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Is it necessary to file Form 709 each year for the next 5 years when electing Section 529(c)(2)(B) for a gift of $80,000 in 2021 to a grandchild for superfunding a 529 plan?
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$80,000 for 2021?
The limit is $15,000 for 2021. As such, if that election was made, the $80,000 is spread out "ratably" over the 5 years, so you would have $16,000 per year.
So there definitely would need to be a Gift Tax returns for 2021.
As for the other years, I don't think so (the limit increases to $16,000 for 2022), but I'm not particularly fluent on Gift Tax so perhaps somebody has a more definitive answer. On the other hand, if the giver gave anything else to the recipient in future years (birthday present, etc.), that would go over the limit and a Gift Tax return would be required.
Will the giver ever potentially be subject to Gift or Estate tax? If not, adding it all onto 2021 would be easiest.
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If the "carryover" is the only gift in the next 4 years, no gift tax return required in those years.
If there are other gifts then include this on the subsequent years gift tax returns.
The more I know the more I don’t know.
