Corporations and Partnerships Estates and Trusts

709 United States Gift (and Generation-Skipping Transfer) Tax Return Department of the Treasury Internal Revenue Service (For gifts made during calendar year 2013) Form OMB No. 1545-0020 Information about Form 709 and its separate instructions is at www.irs.gov/form709. 2013 See instructions. 1 Donor's first name and middle initial 2 Donor's last name 3 Donor's social security number 5 Legal residence (domicile) 6 City or town, state or province, country, and ZIP or foreign postal code Part 1General Information 4 Address (number, street, and apartment number) 7 Citizenship (see instructions) and enter date of death , If the donor died during the year, check here 11a b Have you (the donor) previously filed a Form 709 (or 709-A) for any other year? If "No," skip line 11b Has your address changed since you last filed Form 709 (or 709-A)? . . . . . . . . . 12 13 Name of consenting spouse 15 16 17 18 Were you married to one another during the entire calendar year? (see instructions) . . . . . . . . If 15 is \"No,\" check whether married divorced or widowed/deceased, and give date (see instructions) Will a gift tax return for this year be filed by your spouse? (If \"Yes,\" mail both returns in the same envelope.) . No Gifts by husband or wife to third parties. Do you consent to have the gifts (including generation-skipping transfers) made by you and by your spouse to third parties during the calendar year considered as made one-half by each of you? (see instructions.) (If the answer is \"Yes,\" the following information must be furnished and your spouse must sign the consent shown below. If the answer is \"No,\" skip lines 13-18.) . . . . . . . . . . . . . . . . . . . . . If you extended the time to file this Form 709, check here Enter the total number of donees listed on Schedule A. Count each person only once. . . . . . . . . . . . . . . . . . . . . Consent of Spouse. I consent to have the gifts (and generation-skipping transfers) made by me and by my spouse to third parties during the calendar year considered as made one-half by each of us. We are both aware of the joint and several liability for tax created by the execution of this consent. Date Have you applied a DSUE amount received from a predeceased spouse to a gift or gifts reported on this or a previous Form 709? If \"Yes,\" complete Schedule C . . . . . . . . . . . . . . . . . . . . . . . . . . 19 1 Enter the amount from Schedule A, Part 4, line 11 . . . . . . 1 2 3 4 Enter the amount from Schedule B, line 3 . . . . . . . . . . . . . Total taxable gifts. Add lines 1 and 2 . . . . . . . . . . . . . . . Tax computed on amount on line 3 (see Table for Computing Gift Tax in instructions) . . . . . . . . . . . . 2 3 4 5 6 Part 2Tax Computation . . 14 SSN Consenting spouse's signature Attach check or money order here. Yes 8 9 10 Tax computed on amount on line 2 (see Table for Computing Gift Tax in instructions) Balance. Subtract line 5 from line 4 . . . . . . . . . . . . . . . . . . . . . . . 5 6 7 Applicable credit amount. If donor has DSUE amount from predeceased spouse(s), enter amount from Schedule C, line 4; otherwise, see instructions . . . . . . . . . . . . . . 7 8 9 Enter the applicable credit against tax allowable for all prior periods (from Sch. B, line 1, col. C) Balance. Subtract line 8 from line 7. Do not enter less than zero . . . . . . . . . . 8 9 . . . . . . . . . . . 10 Enter 20% (.20) of the amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977 (see instructions) . . . . . . . . . . . . . . 11 Balance. Subtract line 10 from line 9. Do not enter less than zero 12 13 14 Applicable credit. Enter the smaller of line 6 or line 11 . Credit for foreign gift taxes (see instructions) . . . Total credits. Add lines 12 and 13 . . . . . . . . . . . . . . . . . 10 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 13 14 15 16 17 Balance. Subtract line 14 from line 6. Do not enter less than zero . . . Generation-skipping transfer taxes (from Schedule D, Part 3, col. H, Total) . Total tax. Add lines 15 and 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 16 17 18 19 20 Gift and generation-skipping transfer taxes prepaid with extension of time to file . If line 18 is less than line 17, enter balance due (see instructions) . . . . . If line 18 is greater than line 17, enter amount to be refunded . . . . . . . . . . . . . . . . . . . . . 