Entering information for donor and spouse gift tax returns when gift splitting is elected (709)

Alerts and notices

When the donor and spouse elect gift splitting, much of the information you need to prepare each return is the same. UltraTax CS/709 prints the gift tax returns for both spouses from the same client. While various items may go on different lines of each taxpayer's return, you need to enter information only once to make it available for each return.

Use this procedure to prepare gift tax returns for the donor and spouse when gift splitting is elected.

  1. Choose File > Open Client to open the desired client.
  2. Enter all required donor and spouse information on Screen 709 in the General folder. Be sure to enter X in the Elect gift splitting field.
  3. In the Gift folder, click the Screen Donee tab.

    Note: This multiple-unit input screen accommodates data entry for up to 11 gift recipients on each unit of this screen. If you have more than 11 gift recipients, click the down arrow (which appears after you have entered data on this screen) on the Donee tab and select Add Unit (or press CTRL+A) to open an additional unit.

  4. Enter each gift recipient's name, address, and relationship information. Gift recipients include relatives, friends, trusts, and charities. A gift recipient that receives a gift as both an individual and as a trust beneficiary only needs to be entered once. UltraTax CS assigns a unique number to each gift recipient that is used for identification and in the calculation of each gift recipient's annual exclusion. UltraTax CS proformas all information entered on Screen Donee, eliminating the need to re-enter this information in subsequent years.

    Do not enter a spouse as a gift recipient on Screen Donee. The spouse's information is automatically retrieved from the data entered on Screen 709. The unique number assigned to a spouse is 999 and always appears last in lists of donees.

  5. If the gift recipient is a charity, enter X in the Charity field.
  6. Enter trust information on Screen Trust. In the Beneficiary(ies) statement dialog, to select each trust beneficiary, select the donee number associated with the trust beneficiary from the fieldview in the Donee No. column. Also, enter the percentage of each beneficiaries trust interest if the percentages are not equal, and enter X in the Remainder Interest column if applicable to the beneficiary.


    • If the fieldview in the Donee No. column does not list the name you are looking for or "Unavailable - Enter on federal Screen Donee" appears, close the statement dialog and enter the gift recipient's name and information in the next available set of fields on Screen Donee, and then return to this statement dialog. For additional information, see Entering donee and gift information and allocating gifts to donees.
    • If the Percent of Trust Interest field is blank, UltraTax CS defaults to dividing the gift to the trust equally among the beneficiaries entered.
  7. In the Gift folder, click the Gift tab and enter all data and gift information for each gift that is not a section 529 gift (made to a qualified tuition plan / program). Section 529 gifts are entered on Screen G529.

    Note: This multiple-unit input screen accommodates data entry for one gift on each unit of this screen. To enter additional gifts, click the down arrow on the Gift tab and select Add Unit (or press CTRL+A) to open an additional unit.

    For details on entering gift information in the various fields on Screen Gift, press F1 from within any field or see Entering donee and gift information and allocating gifts to donees.

    You must enter data in each of the following fields.

    • Item number, Description, Date of gift, Donee(s), gift division, and Value at date of gift. The gift is not included in the return unless data is present in these fields.
    • In the Given by field, designate who made the gift. By default, UltraTax CS assumes the gift was made by the donor. If the donor made the gift, enter 1 or leave this field blank. If the spouse made the gift, enter 2.

    Note: UltraTax CS prints the gift information on Schedule A, Part 1, 2, or 3, as applicable, based on the information entered as shown in the following table.

    Return to calculate Gifts given by Section of Sch A or Sch D
    1 = Donor 1 = Donor Top
    2 = Spouse Bottom
    2 = Spouse 1 = Donor Bottom
    2 = Spouse Top

    If the donor and spouse agree to split gifts, all gifts made by either spouse must be split. UltraTax CS assumes that one-half of all split gifts are made by the donor and the other half by the spouse. Gifts made from one spouse to the other, or before or after a change in marital status (as appropriate), are not split.

  8. UltraTax CS calculates the return using all valid gifts entered on Screens Gift and/or G529 and by which return you select to calculate. If the Return to calculate field on Screen 709 is blank, or if 1 is entered, this is the donor return.
  9. To calculate the spouse's return, in the General folder, open Screen 709 and enter 2 in the Return to calculate field. UltraTax CS calculates the spouse's return using all valid gifts entered in Screens Gift and/or G529. UltraTax CS automatically reverses where the gifts are reported on Schedule A, Parts 1, 2, and/or 3 and on Schedule D, Parts 1 and 3.