Frank and Nancy's 709 tax return

Begin by reviewing the tax return scenario below. Then, prepare gift tax returns (Form 709) for both of the Johnsons to compute the total taxable gifts (line 3) for Frank and Nancy. Stop with line 3 of page 1, but complete pages 2 and 3 of the return. Links to all applicable forms can be found in the course. Instructions for each form can be found at the Forms, Instructions, \& Publications section of the IRS website. Save the tax returns separately in PDF format, with your last name in the filename, and submit the two PDF files. TAX RETURN SCENARIO Frank R and Nancy M Johnson, ages 70 and 65 , are retired physicians who live at 527 Montpelier Drive, Austin, Texas 78741. Their 3 adult children (Tony Johnson, Kurt Johnson, and Wendy Thompson) are mature and responsible people. The Johnsons have heard that some in Congress have proposed lowering the Federal gift tax exclusion to $5 million. Although this change likely will not occur, the Johnsons feel they should take advantage of the more generous exclusion available under existing law. Thus, the Johnsons make transfers of many of their high value investments. These and other gifts made during 2022 are summarized below: An election to split gifts is made. The Johnsons have made no taxable gifts in prior years. Relevant Social Security numbers are 123-45-6789 (Frank) and 123-45-6788 (Nancy). Remember, you will be submitting (2) 709 forms, one for Frank R. Johnson and one for Nancy M. Johnson