18 19 20 Sign Here . . . . . . . . . Under penalties of perjury, I declare that I have examined this return, including any accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than donor) is based on all information of which preparer has any knowledge. May the IRS discuss this return with the preparer shown below (see instructions)? Yes No Date Signature of donor Paid Preparer Use Only Print/Type preparer's name Preparer's signature Firm's name Firm's address For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see the instructions for this form. Date Check if self-employed PTIN Firm's EIN Phone no. Cat. No. 16783M Form 709 (2013) Page 2 Form 709 (2013) SCHEDULE A A Computation of Taxable Gifts (Including transfers in trust) (see instructions) Does the value of any item listed on Schedule A reflect any valuation discount? If \"Yes,\" attach explanation B . . . . . . Yes No Check here if you elect under section 529(c)(2)(B) to treat any transfers made this year to a qualified tuition program as made ratably over a 5-year period beginning this year. See instructions. Attach explanation. Part 1Gifts Subject Only to Gift Tax. Gifts less political organization, medical, and educational exclusions. (see instructions) A Item number B Donee's name and address Relationship to donor (if any) Description of gift If the gift was of securities, give CUSIP no. If closely held entity, give EIN D Donor's adjusted basis of gift C E Date of gift G For split gifts, enter 1/2 of column F F Value at date of gift H Net transfer (subtract col. G from col. F) Gifts made by spouse complete only if you are splitting gifts with your spouse and he/she also made gifts. Total of Part 1. Add amounts from Part 1, column H . . . . . . . . . . . . . . . . . . . . . . Part 2Direct Skips. Gifts that are direct skips and are subject to both gift tax and generation-skipping transfer tax. You must list the gifts in chronological order. A Item number B Donee's name and address Relationship to donor (if any) Description of gift If the gift was of securities, give CUSIP no. If closely held entity, give EIN C 2632(b) election out D Donor's adjusted basis of gift E Date of gift G For split gifts, enter 1/2 of column F F Value at date of gift H Net transfer (subtract col. G from col. F) Gifts made by spouse complete only if you are splitting gifts with your spouse and he/she also made gifts. Total of Part 2. Add amounts from Part 2, column H . . . . . . . . . . . . . . . . . . . . . . Part 3Indirect Skips. Gifts to trusts that are currently subject to gift tax and may later be subject to generation-skipping transfer tax. You must list these gifts in chronological order. A Item number B Donee's name and address Relationship to donor (if any) Description of gift If the gift was of securities, give CUSIP no. If closely held entity, give EIN C 2632(c) election D Donor's adjusted basis of gift E Date of gift G For split gifts, enter 1/2 of column F F Value at date of gift H Net transfer (subtract col. G from col. F) Gifts made by spouse complete only if you are splitting gifts with your spouse and he/she also made gifts. Total of Part 3. Add amounts from Part 3, column H . . (If more space is needed, attach additional statements.) . . . . . . . . . . . . . . . . . . . . Form 709 (2013) Page 3 Form 709 (2013) Part 4Taxable Gift Reconciliation 1 2 3 Total value of gifts of donor. Add totals from column H of Parts 1, 2, and 3 . Total annual exclusions for gifts listed on line 1 (see instructions) . . . . Total included amount of gifts. Subtract line 2 from line 1 . . . . . . . . . Deductions (see instructions) 4 Gifts of interests to spouse for which a marital deduction will be claimed, based on item numbers of Schedule A . . 5 6 7 8 9 10 11 Exclusions attributable to gifts on line 4 . . Marital deduction. Subtract line 5 from line 4 . Charitable deduction, based on item nos. . . . . . . . . . . . . . . . . . . less exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 3 . . . . . . . . 8 9 10 4 5 6 7 Total deductions. Add lines 6 and 7 . . . . . . . . . . . . . . . . . . . Subtract line 8 from line 3 . . . . . . . . . . . . . . . . . . . . . . Generation-skipping transfer taxes payable with this Form 709 (from Schedule D, Part 3, col. H, Total) Taxable gifts. Add lines 9 and 10. Enter here and on page 1, Part 2Tax Computation, line 1 . . 11 Terminable Interest (QTIP) Marital Deduction. (see instructions for Schedule A, Part 4, line 4) If a trust (or other property) meets the requirements of qualified terminable interest property under section 2523(f), and: a. The trust (or other property) is listed on Schedule A, and b. The value of the trust (or other property) is entered in whole or in part as a deduction on Schedule A, Part 4, line 4, then the donor shall be deemed to have made an election to have such trust (or other property) treated as qualified terminable interest property under section 2523(f). If less than the entire value of the trust (or other property) that the donor has included in Parts 1 and 3 of Schedule A is entered as a deduction on line 4, the donor shall be considered to have made an election