$65,000.00 gift to son

[Tracy Lee]

I believe I need to file Form 709 to report the $65,000.00 father gave to son to buy a house; especially since it was documented at the bank with a gift letter.

This form will not come up in ATX, is it called something different or not exist at all and I have to get the form from the IRS website?

[Tracy Lee]

Looks like it is it's own separate tax return from their 1040?

[jklcpa]

6 minutes ago, Tracy Lee said:

Looks like it is it's own separate tax return from their 1040?

Yes, it is, and the client does need to file the 709 for that gift.

[Lee B]

In a situation like yours they are not that complicated, just take it one step at a time.

[Possi]

I have one in the hole, too. I'll file an extension. Dad went into a memory care facility, sold his home and gifted his 2 children the balance he received from the sale. 

[BulldogTom]

2 hours ago, Tracy Lee said:

I believe I need to file Form 709 to report the $65,000.00 father gave to son to buy a house; especially since it was documented at the bank with a gift letter.

This form will not come up in ATX, is it called something different or not exist at all and I have to get the form from the IRS website?

@Tracy LeeDo you have Max?   Or just the 1040 program?   It is in Max.   You can also do a pay per return with ATX if this is your only 709 for the year?

Tom
Modesto, CA

[Catherine]

3 hours ago, Tracy Lee said:

Looks like it is it's own separate tax return from their 1040?

Yes, but subtract the annual gift exclusion amount, too.  Father gave son $65,000 but $15,000 is the annual exclusion amount, so the reportable gift is $50,000.

[TAXMAN]

Just did one on 100k. It is listed as other on atx. Rather simple if all cash. What to charge??

[Lion EA]

Your hourly rate, perhaps with an uptick to account for your knowledge.

[michaelmars]

lol just did one for 11 million.  Many of my clients chose to use up lifetime exemption before it gets eliminated or lowered.   Separate return and did Dad and Mom give gift? Was son married and the gift to both of them? Many things to consider. 

Big thing to remember is that in the past the 4868 automatically extended the 709 but not this year.    The form 8892 must be filed today.  its simple, just name and address. 

I usually have 3-4 gift returns a year, this year its 9 so far.  Of course some clients haven't come in yet thinking everything is 5/17

[TAXMAN]

The way I read it if tp files 4868 the 709 gets auto extended. "Any extension of time granted for filing your calendar year 2020 federal income tax return will also automatically extend the time to file your 2020 federal gift tax return. Income tax extensions are made by using Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, or Form 2350, Application for Extension of Time To File U.S. Income Tax Return. You may only use these forms to extend the time for filing your gift tax return if you are also requesting an extension of time to file your income tax return. Did I read this wrong or do I need to file? No Tax is due.

[Sara EA]

If no tax is due, file when you get the time.  No extension needed.  Penalties and late filing charges are based on the amount due ($0 X $0 = $0)  IRS uses the 709 just to keep track of lifetime gift amounts.  I rarely do gift tax returns during tax season but put them off until summer.  States may have different rules, so do check there.

[Tracy Lee]

Bulldog Tom, I do have ATX Max and did the return.  Seemed pretty straight forward, nothing due, just informational.

I don't have any kind of a form popping up for me to eFile, does this return have to be paper filed? 

[Slippery Pencil]

6 hours ago, Tracy Lee said:

does this return have to be paper filed

Yes

[BulldogTom]

14 hours ago, Tracy Lee said:

Bulldog Tom, I do have ATX Max and did the return.  Seemed pretty straight forward, nothing due, just informational.

Cool, good for you.   These returns are not hard, and they can be a real nice source of revenue.

Tom
Modesto, CA