Gift Tax and Skip Person

[Kram BergGold]

I have to prepare a gift tax return for a single person. Children got large gifts well in excess of $13,000. Grandchildren got $13,000 gifts. Do I have to do something different for the grandchildren than the children on the 709 because the grandchildren are skip persons?

[Davc]

Assuming Grandcritters got no other gifts during the year theirs aren't reportable.

[Kram BergGold]

Are you sure?

I thought if there were some reportable gifts (over $13k) you showed all gifts.

[JG EA]

I'm studying this now and haven't gotten too far and so am not sure, but I think you subtract the $13,000 from the amounts you put on the form and so the grandkids would then be zero.

[WhiteOleander]

I thought if there were some reportable gifts (over $13k) you showed all gifts.

Yhis is my understanding also. You report them, but the 13000 gets backed out so it doesn't go against the lifetime limit.

[Kram BergGold]

We are wrong

I just looked it up in TTB page 21-2. It says you don't report the gifts of $13,000 or less just the ones freater than $13,000.

[Roland Slugg]

Gifts at or below the exemption amount are not reported on F-709. Gifts above that level are reported in full, then the exemption amount is deducted elsewhere on the return.