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706 gst


schirallicpa

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I have done the 706 a few times when people have nice clean simple gifts to daughters or sons.  However, this year I have a client that decided to gift his grandchildren (2) $50000 each.  So he has to pay $20000 tax on this??  That just seems crazy.  I just have to confirm this with someone.  Maybe I;m missing something big.  

What is 2632(b) election.

I'm in deeper water than I anticipated.  

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Use Form 709, Gift Tax Return.  The exclusion is $5mil, tax credit $2mil+  The potential tax is applied against the lifetime credit. 

Since this is a generation skip, look at the election https://www.law.cornell.edu/uscode/text/26/2632

I think  with a little reading and the correct form, you will figure it out.  With such generosity, take into account any earlier filed 709's.

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