Question

Details and Rubric Locate the instructions for Form 709 in your course resources and analyze it. Spouses who elect to gift-split cannot file a joint gift tax return. Explain how they must file and any exceptions that may apply.

Answer 1

Answer: Spouses may not file a joint gift tax return. Each individual is responsible for his or her own Form 709.

• You must file a gift tax return to split gifts with your spouse (regardless of their amount) as described in Part 1—General Information.

• If a gift is of community property, it is considered made one-half by each spouse. For example, a gift of $100,000 of community property is considered a gift of $50,000 made by each spouse, and each spouse must file a gift tax return.

• Likewise, each spouse must file a gift tax return if they have made a gift of property held by them as joint tenants or tenants by the entirety.

• Only individuals are required to file gift tax returns. If a trust, estate, partnership, or corporation makes a gift, the individual beneficiaries, partners, or stockholders are considered donors and may be liable for the gift and GST taxes.

• The donor is responsible for paying the gift tax. However, if the donor does not pay the tax, the person receiving the gift may have to pay the tax.

• If a donor dies before filing a return, the donor's executor must file the return.

Who does not need to file.

If you meet all of the following requirements, you are not required to file Form 709.

• You made no gifts during the year to your spouse.

• You did not give more than $14,000 to any one donee.

• All the gifts you made were of present interests.

• Reference: https://www.irs.gov/instructions/i709