ACC 618 1.Gift Tax Form 709 John D. and Rose W. Smith (SSN’s XXXXXXXXXXand XXXXXXXXXXlive at 18...

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ACC 618 1.Gift Tax Form 709 John D. and Rose W. Smith (SSN’s XXXXXXXXXXand XXXXXXXXXXlive at 18 Torchwood Drive, Area 51, AZ XXXXXXXXXXJohn and Rose have been married for many years and own and operate a profitable real estate business. They have two children, Donna (age 20) and Mickey (age 22), both of whom attend college. During 2010, the Smith’s made the following transfers: John paid college expenses of $50,000 in tuition and $12,000 in room and board. To establish financial responsibility with their kids, they gave the money directly to Donna and Mickey.
	
Document Preview: ACC 6181.Gift TaxForm 709John D. and Rose W. Smith (SSN’s XXXXXXXXXXand XXXXXXXXXXlive at 18 Torchwood Drive, Area 51, AZ XXXXXXXXXXJohn and Rose have been married for many years and own and operate a profitable real estate business. They have two children, Donna (age 20) and Mickey (age 22), both of whom attend college. During 2010, the Smith’s made the following transfers:John paid college expenses of $50,000 in tuition and $12,000 in room and board. To establish financial responsibility with their kids, they gave the money directly to Donna and Mickey. Rose reimbursed Martha (Donna’s aunt) for her kidney transplant. Martha is not the dependent of the Smith’s. John used $150,000 in insurance proceeds he received on the death of his grandfather to purchase land in Bad Wolf Bay, listing title as “John, Donna, and Mickey Smith, equal tenants in common.”As a wedding anniversary present, John and Rose each gave $55,000 to purchase an RV for Rose’s parents (Jackie and Ben Tyler).John and Rose each gave a cash contribution of $5,000 to the reelection campaign of the Mayor of Area 51.In creating several trusts in 2008, the Smith’s made taxable gifts of $2million. Consequently, no gift tax was due because of the specific exemption ($1million for each donor spouse). Prepare 2010 gift tax returns (Form 709 for the Smith’s. As in the past, the Smith’s made the Section 2513 election to split the gifts. 2. please complete this case below :Croydon is calendar year, accrual Basis Corporation, MR and Mrs.  Croyden (cash basis taxpayers ) are the sole corporation shareholder . Mr. Croyden is president and Mrs. croyden is vise president of the corporation, Croyden's financial records. Prepared in accordance with GAAP, show the following information for the year,Revenues from sides goods $12,900,000Cost of goods sold( LIFO)(9,260,000)Gross profit 3,640,000Bad debt expense 24,000Administration salaries and wages 612,000State and...

