Home / EA Course / SEE 1

Gift tax, GST and Form 709

SEE 1 Chapter 24 · IRS outline 6B1, 6B2, 6B3, 6B4, 6B5

The gift tax keeps people from avoiding the estate tax by giving everything away before death. Very few people ever pay it, thanks to the $19,000 annual exclusion and the $13.99 million lifetime exclusion, but many must file Form 709. Rose and Hank want to help their grandchildren, Kofi's grandmother is funding his 529, and Walter gave his son land before he died. Nadia teaches Theo to sort every transfer into three piles: excluded, deducted, or a taxable gift that uses the lifetime exclusion.

In this chapter

1. What is a gift, and the annual exclusion
2. Gift splitting
3. The unified credit and cumulative gifts
4. Effect on the estate tax and the generation-skipping transfer tax
5. Filing Form 709

This chapter has 5 lessons and 66 practice MCQs with explanations, plus flashcards and a recall sheet.

What this chapter covers

• Gift splitting
• annual exclusion
• unified credit
• generation-skipping transfer tax
• filing Form 709

Chapter 23: Estate tax and Form 706 · Chapter 25: International information reporting