Tax Law (Questions About Taxes)/Form 709 Gift Tax Return

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QUESTION: I am trying to find examples and/or forms online to help fill out Schedule A Part 1 involving the gifting of shares of over 125 different stocks to three individual donees (my children).  I am not sure if I need to list the Donee's name and address etc. separately for every security or whether I can just group all the securities together for each donee.   The only example I could find online was from President Obama.

http://www.whitehouse.gov/assets/documents/president_federal_7092.pdf


 Thank you.

ANSWER: Robert,

Thanks for your question.

You need to list each separate gift.  If the 125 different stocks were given at the same time, that constitutes a single gift. So you would just show the total value of the gift to each donee, not the components of the gift.

Hope this helps.

John Stancil, CPA

---------- FOLLOW-UP ----------

QUESTION: Thank you for the quick response, but I am confused.  Don't have I have to list each security and also share lot including the CUSIP and the basis separately?  That is what Schedule A says on Form 709 in column B.  For example I gave shares of IBM with 5 different original purchase dates and each has a different basis.  Since the donee's basis of each lot is the same as the donor, don't I have to list each lot separately? Thank you

ANSWER: I apologize. I gave you an incomplete answer.  

On Schedule A, you can show the summarized numbers as I indicated.  What I failed to type was that you should provide a supplementary sheet indicating the detail for each.

Hope this helps. And again, I apologize.

John Stancil, CPA

---------- FOLLOW-UP ----------

QUESTION: Now I understand!  Do I have to repeat the each donee's name and address 125 times on the supplemental sheet of just this information for each donee one time?   Thanks again.

Answer
No, not at all.  Do something like this:

Date
Joe Smith, Son
Property          Basis     Value
100 Shares XYZ     1000       1500
50 shares ABC      544       1200

I think this gives you the idea.  I hope this formats so you can read it, once hit the send button.  Doing it on an Excel spread sheet would most likely be the easiest.

John

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John Stancil, CPA

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I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at www.mybaldcpa.com. I also offer seminars and consultations to churches and clergy on their tax issues at www.churchtaxsolutions.com Also visit my blog, www.thetaxdocspot.com. I am listed on Tax Connections at https://www.taxconnections.com/profile/John-Stancil/12258973 Prepare and file your own taxes at www.1040stancilcpa.com

Experience

I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

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The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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