only as to a fraction of the trust (or other property). The numerator of this fraction is equal to the amount of the trust (or other property) deducted on Schedule A, Part 4, line 6. The denominator is equal to the total value of the trust (or other property) listed in Parts 1 and 3 of Schedule A. If you make the QTIP election, the terminable interest property involved will be included in your spouse's gross estate upon his or her death (section 2044). See instructions for line 4 of Schedule A. If your spouse disposes (by gift or otherwise) of all or part of the qualifying life income interest, he or she will be considered to have made a transfer of the entire property that is subject to the gift tax. See Transfer of Certain Life Estates Received From Spouse in the instructions. 12 Election Out of QTIP Treatment of Annuities Check here if you elect under section 2523(f)(6) not to treat as qualified terminable interest property any joint and survivor annuities that are reported on Schedule A and would otherwise be treated as qualified terminable interest property under section 2523(f). See instructions. Enter the item numbers from Schedule A for the annuities for which you are making this election SCHEDULE B Gifts From Prior Periods If you answered \"Yes,\" on line 11a of page 1, Part 1, see the instructions for completing Schedule B. If you answered \"No,\" skip to the Tax Computation on page 1 (or Schedules C or D, if applicable). Complete Schedule A before beginning Schedule B. See instructions for recalculation of the column C amounts. Attach calculations. A Calendar year or calendar quarter (see instructions) C Amount of applicable credit (unified credit) against gift tax for periods after December 31, 1976 B Internal Revenue office where prior return was filed D Amount of specific exemption for prior periods ending before January 1, 1977 1 Totals for prior periods 2 3 Amount, if any, by which total specific exemption, line 1, column D is more than $30,000 . . . . . . Total amount of taxable gifts for prior periods. Add amount on line 1, column E and amount, if any, on line 2. Enter here and on page 1, Part 2Tax Computation, line 2 . . . . . . . . . . . . . . . . . . . . . . . (If more space is needed, attach additional statements.) . . . . E Amount of taxable gifts 1 2 3 Form 709 (2013) Page 4 Form 709 (2013) SCHEDULE C Deceased Spousal Unused Exclusion (DSUE) Amount Provide the following information to determine the DSUE amount and applicable credit received from prior spouses. Complete Schedule A before beginning Schedule C. A Name of Deceased Spouse (dates of death after B Date of Death C Portability Election Made? December 31, 2010 only) Yes D If \"Yes,\" DSUE Amount Received from Spouse No E F DSUE Amount Applied Date of Gift(s) by Donor to Lifetime (enter as mm/dd/yy Gifts (list current and for Part 1 and as prior gifts) yyyy for Part 2) Part 1DSUE RECEIVED FROM LAST DECEASED SPOUSE Part 2DSUE RECEIVED FROM PREDECEASED SPOUSE(S) TOTAL (for all DSUE amounts applied for Part 1 and Part 2) 1 2 3 Donor's basic exclusion amount (see instructions) Total from column E, Parts 1 and 2 . . . . . Add lines 1 and 2 . . . . . . . . . . 4 Applicable credit on amount in line 3 (See Table for Computing Gift Tax in the instructions). Enter here and on line 7, Part 2Tax Computation . . . . . . . . . . . . . . . . . . . . . SCHEDULE D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Computation of Generation-Skipping Transfer Tax . . . . . . . . . . . . . . . . . . 1 2 3 4 Note. Inter vivos direct skips that are completely excluded by the GST exemption must still be fully reported (including value and exemptions claimed) on Schedule D. Part 1Generation-Skipping Transfers A Item No. (from Schedule A, Part 2, col. A) B Value (from Schedule A, Part 2, col. H) C Nontaxable Portion of Transfer D Net Transfer (subtract col. C from col. B) Gifts made by spouse (for gift splitting only) (If more space is needed, attach additional statements.) Form 709 (2013) Page 5 Form 709 (2013) Part 2GST Exemption Reconciliation (Section 2631) and Section 2652(a)(3) Election Check here if you are making a section 2652(a)(3) (special QTIP) election (see instructions) Enter the item numbers from Schedule A of the gifts for which you are making this election 1 Maximum allowable exemption (see instructions) . . . . . . . . . . . . . . . . . . . 1 2 Total exemption used for periods before filing this return . . . . . . . . . . . . . . . . 2 3 Exemption available for this return. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . 3 4 Exemption claimed on this return from Part 3, column C total, below . . . . . . . . . . . . . . 