Gift Tax Fundamentals: Split Gifts, Skip Persons, Front-Loaded 529 Gifts, SCINs, Crummey Powers, Preparing Form 709

Often Form 709 preparation is handed over to seasoned tax professionals because they are adept at preparing 1040s, their client has made a taxable gift, or there is no separate trust and estate staff to prepare these returns. Gift tax considerations are complicated. Basic concepts include understanding the interplay of the unified exemption ($11.4 million in 2019) with the estate tax, the annual exclusion of $15,000, which allows a gift to escape a required tax return filing, and the difference between direct and indirect skips. Practitioners must be able to advise clients on the consequences of making gifts and the opportunity to avoid gift tax by properly making gifts for medical expenses and education.

People regularly make gifts requiring the preparation of Form 709. These may include front-loaded Sec 529 contributions and split gifts. Once basic concepts are understood, Form 709 returns can be properly prepared and filed.

Listen as our panel of experts explains the fundamental of gift tax reporting, including how and when to file split gift returns, returns involving life insurance premiums, Crummey notifications, and when to file returns even if gifts are less than the annual exemption.

1. Transfers by gift
2. The lifetime exemption
3. The annual exclusion
4. Educational, medical, and charitable gifts
5. Skip and non-skip persons
6. Filing requirements
7. Filing when not required
8. Reporting common gifts
9. Life insurance
10. Crummey powers
11. Front-loaded Section 529 contributions
12. Splitting gifts
13. Preparing Form 709

The panel will review these and other important issues:

• What is a taxable gift?
• What is a reportable gift?
• When should Form 709 be filed, even if not required?
• What are Crummey powers?
• How to prepare Form 709 for common gifts

Learning Objectives

After completing this course, you will be able to:

• Identify transfers subject to gift tax
• Recognize when Form 709 is required to be filed
• Determine when Form 709 should be submitted, even if not required
• Distinguish between reportable and non-reportable gifts

• 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 pass-through taxation, including taxation of partnerships, S corporations and sole proprietorships, qualified business income, net operating losses and loss limitations; familiarity with net operating loss carry-backs, carry-forwards and carried interests.

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).