Form 709 United States Gift Tax Return. Directions: Prepare a federal gift tax return (Form 709) based on the following information for Wanda Bickford. Use the 2017 Gift Tax forms. Bill agrees to gift split. Facts: Bill and Wanda Bickford are married to each other throughout all the years in question. Bill made no taxable gifts in earlier periods. Wandas previous taxable gifts were $2,000,000 in 1985 and $1,800,000 in 1988. Assume the applicable interest rate for valuing life estates and remainders is 4%. In August 2017, Wanda makes the following gratuitous transfers (theyre real gifts and she didnt receive anything in return): $90,000 in cash to son Billy $26,000 in jewelry to daughter Betsy $32,000 in medical expense payments to Downtown Hospital for medical care of grandson Tim. Remainder interest in vacation cabin to friend Ruth Cain. Wanda (age 60) retains a life estate. The vacation cabin is valued at $200,000 $750,000 in stocks to a bank in trust with all of the income payable semiannually to husband Bill (age 72) for life and remainder payable at Bills death to Jeff Bass, Wandas son from an earlier marriage, or Jeffs estate. Wanda wants to elect the marital deduction. $1,000,000 to the Red Cross Bill made the following transfers in 2017 $100,000 of stock to State University $200,000 cash to UIW $500,000 of land to daughter Betsy 1. Complete Schedule A Part 4 - Taxable Gift Reconciliation