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

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When the donor and spouse elect gift splitting, much of the information you need to prepare each return is the same. UltraTax CS/709 prepares 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 only need to enter information once. The printing process, however, is still done separately.

Data entry

Complete the following to prepare gift tax returns for the donor and spouse when gift splitting is elected.

  1. Open the client and go to the 709 screen in the General folder.
  2. Enter all required donor and spouse information. Be sure to enter X in the Elect gift splitting field.
  3. In the Gift folder, go to the Donee tab.
  4. Enter each gift recipient's name, address, and relationship information.

    Notes

    • Gift recipients include relatives, friends, trusts, and charities.
    • Don't enter a spouse as a gift recipient. The spouse's information entered on the 709 screen is automatically used. The unique number assigned to a spouse is 999 and always appears last in lists of donees.
    • 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.
    • This multiple-unit input screen allows you to add 11 gift recipients. 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 create an additional unit.
  5. If the gift recipient is a charity, enter X in the Charity field.
  6. Go to the Trust screen and enter trust information.
    1. Open the Beneficiary(ies) statement and use the Donee No. column to select each trust beneficiary. If you don't see the name, you need to enter the donee information from steps 3 and 4.
    2. Enter the Percent of Trust Interest for each beneficiary if the percentages are not equal. If you leave it blank the gifts will split equally to the beneficiaries entered.
    3. Enter X in the Remainder Interest column for the applicable beneficiary.
  7. Go to the Gift screen and enter all data and gift information for each gift. Don't include section 529 gifts made to a qualified tuition plan or program; those go on the G529 screen. The following fields are required:
    • Item number
    • Description
    • Date of gift
    • Donee(s), gift division
    • Value at date of gift
  8. In the Given by field, designate who made the gift. Otherwise it will default to the donor. This also determines where the gift information will appear on Schedule A.
  9. If you need to enter more than one gift, click the down arrow on the Gift tab and select Add Unit (or press CTRL+A) to create an additional unit.

Calculate and print each return

Once data entry is complete, creating and printing the donor and spouse return is done separately using the Return or extension to calculate field on the 709 screen in the General folder.

  1. Print the donor return:
    1. In the General folder, go to 709 screen.
    2. Choose in the Return or extension to calculate field.
    3. Go to File and select Print Returns.
    4. Select the copy or copies you'd like to print.
    5. Select Print.
    6. The return calculates using all valid gifts entered on the Gift and/or G529 screens.
  2. Print the spouse return:
    1. In the General folder, go to 709 screen.
    2. Choose 2 in the Return or extension to calculate field.
    3. Go to File and select Print Returns.
    4. Select the copy or copies you'd like to print.
    5. Select Print.
    6. The spouse's return calculates using all valid gifts entered on the Gift and/or G529 screens and reverses where the gifts are reported on Schedule A and Schedule D.

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