Gifting assets to loved ones is one of the simplest ways of reducing your taxable estate. However, what may not be as simple is determining whether you need to file a federal gift tax return (Form 709) for the year in which those gifts are made. With the April 17 filing deadline approaching, now is the time to find out an answer.
When a Gift Tax Return is Required:
A Form 709 is required if you:
- Made gifts of present interests — such as an outright gift of cash, marketable securities, real estate, other tangible property, or payment of expenses other than qualifying educational or medical expenses (see below) — and the total value of all gifts to any one person exceeded the 2017 annual exclusion amount of $14,000 ($15,000 for 2018),