's most recently deceased
Amount spouse (but not before January 1, 2011) if the prior spouse's
executor elected portability of the DSUE amount. In column D,
Taxable gifts to B indicate the amount of DSUE received from the estate of each
Applicable exclusion _______ Applicable exclusion predeceased spouse. In column E, enter the portion of the
expended on all x Total taxable = allocable to gifts to B amount of DSUE shown in column D that was applied to prior
taxable gifts lifetime gifts or transfers. A donor may apply DSUE only to gifts
gifts
made after the DSUE arose.
$3 million Any remaining DSUE from a predeceased spouse
$4 million x _______ = $2,400,000 ! cannot be applied against tax arising from lifetime gifts if
$5 million CAUTION that spouse is not the most recently deceased spouse
on the date of the gift. This rule applies even if the last deceased
In 2011, A expended $2,400,000 of the applicable exclusion spouse had no DSUE amount or made no valid portability
on the taxable gift to B. election, or if the DSUE amount from the last deceased spouse
The second step of the procedure is to repeat the first step for has been fully applied to gifts in previous periods.
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 Determining the Applicable Credit Amount
the years. The result is the total amount of applicable exclusion Including DSUE and the Restored Exclusion
expended on the same-sex spouse. This amount of applicable Amount
exclusion will be restored to the donor for use on future gifts and
bequests and is known as the Restored Exclusion Amount. Enter On line 1, enter the donor's basic exclusion amount; for 2023,
this amount on line 3 of Schedule C. this amount is $12,920,000. Add the amounts listed in column E
Attach a statement to Form 709 detailing the calculation of from Parts 1 and 2 and enter the total on line 2. On line 3, enter
the above procedure on the first Form 709 that you claim a the Restored Exclusion Amount. On line 4, enter the total of lines
Restored Exclusion Amount. 1, 2, and 3. Using the Table for Computing Gift Tax, determine
the donor's applicable credit by applying the appropriate tax rate
The Restored Exclusion Amount will have to be to the amount on line 4. Enter this amount on line 5 and on line 7
! accounted for the donor on every subsequent Form 709 of Part 2—Tax Computation.
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 Schedule D. Computation of GST Tax
Exclusion Amount will be entered on line 9c of Part 2—Tax
Computation on Form 706.) In addition, the Worksheet for Part 1—Generation-Skipping Transfers
Schedule B, Column C (Credit Allowable for Prior Periods) Enter in Part 1 all of the gifts you listed in Part 2 of Schedule A, in
should reflect the Restored Exclusion Amount. For the period the same order and showing the same values. If reporting the
where the applicable exclusion was first restored, and on every GST portion of transfers subject to an ETIP, see How to report
subsequent period listed on the worksheet, add the Restorable GSTs after the close of an ETIP, later.
Exclusion Amount to the total DSUE amount (if any) and enter
the sum in column H.
Column A

Completing Schedule C List items from Schedule A, Part 2, column A, in the same order.
Complete Schedule C if the donor is a surviving spouse who Next, list items to be reported on Schedule D (including ETIP
received a DSUE amount from one or more predeceased transfers), if any.
Instructions for Form 709 (2023) -19-