4 5 6 Automatic allocation of exemption to transfers reported on Schedule A, Part 3 (see instructions) . . . . . . Exemption allocated to transfers not shown on line 4 or 5, above. You must attach a \"Notice of Allocation.\" (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 7 Add lines 4, 5, and 6 . . . . . . . . . . . . . . . . 7 8 Exemption available for future transfers. Subtract line 7 from line 3 . . . . . . . . . . . . . . 8 . . . . . . . . . . . . . 6 Part 3Tax Computation A Item No. (from Schedule D, Part 1) B Net Transfer (from Schedule D, Part 1, col. D) C GST Exemption Allocated D Divide col. C by col. B E Inclusion Ratio (Subtract col. D from 1.000) F Maximum Estate Tax Rate G Applicable Rate (multiply col. E by col. F) H Generation-Skipping Transfer Tax (multiply col. B by col. G) Gifts made by spouse (for gift splitting only) Total exemption claimed. Enter here and on Part 2, line 4, above. May not exceed Part 2, line 3, above . . . . . . . Total generation-skipping transfer tax. Enter here; on page 3, Schedule A, Part 4, line 10; and on page 1, Part 2Tax Computation, line 16 . . . . . . . . . . . . . . (If more space is needed, attach additional statements.) Form 709 (2013) 709 United States Gift (and Generation-Skipping Transfer) Tax Return Department of the Treasury Internal Revenue Service (For gifts made during calendar year 2013) Form OMB No. 1545-0020 Information about Form 709 and its separate instructions is at www.irs.gov/form709. 2013 See instructions. 1 Donor's first name and middle initial 2 Donor's last name 3 Donor's social security number 5 Legal residence (domicile) 6 City or town, state or province, country, and ZIP or foreign postal code Part 1General Information 4 Address (number, street, and apartment number) 7 Citizenship (see instructions) and enter date of death , If the donor died during the year, check here 11a b Have you (the donor) previously filed a Form 709 (or 709-A) for any other year? If "No," skip line 11b Has your address changed since you last filed Form 709 (or 709-A)? . . . . . . . . . 12 13 Name of consenting spouse 15 16 17 18 Were you married to one another during the entire calendar year? (see instructions) . . . . . . . . If 15 is \"No,\" check whether married divorced or widowed/deceased, and give date (see instructions) Will a gift tax return for this year be filed by your spouse? (If \"Yes,\" mail both returns in the same envelope.) . No Gifts by husband or wife to third parties. Do you consent to have the gifts (including generation-skipping transfers) made by you and by your spouse to third parties during the calendar year considered as made one-half by each of you? (see instructions.) (If the answer is \"Yes,\" the following information must be furnished and your spouse must sign the consent shown below. If the answer is \"No,\" skip lines 13-18.) . . . . . . . . . . . . . . . . . . . . . If you extended the time to file this Form 709, check here Enter the total number of donees listed on Schedule A. Count each person only once. . . . . . . . . . . . . . . . . . . . . Consent of Spouse. I consent to have the gifts (and generation-skipping transfers) made by me and by my spouse to third parties during the calendar year considered as made one-half by each of us. We are both aware of the joint and several liability for tax created by the execution of this consent. Date Have you applied a DSUE amount received from a predeceased spouse to a gift or gifts reported on this or a previous Form 709? If \"Yes,\" complete Schedule C . . . . . . . . . . . . . . . . . . . . . . . . . . 19 1 Enter the amount from Schedule A, Part 4, line 11 . . . . . . 1 2 3 4 Enter the amount from Schedule B, line 3 . . . . . . . . . . . . . Total taxable gifts. Add lines 1 and 2 . . . . . . . . . . . . . . . Tax computed on amount on line 3 (see Table for Computing Gift Tax in instructions) . . . . . . . . . . . . 2 3 4 5 6 Part 2Tax Computation . . 14 SSN Consenting spouse's signature Attach check or money order here. Yes 8 9 10 Tax computed on amount on line 2 (see Table for Computing Gift Tax in instructions) Balance. Subtract line 5 from line 4 . . . . . . . . . . . . . . . . . . . . . . . 5 6 7 Applicable credit amount. If donor has DSUE amount from predeceased spouse(s), enter amount from Schedule C, line 4; otherwise, see instructions . . . . . . . . . . . . . . 7 8 9 Enter the applicable credit against tax allowable for all prior periods (from Sch. B, line 1, col. C) Balance. Subtract line 8 from line 7. Do not enter less than zero . . . . . . . . . . 8 9 . . . . . . . . . . . 10 Enter 20% (.20) of the amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977 (see instructions) . . . . . . . . . . . . . . 11 Balance. Subtract line 10 from line 9. Do not enter less than zero 12 13 14 Applicable credit. Enter the smaller of line 6 or line 11 . Credit for foreign gift taxes (see instructions) . . . Total credits. Add lines 12 and 13 . . . . . . . . . . . . . . . . . 