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LEV, thanks for your answer. Now I understand the difference

 
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  • Answered by:LEV
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Customer Question

LEV, thanks for your answer. Now I understand the difference between Lifetime Exemption and Unified Credit! (Basically the former is the gross value of the gifts, and the latter is the annual allowance for the notional tax due on these gifts, calculated at 33% of lifetime gross).

I have done my best to fill out Form 709 for the relevant years. It is easy to an extent, because I only have two "Donees" to list. However I simply cannot understand what to put in to the "Tax Calculation" on page 1 of the form, and so I am stuck.

I would be happy to pay an expert the appropriate hourly rate for advice. Are you a Gift Tax expert, or can you connect me with someone who is?

 

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State/Country relating to question: New York

Already Tried:
I asked the local PwC tax office, but they said they have nobody who specializes in Gift Tax. They said it was similar to Estate Tax, and that is dealt with by Law firms. The last thing I need is an Inheritance Tax lawyer.....!

Submitted: 338 days and 1 hours ago.
Category: Tax
Value: CA$16
Status: CLOSED

Accepted Answer

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Expert:  LEV replied 338 days and 1 hours ago.


LEV :

Hi and welcome to Just Answer!
Can you provide years and gift amounts for each year - I will help you with calculations.

Customer :

LEV, I am off to a meeting now for the next 2-hours. I will log in again at noon EST. If you would like me to send the files, I can't do it via Chat, and so I would appreciate your giving me an e-mail address where I could send this directly.

LEV :

No problen. Take your time.

LEV :

Unfortunately - experts are not allowed to contact via private email.
There is no need for files - we just need years and amounts of taxable gifts in each year.
The taxable gift is the gift above the amount of the annual exclusion.

Customer :

OK, so for 2008 there are two gifts:

LEV :

I do not see you posted any actual information - please verify?

Customer :

Sorry, I should have said Item 15 in my final line.

LEV :

can you clarify - which line? on which form?

Customer :

LEV, I have followed the instructions in Form 709 part 2 to the letter, and it seems to me that Items 15 onwards are all zero. Is this your interpretation?

Customer :

If you agree with that interpretation, I am ready to file my Form 709s for all the relevant years.

LEV :

To either agree or disagree - I need to see your calculations.

Customer :

LEV, how do I send the Calculation to you? Ideally I would like to send you the completed Form 709 for 2008. Is there any way to get such a file to you?

LEV :

Want to upload a file?

1.Click the paperclip icon
2.Click the Browse icon
3.Click the Browse button
4.Select your file and click Open
5.Click OK
6.Click Insert
7.Click Save Changes on this page
Customer :

Full Size Image

LEV :

Are you US citizen or US resident?

Customer :

LEV, I am a UK citizen, a US Green Card holder, and currently Canadian domicile.

LEV :

Do you have Worksheet for Form 709 Schedule B, Column C (Unified Credit Allowable for Prior Periods) - can you attach it here?

Customer :

Full Size Image

LEV :

Taxable gift amounts in column (b) - just want to confirm - was reduced by amounts of annual exclusions - correct?

Customer :

LEV, that's correct - they are net of the individual exclusions.

LEV :

why 2010 gift is missing from schedule B?

LEV :

otherwise - I do not see any issues.

Customer :

LEV, if you are referring to Schedule B of the 2010 Form 709 (the .pdf), then the 2010 gift of 169,600 would not appear here (prior years) but of course appears in the Tax Calculation (on page 1). If you are referring to the calculation page for Schedule B (the Word doc), then I think the 2010 gift appears correctly in column (b).

LEV :

Yes - you are correct - what confused me - you provided form 709 for 2010 but teh worksheet is for 2011, Otherwise you are correct - do not see any issues.

Expert TypeTax Advisor
Category: Tax
Pos. Feedback: 99.2 %
Accepts: 16262
Answered: 5/7/2012

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