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Column B                                                                 Year                                                   Amount
                                                                         1999 . . . . . . . . . . . . . . . . . . . . . . . . . $1,010,000
Only provide descriptions for ETIP transfers; otherwise, leave           2000 . . . . . . . . . . . . . . . . . . . . . . . . . $1,030,000
blank.                                                                   2001 . . . . . . . . . . . . . . . . . . . . . . . . . $1,060,000
                                                                         2002 . . . . . . . . . . . . . . . . . . . . . . . . . $1,100,000
Column D                                                                 2003 . . . . . . . . . . . . . . . . . . . . . . . . . $1,120,000
                                                                         2004 and 2005  . . . . . . . . . . . . . . . . . . .   $1,500,000
You are allowed to claim the gift tax annual exclusion currently         2006, 2007, and 2008   . . . . . . . . . . . . . . .   $2,000,000
allowable for your reported direct skips (other than certain direct      2009 . . . . . . . . . . . . . . . . . . . . . . . . . $3,500,000
skips to trusts—see Note below) using the rules and limits               2010 and 2011  . . . . . . . . . . . . . . . . . . .   $5,000,000
discussed earlier for the gift tax annual exclusion. However, you        2012 . . . . . . . . . . . . . . . . . . . . . . . . . $5,120,000
must allocate the exclusion on a gift-by-gift basis for GST              2013 . . . . . . . . . . . . . . . . . . . . . . . . . $5,250,000
computation purposes. You must allocate the exclusion to each            2014 . . . . . . . . . . . . . . . . . . . . . . . . . $5,340,000
gift, to the extent desired but not exceeding the maximum                2015 . . . . . . . . . . . . . . . . . . . . . . . . . $5,430,000
allowable amount, in chronological order, beginning with the             2016 . . . . . . . . . . . . . . . . . . . . . . . . . $5,450,000
earliest gift that qualifies for the exclusion. Be sure that you do      2017 . . . . . . . . . . . . . . . . . . . . . . . . . $5,490,000
not claim a total exclusion of more than $17,000 per donee.              2018 . . . . . . . . . . . . . . . . . . . . . . . . . $11,180,000
                                                                         2019 . . . . . . . . . . . . . . . . . . . . . . . . . $11,400,000
Note.  You may not claim any annual exclusion for a transfer             2020 . . . . . . . . . . . . . . . . . . . . . . . . . $11,580,000
made to a trust unless the trust meets the requirements                  2021 . . . . . . . . . . . . . . . . . . . . . . . . . $11,700,000
discussed under Part 2—Direct Skips, earlier.                            2022 . . . . . . . . . . . . . . . . . . . . . . . . . $12,060,000
How to report GSTs after the close of an ETIP. If you are                2023 . . . . . . . . . . . . . . . . . . . . . . . . . $12,920,000
reporting a GST that occurred because of the close of an ETIP, 
complete Part 1 as follows.
Column B. For transfers subject to an ETIP only, describe           In general, each annual increase can only be allocated to 
each transfer as provided in the instructions for Part 1 of         transfers made (or appreciation occurring) during or after the 
Schedule A. In addition, describe the interest that is closing the  year of the increase.
ETIP, explain what caused the interest to terminate, list the date       Example.       A donor made $1,750,000 in direct-skip GSTs 
the ETIP closed, and list the year the gift portion of the transfer through 2005, and allocated all $1,500,000 of the exemption to 
was reported and its item number on Schedule A that was             those transfers. In 2023, the donor makes a $2,000,000 taxable 
originally filed to report the gift portion of the ETIP transfer.   GST. The donor can allocate $2,000,000 of exemption to the 
Column C.                                                           2023 transfer but cannot allocate the $9,420,000 of unused 2023 
                                                                    exemption to pre-2023 transfers.
1. If the GST exemption is being allocated on a timely filed 
(including extensions) gift tax return, enter the value as of            However, if in 2005, the donor made a $1,750,000 transfer to 
the close of the ETIP.                                              a trust that was not a direct skip, but from which GSTs could be 
                                                                    made in the future, the donor could allocate the increased 
2. If the GST exemption is being allocated on a late-filed (past    exemption to the trust, even though no additional transfers were 
the due date including extensions) gift return, enter the           made to the trust. See Regulations section 26.2642-4 for the 
value as of the date the gift tax return was filed.                 redetermination of the applicable fraction when additional 
                                                                    exemption is allocated to the trust.
Part 2—GST Exemption Reconciliation                                      Keep a record of your transfers and exemption allocations to 
Line 1                                                              make sure that any future increases are allocated correctly.
                                                                         Enter on line 1 of Part 2 the maximum GST exemption you are 
Every donor is allowed a lifetime GST exemption. The amount of      allowed. This will not necessarily be the highest indexed amount 
the exemption for 2023 is $12,920,000. For transfers made           if you made no GSTs during the year of the increase.
through 1998, the GST exemption was $1 million. The exemption            The donor can apply this exemption to inter vivos transfers 
amounts for 1999 through 2023 are as follows.                       (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.
                                                                         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)

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                                      Table for Computing Gift Tax
             Column A                 Column B                                    Column C                   Column D
                                                                                                             Rate of tax
             Taxable                  Taxable                                     Tax on                      on excess
              amount                   amount                                      amount in                  over amount
              over—                    not over—                                   column A                   in column A
              - - - - -               $10,000                                       - - - - -            18%
             $10,000                  20,000                                        $1,800               20%
              20,000                  40,000                                         3,800               22%
              40,000                  60,000                                         8,200               24%
              60,000                  80,000                                        13,000               26%

              80,000                  100,000                                       18,200               28%
             100,000                  150,000                                       23,800               30%
             150,000                  250,000                                       38,800               32%
             250,000                  500,000                                       70,800               34%
             500,000                  750,000                                     155,800                37%
             750,000                  1,000,000                                   248,300                39%
             1,000,000                - - - - -                                   345,800                40%

Line 5                                                                   Column C