10 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 13 14 15 16 17 Balance. Subtract line 14 from line 6. Do not enter less than zero . . . Generation-skipping transfer taxes (from Schedule D, Part 3, col. H, Total) . Total tax. Add lines 15 and 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 16 17 18 19 20 Gift and generation-skipping transfer taxes prepaid with extension of time to file . If line 18 is less than line 17, enter balance due (see instructions) . . . . . If line 18 is greater than line 17, enter amount to be refunded . . . . . . . . . . . . . . . . . . . . . 18 19 20 Sign Here . . . . . . . . . Under penalties of perjury, I declare that I have examined this return, including any accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than donor) is based on all information of which preparer has any knowledge. May the IRS discuss this return with the preparer shown below (see instructions)? Yes No Date Signature of donor Paid Preparer Use Only Print/Type preparer's name Preparer's signature Firm's name Firm's address For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see the instructions for this form. Date Check if self-employed PTIN Firm's EIN Phone no. Cat. No. 16783M Form 709 (2013) Page 2 Form 709 (2013) SCHEDULE A A Computation of Taxable Gifts (Including transfers in trust) (see instructions) Does the value of any item listed on Schedule A reflect any valuation discount? If \"Yes,\" attach explanation B . . . . . . Yes No Check here if you elect under section 529(c)(2)(B) to treat any transfers made this year to a qualified tuition program as made ratably over a 5-year period beginning this year. See instructions. Attach explanation. Part 1Gifts Subject Only to Gift Tax. Gifts less political organization, medical, and educational exclusions. (see instructions) A Item number B Donee's name and address Relationship to donor (if any) Description of gift If the gift was of securities, give CUSIP no. If closely held entity, give EIN D Donor's adjusted basis of gift C E Date of gift G For split gifts, enter 1/2 of column F F Value at date of gift H Net transfer (subtract col. G from col. F) Gifts made by spouse complete only if you are splitting gifts with your spouse and he/she also made gifts. Total of Part 1. Add amounts from Part 1, column H . . . . . . . . . . . . . . . . . . . . . . Part 2Direct Skips. Gifts that are direct skips and are subject to both gift tax and generation-skipping transfer tax. You must list the gifts in chronological order. A Item number B Donee's name and address Relationship to donor (if any) Description of gift If the gift was of securities, give CUSIP no. If closely held entity, give EIN C 2632(b) election out D Donor's adjusted basis of gift E Date of gift G For split gifts, enter 1/2 of column F F Value at date of gift H Net transfer (subtract col. G from col. F) Gifts made by spouse complete only if you are splitting gifts with your spouse and he/she also made gifts. Total of Part 2. Add amounts from Part 2, column H . . . . . . . . . . . . . . . . . . . . . . Part 3Indirect Skips. Gifts to trusts that are currently subject to gift tax and may later be subject to generation-skipping transfer tax. You must list these gifts in chronological order. A Item number B Donee's name and address Relationship to donor (if any) Description of gift If the gift was of securities, give CUSIP no. If closely held entity, give EIN C 2632(c) election D Donor's adjusted basis of gift E Date of gift G For split gifts, enter 1/2 of column F F Value at date of gift H Net transfer (subtract col. G from col. F) Gifts made by spouse complete only if you are splitting gifts with your spouse and he/she also made gifts. Total of Part 3. Add amounts from Part 3, column H . . (If more space is needed, attach additional statements.) . . . . . . . . . . . . . . . . . . . . Form 709 (2013) Page 3 Form 709 (2013) Part 4Taxable Gift Reconciliation 1 2 3 Total value of gifts of donor. Add totals from column H of Parts 1, 2, and 3 . Total annual exclusions for gifts listed on line 1 (see instructions) . . . . Total included amount of gifts. Subtract line 2 from line 1 . . . . . . . . . Deductions (see instructions) 4 Gifts of interests to spouse for which a marital deduction will be claimed, based on item numbers of Schedule A . . 5 6 7 8 9 10 11 Exclusions attributable to gifts on line 4 . . Marital deduction. Subtract line 5 from line 4 . Charitable deduction, based on item nos. . . . . . . . . . . . . . . . . . . less exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 3 . . . . . . . . 