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How to generate Form 709, Gift Tax Return in Lacerte

SOLVEDby IntuitLacerte Tax94Updated October 12, 2021

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, refer to Installing additional states and modules to Lacerte.

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

If the Skip Person box is selected on Screen 2, Donee Information, the program carries the gift to Schedule A, Part 2. If the GST Trust box is selected on Screen 2, Donee Information, Lacerte carries the gift to Schedule A, Part 3. All other gifts carry to Schedule A, Part 1.

This is the byproduct of the GST exemption.

Per the IRS Form 709 instructions:

"Every donor is allowed a lifetime GST exemption. The amount of the exemption for 20XX is $5,450,000. Enter on line 1 of Part 2 the maximum GST exemption you are allowed. This will not necessarily be the highest indexed amount if you made no generation-skipping transfers during the year of the increase."

For example, if the last GST transfer was in 20XX, the maximum GST exemption would be $1,030,000.

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