Reporting Generation Skipping Transfers on Form 709
Author: Klaralee R. Charlton
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2026 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
Generation Skipping Transfer (GST) tax layers on top of Gift Tax when lifetime transfers are made to much younger generations or set aside in trust for their benefit. As illustrated by the proliferation of private letter ruling requests, practitioners frequently misunderstand the importance of properly reporting generation skipping transfers and properly allocating the available exemption. This course will review the foundations of GST tax and explain when to elect out of the automatic allocation rules or when Schedule D for Form 709 should be completed. Examples of direct and indirect transfers will be reviewed along with the automatic allocation rules.
Publication Date: July 2024
Topics Covered
- Overview of Gift, Estate & Generation Skipping Transfer Tax
- Direct and Indirect Transfers
- Form 709 Direct Skips
- Taxable Distributions & Terminations
- Form 709 Indirect Skips
- Late GST Exemption Allocations
Learning Objectives
- Describe when GST tax applies in addition to gift tax
- Identify when to file Form 709, Schedule D to allocate the lifetime GST tax exemption
- Recognize how to allocate the GST tax exemption to direct and indirect skips to shelter lifetime transfers
- Identify optimal asset allocation and planning techniques to minimize GST tax
- Identify the the 2024 lifetime gift tax exclusion
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
A general understanding of gift tax will be helpful before taking this course.
Advance Preparation
None