8 9 10 4 5 6 7 Total deductions. Add lines 6 and 7 . . . . . . . . . . . . . . . . . . . Subtract line 8 from line 3 . . . . . . . . . . . . . . . . . . . . . . Generation-skipping transfer taxes payable with this Form 709 (from Schedule D, Part 3, col. H, Total) Taxable gifts. Add lines 9 and 10. Enter here and on page 1, Part 2Tax Computation, line 1 . . 11 Terminable Interest (QTIP) Marital Deduction. (see instructions for Schedule A, Part 4, line 4) If a trust (or other property) meets the requirements of qualified terminable interest property under section 2523(f), and: a. The trust (or other property) is listed on Schedule A, and b. The value of the trust (or other property) is entered in whole or in part as a deduction on Schedule A, Part 4, line 4, then the donor shall be deemed to have made an election to have such trust (or other property) treated as qualified terminable interest property under section 2523(f). If less than the entire value of the trust (or other property) that the donor has included in Parts 1 and 3 of Schedule A is entered as a deduction on line 4, the donor shall be considered to have made an election only as to a fraction of the trust (or other property). The numerator of this fraction is equal to the amount of the trust (or other property) deducted on Schedule A, Part 4, line 6. The denominator is equal to the total value of the trust (or other property) listed in Parts 1 and 3 of Schedule A. If you make the QTIP election, the terminable interest property involved will be included in your spouse's gross estate upon his or her death (section 2044). See instructions for line 4 of Schedule A. If your spouse disposes (by gift or otherwise) of all or part of the qualifying life income interest, he or she will be considered to have made a transfer of the entire property that is subject to the gift tax. See Transfer of Certain Life Estates Received From Spouse in the instructions. 12 Election Out of QTIP Treatment of Annuities Check here if you elect under section 2523(f)(6) not to treat as qualified terminable interest property any joint and survivor annuities that are reported on Schedule A and would otherwise be treated as qualified terminable interest property under section 2523(f). See instructions. Enter the item numbers from Schedule A for the annuities for which you are making this election SCHEDULE B Gifts From Prior Periods If you answered \"Yes,\" on line 11a of page 1, Part 1, see the instructions for completing Schedule B. If you answered \"No,\" skip to the Tax Computation on page 1 (or Schedules C or D, if applicable). Complete Schedule A before beginning Schedule B. See instructions for recalculation of the column C amounts. Attach calculations. A Calendar year or calendar quarter (see instructions) C Amount of applicable credit (unified credit) against gift tax for periods after December 31, 1976 B Internal Revenue office where prior return was filed D Amount of specific exemption for prior periods ending before January 1, 1977 1 Totals for prior periods 2 3 Amount, if any, by which total specific exemption, line 1, column D is more than $30,000 . . . . . . Total amount of taxable gifts for prior periods. Add amount on line 1, column E and amount, if any, on line 2. Enter here and on page 1, Part 2Tax Computation, line 2 . . . . . . . . . . . . . . . . . . . . . . . (If more space is needed, attach additional statements.) . . . . E Amount of taxable gifts 1 2 3 Form 709 (2013) Page 4 Form 709 (2013) SCHEDULE C Deceased Spousal Unused Exclusion (DSUE) Amount Provide the following information to determine the DSUE amount and applicable credit received from prior spouses. Complete Schedule A before beginning Schedule C. A Name of Deceased Spouse (dates of death after B Date of Death C Portability Election Made? December 31, 2010 only) Yes D If \"Yes,\" DSUE Amount Received from Spouse No E F DSUE Amount Applied Date of Gift(s) by Donor to Lifetime (enter as mm/dd/yy Gifts (list current and for Part 1 and as prior gifts) yyyy for Part 2) Part 1DSUE RECEIVED FROM LAST DECEASED SPOUSE Part 2DSUE RECEIVED FROM PREDECEASED SPOUSE(S) TOTAL (for all DSUE amounts applied for Part 1 and Part 2) 1 2 3 Donor's basic exclusion amount (see instructions) Total from column E, Parts 1 and 2 . . . . . Add lines 1 and 2 . . . . . . . . . . 4 Applicable credit on amount in line 3 (See Table for Computing Gift Tax in the instructions). Enter here and on line 7, Part 2Tax Computation . . . . . . . . . . . . . . . . . . . . . SCHEDULE D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Computation of Generation-Skipping Transfer Tax . . . . . . . . . . . . . . . . . . 