How to generate Form 709, Gift Tax Return in Lacerte

What's new for tax year 2024:

• Part I, General Information of Form 709 has been reorganized and the address includes foreign address entries.
• Schedule A. Columns for Parts 1, 2 and 3 of Schedule A were reorganized. New columns (k), (l) and (m) with checkbox on parts 1 and 3 was added to identify if gift is a charitable gift, deductible gift to spouse, or 2652(a)(3) election.
• New Form 709-NA. If you are a nonresident not a citizen of the United States and made gifts of tangible property situated in the United States, file Form 709-NA, United States Gift (and Generation-Skipping Transfer) Tax Return of Nonresident Not a Citizen of the United States.
• The annual gift exclusion for 2024 is $18,000.
• The basic credit amount for 2024 is $5,389,800.
• The applicable exclusion amount consists of the basic exclusion amount ($13,610,000 in 2024) and, in the case of a surviving spouse, any unused exclusion amount of 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.

Form 709 is found in the Gift module, which can be accessed by selecting Gift under Tax Type on the Client menu.

If the Gift tax is grayed out, or for additional instructions on installing the tax module, see here.

Follow these instructions to generate Form 709:

1. Add a new client file.
2. In Screen 1, Client Information, enter the Taxpayer Information.
3. Complete the Spouse Information if applicable.
   • If gift splitting, mark the box Gift Splitting.
   • If the spouse will file Form 709, select the box Will File Form 709. This will generate a spouse's Form 709 on the Forms tab.
   • Check the box Married Entire Year if applicable.  If not complete During the year and Date change in above state.
4. Complete the applicable information in the remaining sections (address, contact info).
5. In Screen 2, Donee Information enter the information for the person, trust, or organization receiving the gifts.
6. Enter gift information on gifts given by the taxpayer in Screen 7, Taxpayer's Gifts to flow to the Schedule A.
   • Description (press Ctrl+E to enter the description)
   • Donee Number (Mandatory for items and supplement) - Enter or select the number of the donee to receive this gift.
   • Donor's Adjusted Basis
   • Date of Gift
   • Fair Market Value