Enter the amount of GST exemption you are applying to transfers          You are not required to allocate your available exemption. You 
reported in Part 3 of Schedule A.                                        may allocate some, all, or none of your available exemption, as 
                                                                         you wish, among the gifts listed in Part 3 of Schedule D. 
Section 2632(c) provides an automatic allocation to indirect             However, the total exemption claimed in column C may not 
skips of any unused GST exemption. The unused exemption is               exceed the amount you entered on line 3 of Part 2 of 
allocated to indirect skips to the extent necessary to make the          Schedule D.
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, 
Line 6
                                                                         “1.000”).
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 
To allocate your exemption to such transfers, attach a 
statement to this Form 709 and entitle it “Notice of Allocation.”        Form 709)
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       To compute the tax for the amount on line 3 (to be entered on 
  known.                                                                 line 4) and the tax for the amount on line 2 (to be entered on 
• If this is a late allocation, the year the transfer was reported       line 5), use the Table for Computing Gift Tax.
  on Form 709.
• The value of the trust assets at the effective date of the             Line 7
  allocation.                                                            The applicable credit (formerly unified credit) amount is the 
• The amount of your GST exemption allocated to each gift (or            tentative tax on the applicable exclusion amount. For gifts made 
  a statement that you are allocating exemption by means of a            in 2023, the applicable exclusion amount equals:
  formula such as “an amount necessary to produce an                       The basic exclusion amount of $12,920,000, PLUS
  inclusion ratio of zero”).                                             •
• The inclusion ratio of the trust after the allocation.                 • Any DSUE amount, PLUS
                                                                         • 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 
Note. Where the property involved in such a transfer is subject          apply any available applicable credit against gift tax. If you are 
to an ETIP, an allocation of the GST exemption at the time of the        not eligible to use a DSUE amount from a predeceased spouse, 
transfer will only become effective at the end of the ETIP. For          or Restored Exclusion Amount on taxable gifts made to a 
details, see Transfers Subject to an Estate Tax Inclusion Period         same-sex spouse, enter $5,113,800 on line 7. Nonresidents not 
(ETIP), earlier, and section 2642(f).                                    citizens of the United States may not claim the applicable credit 
                                                                         and should enter zero on line 7.
Part 3—Tax Computation
You must enter in Part 3 every gift you listed in Part 1 of               If you are eligible to use a DSUE amount from a predeceased 
Schedule D.                                                              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.
Instructions for Form 709 (2023)                                     -21-

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Determine the tentative tax on the applicable exclusion               sign the return as preparer unless that person is your regular 
amount using the rates in the Table for Computing Gift Tax, and       full-time employee.
enter the result on line 7.
                                                                           Remember, if you and your spouse have consented to split 
Line 10                                                               gifts, your spouse must also sign and date the return in Part 1, 
                                                                      line 18.
Enter 20% of the amount allowed as a specific exemption for 
gifts made after September 8, 1976, and before January 1, 1977.       Third-party designee. If you want to allow the return preparer 
(These amounts will be among those listed in Schedule B,              (listed on the bottom of page 1 of Form 709) to discuss your 
column D, for gifts made in the third and fourth quarters of 1976.)   2023 Form 709 with the IRS, check the “Yes” box to the far right 
                                                                      of your signature on page 1 of your return.
Line 13                                                                    If you check the “Yes” box, you (and your spouse, if splitting 
Gift tax conventions are in effect with Australia, Austria,           gifts) are authorizing the IRS to call your return preparer to 
Denmark, France, Germany, Japan, and the United Kingdom. If           answer questions that may arise during the processing of your 
you are claiming a credit for payment of foreign gift tax, figure the return. You are also authorizing the return preparer of your 2023 
credit and attach the calculation to Form 709, along with             Form 709 to:
evidence that the foreign taxes were paid. See the applicable              • Give the IRS any information that is missing from your return;
convention for details of computing the credit.                            • Call the IRS for information about the processing of your 
                                                                             return or the status of your payment(s);
Line 19                                                                    • Receive copies of notices or transcripts related to your 
Make your check or money order payable to “United States                     return, upon request; and
Treasury” and write the donor's SSN on it. You may not use an              • Respond to certain IRS notices about math errors, offsets, 
overpayment on Form 1040 or 1040-SR to offset the gift and                   and return preparation.
GST taxes owed on Form 709.                                                You are not authorizing your return preparer to receive any 
                                                                      refund check, to bind you to anything (including any additional 
No checks of $100 million or more accepted.     The IRS 
                                                                      tax liability), or otherwise represent you before the IRS. If you 
cannot accept a single check (including a cashier's check) for 
                                                                      want to expand the authorization of your return preparer, see 
amounts of $100,000,000 ($100 million) or more. If you're 
                                                                      Pub. 947, Practice Before the IRS and Power of Attorney.
sending $100 million or more by check, you'll need to spread the 
payments over two or more checks, with each check made out                 The authorization will automatically end 3 years from the date 
for an amount less than $100 million. The $100 million or more        of filing Form 709. If you wish to revoke the authorization before it 
amount limit does not apply to other methods of payment (such         ends, see Pub. 947.
as electronic payments), so please consider paying by means 
other than checks.

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)

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Recordkeeping. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 min.
Learning about the law or the form. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      1 hr., 53 min.
Preparing the form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 hr., 21 min.
Copying, assembling, and sending the form to the IRS. . . . . . . . . . . . . . . . . . . . . . . . . . .                1 hr., 3 min.

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.

Instructions for Form 709 (2023)                                                   -23-

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