1 2 3 4 Note. Inter vivos direct skips that are completely excluded by the GST exemption must still be fully reported (including value and exemptions claimed) on Schedule D. Part 1Generation-Skipping Transfers A Item No. (from Schedule A, Part 2, col. A) B Value (from Schedule A, Part 2, col. H) C Nontaxable Portion of Transfer D Net Transfer (subtract col. C from col. B) Gifts made by spouse (for gift splitting only) (If more space is needed, attach additional statements.) Form 709 (2013) Page 5 Form 709 (2013) Part 2GST Exemption Reconciliation (Section 2631) and Section 2652(a)(3) Election Check here if you are making a section 2652(a)(3) (special QTIP) election (see instructions) Enter the item numbers from Schedule A of the gifts for which you are making this election 1 Maximum allowable exemption (see instructions) . . . . . . . . . . . . . . . . . . . 1 2 Total exemption used for periods before filing this return . . . . . . . . . . . . . . . . 2 3 Exemption available for this return. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . 3 4 Exemption claimed on this return from Part 3, column C total, below . . . . . . . . . . . . . . 4 5 6 Automatic allocation of exemption to transfers reported on Schedule A, Part 3 (see instructions) . . . . . . Exemption allocated to transfers not shown on line 4 or 5, above. You must attach a \"Notice of Allocation.\" (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 7 Add lines 4, 5, and 6 . . . . . . . . . . . . . . . . 7 8 Exemption available for future transfers. Subtract line 7 from line 3 . . . . . . . . . . . . . . 8 . . . . . . . . . . . . . 6 Part 3Tax Computation A Item No. (from Schedule D, Part 1) B Net Transfer (from Schedule D, Part 1, col. D) C GST Exemption Allocated D Divide col. C by col. B E Inclusion Ratio (Subtract col. D from 1.000) F Maximum Estate Tax Rate G Applicable Rate (multiply col. E by col. F) H Generation-Skipping Transfer Tax (multiply col. B by col. G) Gifts made by spouse (for gift splitting only) Total exemption claimed. Enter here and on Part 2, line 4, above. May not exceed Part 2, line 3, above . . . . . . . Total generation-skipping transfer tax. Enter here; on page 3, Schedule A, Part 4, line 10; and on page 1, Part 2Tax Computation, line 16 . . . . . . . . . . . . . . (If more space is needed, attach additional statements.) Form 709 (2013) Problem This is the first of three tax returns that you will be preparing in this course. This first return will assess your ability to properly handle taxable transfers using the 2513 election to split the gifts. If tax software came with your text purchase, or if you have alternate tax software, you may use it to complete this assignment. If not, a fill-in 2013 709 PDF form can be found in Doc Sharing. Remember, you will be submitting (2) 709 forms, one for James A. Polk and one for Ella R. Polk. If you use the fill-in form in Doc Sharing, two forms are already included. All submissions for this assignment MUST be in PDF format. If you choose to use tax software, do not submit the tax software file. Save the tax return in PDF format, with your last name in the filename, and submit the PDF file. #1. James A. And Ella. R. Polk ages 70 and 65 are retired physicians who live at 13319 Taylorcrest street, Houston, Texas 77079. Their three adult children (Benjamin Polk, Michael Polk, and Olivia Turner) are mature and responsible persons. The Polks have heard that the Obama administration has proposed lowering the Federal gift tax exclusion from $5.25 million to $3 million. Although this change may not occur, the Polks feel they should take advantage of the more generous exclusion available under existing law. Thus, in 2013, the Polks make transfers of many of their high value investments. These and other gifts made 2013 are summarized below. Donor Asset Transfer James Ella Condominium located in Conroe (TX) acquired in 1999, $1,800,00 $1,800,000 cost $1.2 million, to Benjamin, Michael, and Olivia as 0 equal tenants in common. Office building, located in Round Rock (TX) built in $2,200,00 $2,200,000 2001, cost $1.8 million, to Benjamin, Michael, and Olivia 0 as equal tenants in common Vacation ranch in Bandera (TX) inherited by James from $2,400,00 -0his father in 1996, value then $900000, to Benjamin, Michael, and Olivia as equal joint tenants with rights of survivorship. Ella used her separate property to reimburse her father $ -0$82,000 (Alan Roberts) for his heart bypass operation Paid for daughter's (Olivia's) wedding to John Turner $20,000 $20,000 James used his separate property to purchase a new $42,000 -0automobile (BMW) as a graduation present ( from medical school) for his favorite niece (Carol Polk) Prepare 2013 gift tax returns (Form 709) for both of the Polks. A 2513 election to split gifts is made. The Polks have made no taxable gifts in prior years. Relevant Social Security numbers are 123-45-6789 (James) and 123-45-6788 (Ella). #2. Natalie Bryan, a widow who lives at 425 Flathead