Robert · Accepted Answer

2010 Form 709
Form  709
Department of the Treasury  
Internal Revenue Service 
United States Gift (and Generation-Skipping Transfer) Tax Return 
(For gifts made during calendar year 2010) 
▶ See separate instructions. 
OMB No. 1545-0020
2010 
P
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1  Donor’s first name and middle initial 2  Donor’s last name 3 Donor’s social security number 
4  Address (number, street, and apartment number) 5  Legal residence (domicile) 
6  City, state, and ZIP code 7  Citizenship (see instructions) 
8 If the donor died during the year, check here ▶ and enter date of death , . Yes No 
9 If you extended the time to file this Form 709, check here ▶
10 Enter the total number of donees listed on Schedule A. Count each person only once. ▶
11 a Have you (the donor) previously filed a Form 709 (or 709-A) for any other year? If "No," skip line 11b . . . . . . .
b If the answer to line 11a is "Yes," has your address changed since you last filed Form 709 (or 709-A)? . . . . . . .
12 Gifts by husband or wife to third parties. Do you consent to have the gifts (including generation-skipping transfers) made 
by you and by your spouse to third parties during the calendar year considered as made one-half by each of you? (See 
instructions.) (If the answer is “Yes,” the following information must be furnished and your spouse must sign the consent 
shown below. If the answer is “No,” skip lines 13–18 and go to Schedule A.) . . . . . . . . . . . . .
13 Name of consenting spouse 14 SSN 
15 Were you married to one another during the entire calendar year? (see instructions) . . . . . . . . . . . .
16 If 15 is “No,” check whether married divorced or widowed/deceased, and give date (see instructions) ▶
17 Will a gift tax return for this year be filed by your spouse? (If “Yes,” mail both returns in the same envelope.) . . . . .
18 Consent of Spouse. I consent to have the gifts (and generation-skipping transfers) made by me and by my spouse to third parties during the calendar year 
considered as made one-half by each of us. We are both aware of the joint and several liability for tax created by the execution of this consent. 
Consenting spouse’s signature  ▶ Date ▶
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1 Enter the amount from Schedule A, Part 4, line 11 . . . . . . . . . . . . . . . 1 
2 Enter the amount from Schedule B, line 3 . . . . . . . . . . . . . . . . . 2 
3 Total taxable gifts. Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . 3 
4 Tax computed on amount on line 3 (see Table for Computing Gift Tax in separate instructions) . . 4 
5 Tax computed on amount on line 2 (see Table for Computing Gift Tax in separate instructions) . . 5 
6 Balance. Subtract line 5 from line 4 . . . . . . . . . . . . . . . . . . . 6 
7 Maximum unified credit (nonresident aliens, see instructions) . . . . . . . . . . . . 7 
8 Enter the unified credit against tax allowable for all prior periods (from Sch. B, line 1, col. C) . . 8 
9 Balance. Subtract line 8 from line 7. Do not enter less than zero . . . . . . . . . . . 9 
10 Enter 20% (.20) of the amount allowed as a specific exemption for gifts made after September 8, 
1976, and before January 1, 1977 (see instructions) . . . . . . . . . . . . . . 10 
11 Balance. Subtract line 10 from line 9. Do not enter less than zero . . . . . . . . . . 11 
12 Unified credit. Enter the smaller of line 6 or line 11 . . . . . . . . . . . . . . . 12 
13 Credit for foreign gift taxes (see instructions) . . . . . . . . . . . . . . . . 13 
14 Total credits. Add lines 12 and 13 . . . . . . . . . . . . . . . . . . . . 14 
15 Balance. Subtract line 14 from line 6. Do not enter less than zero . . . . . . . . . . 15 
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16 Generation-skipping transfer taxes (from Schedule C, Part 3, col. H, Total) . . . . . . . . 16 
17 Total tax. Add lines 15 and 16 . . . . . . . . . . . . . . . . . . . . . 17 
18 Gift and generation-skipping transfer taxes prepaid with extension of time to file . . . . . . 18 
19 If line 18 is less than line 17, enter balance due (see instructions) . . . . . . . . . . 19 
20 If line 18 is greater than line 17, enter amount to be refunded . . . . . . . . . . . 20 
Sign  
Here 
Under penalties of perjury, I declare that I have examined this return, including any accompanying schedules and statements, and to the best of my 
knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than donor) is based on all information of which preparer has 
any knowledge. 
May the IRS discuss this return  
with the preparer shown below  
(see instructions)? Yes No ▲
Signature of donor Date
Paid 
Preparer 
Use Only
Print/Type preparer’s name Preparer’s signature Date
Check          if  
self-employed 
PTIN
Firm’s name      ▶
Firm’s address  ▶
Firm's EIN ▶
Phone no. 
For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see the separate instructions for this form. Cat. No. 16783M Form 709 (2010) 
Form 709 (2010) Page 2 
SCHEDULE A Computation of Taxable Gifts (Including transfers in trust) (see instructions) 
A Does the value of any item listed on Schedule A reflect any valuation discount? If “Yes,” attach explanation . . . . . . Yes No 
B ◀  Check here if you elect under section 529(c)(2)(B) to treat any transfers made this year to a qualified tuition program as made ratably over a 
5-year period beginning this year. See instructions. Attach explanation. 
Part 1—Gifts Subject Only to Gift Tax. Gifts less political organization, medical, and educational exclusions. (see instructions) 
A  
Item 
number 
B 
• Donee’s name and address   
• Relationship to donor (if any)   
• Description of gift   
• If the gift was of securities, give CUSIP no.   
• If closely held entity, give EIN 
C D 
Donor’s adjusted 
basis of gift 
E 
Date 
of gift 
F 
Value at 
date of gift 
G 
For split   
gifts, enter 
1/2 of 
column F 
H 
Net transfer 
(subtract  
col. G from 
col. F) 
Gifts made by spouse —complete only if you are splitting gifts with your spouse and he/she also made gifts.             
Total of Part 1. Add amounts from Part 1, column H . . . . . . . . . . . . . . . . . . . . . .  ▶
Part 2—Direct Skips. Gifts that are direct skips and are subject to both gift tax and generation-skipping transfer tax. You must list the gifts in 
chronological order. 
A  
Item 
number 
B 
• Donee’s name and address   
• Relationship to donor (if any)   
• Description of gift   
• If the gift was of securities, give CUSIP no.   
• If closely held entity, give EIN 
C 
2632(b)  
election 
out 
D 
Donor’s adjusted 
basis of gift 
E 
Date 
of gift 
F  
Value at   
date of gift 
G 
For split   
gifts, enter 
1/2 of 
column F 
H 
Net transfer 
(subtract  
col. G from 
col. F) 
Gifts made by spouse —complete only if you are splitting gifts with your spouse and he/she also made gifts.               
Total of Part 2. Add amounts from Part 2, column H . . . . . . . . . . . . . . . . . . . . . . ▶
Part 3—Indirect Skips.

ACC 618 1.Gift Tax Form 709 John D. and Rose W. Smith (SSN’s XXXXXXXXXXand XXXXXXXXXXlive at 18 Torchwood Drive, Area 51, AZ XXXXXXXXXXJohn and Rose have been married for many years and own and...

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