How do U.S. Gift Taxes Work? IRS Form 709 Example

More Form 709 Tutorials:

Have you heard that the U.S. federal government taxes gifts? Believe it or not, you might have to report gifts on a federal tax return if the fair value exceeds certain amounts during the year.

Generally, the donor is required to file all gift tax returns and pay any potential gift taxes. The recipient of the cash or property is not responsible for any gift taxes unless certain exceptions apply (e.g., gifts from non-U.S. persons).

U.S. individuals are allowed an annual gift exclusion of up to $15,000 for the 2020 and 2021 tax years. Any gifts over this amount must be reported.

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DISCLAIMER: The information provided in this video may contain information about tax, financial, and legal topics. Such materials are for informational purposes only and may not reflect the most current developments. These informational materials are not intended and should not be taken as tax, financial, or legal advice. You should contact an advisor to discuss your specific facts and circumstances. Self-help services may not be permitted in all states or jurisdictions. The use of these materials does not create an attorney-client or confidential relationship. This video does not include information about every topic or issue related to these informational materials.

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[ChristaMurray]

Oh my goodness. Life saver! What a monster of form for not having to pay any taxes. 😅Thanks for posting this!

[JammyScribbler]

Thank you. This is fourth video I tried related to form 709 and yours is the first with a simple example. It is just what I was looking for! Good explanations as well.

[marygaus]

SUPER helpful, Jason. I tried reading the IRS documentation and well as other Google sites to understand the difference between the exemption amount and credit amount. Your video made it clear instantly. And I think my accountant failed to deduct the standard annual gift tax exclusion from my total gift amount as you highlight at timestamp 7:50. So thank you for that little jewel. This is the best 11:27 minutes on this topic on YouTube.

[subbuilder]

I gave 700k NJ condo/parking to my son last year. Your video surely relieved my worries. Thanks.

[kelvingrillo]

Thank you sir, I just finished my very first 709 form following your directions. Extremely helpful!

[BillChecovich]

Agreed. First video that actually explained clearly how to fill out the form.

[mikemoore]

I just went solo (after 2 yrs as a preparer)...and my first client for TY2022 will require a 709...first Form 709 for me also. Thank you so much for walking through this.

[watercolorPatCP]

Agreed, You are a wonderful 'teacher'. Other videos by others were not helpful - this was wonderful! Thank you again!

[ronaldfeaster]

Great explanation on how the gift tax and exclusion works.

[kupsingh]

Thank you, Jason! Very informative and helpful tutorial. My eyes were crossing trying to read through the IRS form 709 instructions!

[wdb]

Thank you! Very instructive. And necessary, because the Form 709 instructions are not as clear as they should be.

[corinnesigel]

You saved our grief. Great video, very descriptive. Thank you

[iangshyuan]

This was extremely helpful, just needed something super straightforward and this video definitely helped!

[jaimet.]

Thank you so much! This is my first time filing for this and I was just about to give up and pay for a preparer, but I stumbled upon your video and it made everything so much simpler.

[kenstclair]

This was was a little confused before but this shows how to do it and really pretty easy. Thanks!

[larrylarsen]

Thank You. This was clear and concise and extremely helpful

[blujay]

Clear and to the point. Exactly what I was hoping this would be. Thanks for taking the time and effort.

[suzhang]

Very clear presentation! The example is very helpful! Thank you!

[samplerworker]

This has been really helpful. I was struggling with the difference between exemption amount and credit amount and your explanations answered that for me. Part of the problem for me is that I've seen the 11, 700, 000 referred to as both exemption amount and exclusion amount. Thanks.

[tomsouders]

Thank you for a clear explanation of the basic principles.