Complex Gift Reporting on Form 709: GRATs, Business Interests, Crummey Trusts, CLTs and CRTs, QPRTs

Generally speaking, gifts to trusts are not present interest gifts and do not qualify for the annual exclusion. However, with proper reporting, transfers to Crummey trusts can be eligible as present interest gifts. Transfers to GRATs may not appear to require gift reporting if the remainder value of this gift is zero, however, correctly reporting and disclosing this transfer starts the statute of limitations running on IRS review of the transfer. With split interest gifts such as CLTs, CRTs, and QPRTs, there is normally a component of the transfer that is considered a gift, requiring 709 reporting. And gifting of privately held business interests is also complex.

No aspect of gift tax reporting is simple, but one of the most confusing elements is deciding whether to apply GST exemption to a gift and if so how to report it properly. Once determined, the choice must be appropriately disclosed and included with Form 709.

Simply filing Form 709, Gift Tax Return, may not be enough. Preparers must meet adequate disclosure requirements to toll the statute and prevent revaluation of completed gifts.

Listen as our panel of gift tax return experts walks you through the actual preparation of Form 709, Gift Tax Return, for common but complex gratuitous transfers.

I. Overview

II. Gifts to Crummey trusts

III. Gifts of privately held business interests

IV. Transfers to GRATs

V. Gifts to QPRTs

VI. Gifts to charitable trusts (CRTs and CLTs)

VII. GST exemption allocations for trust gifting

VIII. Other reporting issues

IV. Adequate disclosure

The panel will review these and other critical issues:

• Where and how to report transfers to Crummey trusts, GRATs, QPRTs, CLTs, and CRTs on Form 709?
• What are the reporting considerations for the transfer of a business interest?
• How is a GST election disclosed on a gift tax return and what are best practices for making disclosures?
• What are best practices to ensure adequate disclosure compliance?

Learning Objectives

After completing this course, you will be able to:

• Distinguish various types of charitable trusts
• Identify direct and indirect skips
• Verify that gifts are adequately disclosed
• Determine the appropriate GST allocations
• Establish that gifts to Crummey trusts, GRATs, CLTs, and CRTs are correctly reported on Form 709
• Decide when to apply the GST exemption to a gift

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite:

  Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of estate, gift and trust taxation including various trusts types, the unified credit, and portability.

  
  

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).