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.
- 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!