Joan and Seth decided to leave their only son a substantial gift of property and monies. They are not sure what to do to ensure compliance with filing requirements. What form must they fill out after giving a gift?
Explanation
Answer: C - After giving a gift Form 709 must be completed by the donor. The tax return must be filed before April 15 following the year of the gift. A gift tax return must be filed by the donor in any calendar year that he or she gives more than the annual exclusion to the donee, a gift of a future interest, regardless of how small, total gifts exceeding $100,000 to a noncitizen spouse, or when a gift for which spouses elect gift splitting, even if the amount is less than the annual exclusion for each after the split.
