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IRS releases 2019 instructions for gift tax returns

On October 29th the IRS released the instructions for Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return. This Form, updated for 2019, has changes that show inflation adjustments as well as new mailing instructions for completed Forms.

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What’s New:

  • The annual gift exclusion for 2019 is $15,000.
  • For gifts made to spouses who are not U.S. citizens, the annual exclusion has increased to $155,000.
  • The top rate for gifts and generation-skipping transfers remains at 40%.
  • The basic credit amount for 2019 is $4,505,800.
  • The applicable exclusion amount consists of the basic exclusion amount ($11,400,000 in 2019) and, in the case of a surviving spouse, any unused exclusion amount from the last deceased spouse (who died after December 31, 2010).
    • The executor of the predeceased spouse’s estate must have elected on a timely and complete Form 706 to allow the donor to use the predeceased spouse’s unused exclusion amount.
  • Beginning in 2019, Form 709 will be filed in Kansas City, Missouri.
    • Amended 709s will be filed in Florence, Kentucky.

Contact your Henry+Horne professional with any Estate & Gift questions today!


Haley Braun