Mona would have to report a $5,000 taxable gift on 1RS
Form 709. That $5,000 taxable gift will reduce her current federal estate and gift tax exemption amount to $11,175,000, assuming no other taxable gifts have been made.
When it comes to taxes, anyone can give any other person a gift up to $15,000 in value (money or, say, stocks) in 2018 without filing the gift-tax return IRS
Form 709. So a parent with two children can give each of them -- and even the children's partners -- up to $15,000 this year without having to complete
Form 709.
A taxpayer must recalculate any remaining applicable exclusion amount by (1) using a
Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, an amended
Form 709, or a Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return; (2) writing at the top of the form that the return is "filed pursuant to Notice 2017-15"; and (3) attaching a statement supporting the claim and detailing the taxpayer's recalculation.
On preparing the gift tax return itself, Grimaldi recommended viewing the IRS's instructions for
Form 709 and making a checklist of what materials and information need to be collected.
3.01's scope by entering at the top of Form 706 or
Form 709 "Filed pursuant to Revenue Procedure 2016-49;"
Income Tax Return for Estates and Trusts], not just the
Form 709 [United States Gift (and Generation-Skipping Transfer) Tax Return].
Gift (and Generation-Skipping Transfer) Tax Return,
Form 709 ("709") electing to split the gift of corporate stock to the trust.
If the value is more than $10,000, which it usually is, then
Form 709 has to be filed.
Finally, Estate and Gift Tax Returns and Audits is a guide to the perparation of Form 706, federal estate and generation-skipping transfer tax return, and
Form 709, gift and generation-skipping tax returns.