Need assistance with Form 709 Gift Tax: How to complete Schedule A, Part 1 for split gifts?

Thanks for the detailed explanation! I'm still confused about one thing though - when you say "list the full fair market value" and then "subtract the amount that represents the other spouse's half" - where exactly on Schedule A, Part 1 does this happen? Is there a specific line for this subtraction? Also, does the property need to be listed twice on each form (once for each spouse's contribution), or just once with some kind of notation?

On Schedule A, Part 1, you'll list the gift property in Column A with its full description. Then in Column D, you'll enter the full fair market value of the property. In Column E is where you'll subtract your spouse's half - this column is specifically for reporting the value of gifts by spouse. So if the property is worth $500,000, you'd show $500,000 in Column D, and $250,000 in Column E. You only need to list the property once on each form. The key is making sure both you and your spouse file separate Form 709s with the gift-splitting consent sections completed and signed. Each return should indicate the gift is being split, and each spouse should sign the consent section of the other spouse's return.

It works by analyzing your specific situation through a question-answer process, then providing detailed guidance. For rental property gifts, it would help you calculate the basis and show exactly where that goes on Form 709, with form-specific instructions that are much clearer than the IRS guide. The advice was spot-on in my experience. I double-checked some points with the IRS's gift tax hotline, and everything matched up. The service uses actual tax professionals who review the AI's work, so you're getting human expertise backed by AI efficiency. My filing was accepted without any issues, and I actually learned enough to handle this year's filing myself!

How does this work exactly? I'm trying to figure out Form 709 for gifting rental property to my daughter. Can it help with calculating the basis and showing me where to put that info on the form? The IRS instructions might as well be written in another language.

Sounds interesting but I'm skeptical. How accurate is the advice? Gift tax has serious consequences if done wrong, and I'd be nervous about trusting AI over a human professional. Did you have any issues with the resulting filing?

It works by analyzing your specific situation through a question-answer process, then providing detailed guidance. For rental property gifts, it would help you calculate the basis and show exactly where that goes on Form 709, with form-specific instructions that are much clearer than the IRS guide. The advice was spot-on in my experience. I double-checked some points with the IRS's gift tax hotline, and everything matched up. The service uses actual tax professionals who review the AI's work, so you're getting human expertise backed by AI efficiency. My filing was accepted without any issues, and I

Wait, how is this even possible? I thought the IRS wait times were just something everyone had to suffer through. Does this actually work for getting technical tax questions answered or just for account issues?

This sounds too good to be true. The IRS has been impossible to reach for years now. I spent 3+ hours on hold last week and never got through. Are you sure this isn't just some service that connects you to "tax experts" who aren't actually IRS employees?

It works by using technology to navigate the IRS phone system and wait in the queue for you. When an agent is about to pick up, you get a call connecting you directly to them. It works for technical tax questions too - I specifically asked about Form 709 Schedule A split gift reporting and got detailed guidance. This isn't connecting you to third-party "experts" - you're speaking with actual IRS employees. That's the whole point. It just saves you from the hold time. I was connected directly to the IRS gift tax department, and the agent identified herself as an IRS employee. I verified by calling back through the normal IRS number later with a follow-up question and reached the same department.

Did you have to include any additional documentation when you filed? I've seen conflicting advice about whether you need to attach a copy of the deed or just describe the property on the form.

You don't need to attach a copy of the deed to Form 709, but you do need to provide a thorough description of the property in Schedule A. I included the full property address, approximate square footage, and a brief description of the property type (single family home, vacant land, etc.). What I did attach was a letter explaining the valuation method I used, along with a copy of the appraisal. While not strictly required, my tax preparer recommended this to support the valuation in case of questions. Better to provide too much documentation than too little when it comes to gifts of real estate.

Is the basis really that important for gift tax purposes? I thought gift tax was calculated based on the fair market value, not the basis. Isn't the basis only relevant for the recipient when they eventually sell the property?

You're right that gift tax is calculated on fair market value, but the IRS still requires you to report the donor's adjusted basis in Column C of Schedule A. This information is used for several purposes - it helps the IRS verify the gift value makes sense, and more importantly, it establishes the carryover basis for the recipient. When someone receives gifted property, they generally take the donor's basis (carryover basis), not the fair market value at the time of gift. So if you paid $200K for property now worth $500K, the recipient's basis for future capital gains calculations would be your $200K basis plus any gift tax paid. The IRS needs this information on the form even though it doesn't affect the current gift tax calculation. It's definitely worth getting the basis right since it affects the recipient's tax situation down the road when they sell.

That spreadsheet idea is brilliant! I wish I had thought of that before diving into the form. One question about the gift splitting election - if we made a small cash gift to our son earlier in the year (like $5,000), does that really need to be reported on the 709 even though it's well under the annual exclusion? I was under the impression that gifts under the exclusion amount didn't need to be reported at all. Also, thanks for the reminder about using the correct year's exclusion amounts. I almost used 2025 numbers by mistake since that's when I'm filing. The actual gift was made in December 2024, so I need the 2024 limits. The deadline stress is definitely getting to me, but seeing everyone's helpful responses here is giving me hope that I can figure this out!