Way, Kalispell, Montana 59901, has three adult children (Daniel Bryan, Amanda Green, and Samantha Cruz). During 2013, Natalie makes the following gifts to the children. To Daniel: Office building in Helena acquired in 2001 at a cost of $800000, current value $1.8 million. To Amanda: Rental cabin in Whitefisjh inherited in 1999 (value $900,00) from her father, current value $1.9 million. To Samantha: Vacation lodge on Flathead Lake acquired in 1995 at a cost of $800,000, current value $1.7 million. Prepare a 2013 gifts tax return ( Form 709) for Natalie (SSN 123-45-6787). Natalie made no taxable gifts in prior years. #3. Harriet C. Harper, age 74, died as a result of an automobile accident on June 6, 2013. At the time of her death, Harriet lived at 1520 Marlin Drive, Clearwater, FL, 33758. She was predeceased by her husband. John W. Harper, who died in 2001. Harriet is survived by her two adult children. Travis Harper and Hannah Baker. Information regarding Harriet's estate is summarized below. John's will established a marital deduction trust with $1 million of assets. Under the terms of the trust, Harriet received a life estate with the remainder passing to their children. (i.e., Travis and Hannah). To obtain a marital deduction for John's estate, his executor made a QTIP election. On June 6, 2013, the trust had a value of $2 million. During 2013, the trust assets are distributed to Travis and Hannah. Harriet owned three insurance policies with Falcon Assurance Companyone on her life and one on the life of each of her children. All policies have a maturity value of $100,00; all name Harriet or her estate as the beneficiary. As of June 6, 2013, the policies on Travis and Hannah each had a value of $40,000. A tract of undeveloped land in Pinellas County (FL) was purchased by Harriet as an investment in 2002 for $300,000. To help finance the purchase, Harriet obtained mortgage funds from Tampa Savings and Loan. As of June 6, 2013, the land was worth $900,000, and Harriet owed $100,000 on the mortgage. Rental beach cottages in Destin (FL) were inherited from John and worth $1 million on June 6, 2013. The cottages had value of $600,000 when John died; his original cost is unknown. A family vacation lodge in Union (SC) was held as joint tenants with right of survivorship in the names of Harriet Harper, Travis Harper, and Hannah Baker. The property was purchased in 2002 for $400,000; $200,000 was provided by Harriet and $100,000 was furnished by each of her children. On June 6, 2013, the lodge was worth $1 million. Harriet's Marlin Drive residence is owned by her. It had a value of $500,000 on June 6, 2013. The accident that fatally injured Harriet was caused by the delivery truck of a national soft drink bottling company. Not only was the truck in disrepair, but the driver was charged with DUI. To avoid the adverse publicity of lawsuit involving the obvious gross negligence, the corporate office offered to settle any claims. After careful deliberation, Harriet's coexecutors (Travis and Hannah) signed a release. In return, the estate received $400,000 in cash plus payment of all medical expenses. Of the medical expenses, the doctors and hospital were paid directly by the building company. The settlement was received by the estate before it was closed and the Form 706 filed. Other assets owned by Harriet as of June 6, 2013 included: Checking account at Dunedin State Bank $ 17,500 State of Georgia bonds (interest accrued to date of death) 105,000 Personal and household effects 60,000 Federal income tax refund receivable (for tax year 2012) 2,000 Liabilities and expenses in connection with the administration of the estate include: Harriet's credit card debt and household bills (e.g., utilities, gardener) $13,000 Federal income tax ( January 1, 2013, to June 6, 2013) 27,000 Funeral expenses 8,000 Attorney's fees 12,000 Accounting fees 10,000 Appraisal fees and court costs 6,000 Unpaid pledge to Clearwater First Methodist Church Building Fund ( paid by the estate during its administration) 20,000 Because Travis and Hannah had experience in handling their father's estate. Harriet's will designated them as co-executors of her estate. The probate of the Estate of Harriet C. harper is completed December 16, 2013. Travis and Hannah are the sole heirs. Prepare an estate tax return (Form 706) for Harriet, In this regard, make the following assumptions. Disregard any request for information that is not available Some deductions require a choice between the income and estate taxes (Form 706 or form 1041) and cannot be deducted twice . Resolve all choices in favor of Form 706. Harriet had made no taxable gifts in prior years. Relevant SSNs Name SSN Harriet Harper 123-45-6781 Travis Harper 123-45-6782 Hannah Baker 123-45-6783