Page 6

Line 7 Worksheet (Unified Credit Allowable for Prior Periods) Keep for Your Records Line 7 Worksheet – Tax on Gifts Made After 1976 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) Period Taxable Total Cumulative Tax Tax Based Tax on Maximum Unified Available Credit Tax Payable Gifts for Taxable Taxable Based on on 2011 Gifts for Unified Credit Credit in Allowable for Current the Gifts for Gifts 2011 Rates on Current Credit Allowable Current (Lesser of Period Current Prior Including Rates on Cumulative Period Available in Prior Period Col. (g) (Col. (g) – Period Periods1 Current Gifts Gifts (Col. (f) – for Current Periods4 (Col. (h) – and Col. Col. (k)) Period. from Including Col. (e)) Period Col. (i)) (j)) (Col. (b) + Prior Current (based on Col. (c)) Periods Period 2011 (Col. (c))2 (Col. (d)) rates)3 Pre-1977 1. Total gift taxes payable on gifts made after 1976 (add all amounts in column (l)). 1. 2. Gift taxes paid by the decedent on gifts that qualify for “special treatment.” Enter the amount from Worksheet TG, line 2. 2, column e. 3. Subtract line 2 from 1. 3. 4. Gift tax paid by decedent’s spouse on split gift included on Schedule G. Enter amount from Worksheet TG, 4. line 2, column (f). 5. Add lines 3 and 4. Enter here and on Part 2—Tax Computation, line 7. 5. 1. Column (c): Enter amount from column (d) of the previous row. 2. Column (e): Enter amount from column (f) of the previous row. 3. Column (h): Enter amount from the Table of Unified Credits. (For each row in column (h), subtract 20 percent of any amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977.) 4. Column (i): Enter the sum of column (i) and column (k) from the previous row. You need not file these worksheets with through 2005, and $12,000 for 2006 percent of the amount allowed as a your return but should keep them for through 2008. For 2009, 2010, and specific exemption for gifts made after your records. Worksheet TG—Taxable 2011, the annual exclusion for gifts of September 8, 1976, and before Gifts Reconciliation allows you to present interest is $13,000 per donee. January 1, 1977 (but no more than reconcile the decedent’s lifetime $6,000). How to complete line 7 worksheet taxable gifts to figure totals that will be Column (i). Enter the sum of column (i) Column (a). Beginning with the earliest used for the Line 4 Worksheet and the and column (k) from the previous row. year in which taxable gifts were made, Line 7 Worksheet. Column (j). Subtract the amount in enter the quarter/year of the prior You must have all of the decedent’s column (i) from the amount in column gift(s). gift tax returns (Form 709) before you (h). Column (b). Enter all taxable gifts. complete Worksheet TG—Taxable Column (k). Enter the lesser of column Enter all pre-1977 gifts on the pre-1977 Gifts Reconciliation. The amounts you (g) and column (j) for the current row. row. will enter on Worksheet TG can usually Column (c). Enter the amount from Column (l). Subtract the amount in be derived from the filed returns that column (d) of the previous row. column (k) from the amount in column were subject to tax. However, if any of Column (d). Enter the sum of column (g) to determine any tax due. Enter the returns were audited by the IRS, (b) and column (c) from the current row. result in column (l). you should use the amounts that were Column (e). Enter the amount from Repeat for each year in which finally determined as a result of the column (f) of the previous row. taxable gifts were made. audits. Column (f). Enter the tax based on the amount in column (d) of the current row In addition, you must make a For examples of how to use the Line from Table A — Unified Rate Schedule reasonable inquiry as to the existence 7 Worksheet, see the examples in the above. of any gifts in excess of the annual 2010 Instructions for Form 709, United Column (g). Subtract the amount in exclusion made by the decedent (or on States Gift (and Generation-Skipping column (e) from the amount in column behalf of the decedent under a power Transfer) Tax Return, schedule B, (f) for the current row. of attorney) for which no Forms 709 column C (Unified Credit Allowable for Column (h). Enter the amount from the were filed. Include the value of such Prior Periods). Add a column to the Table of Unified Credits (as gifts in column b of Worksheet TG. The right of column (k) to determine the tax recalculated using 2010 rates). annual exclusion per donee for 1977 payable for the current period (column Note. The entries in each row of through 1981 was $3,000, $10,000 for column (h) must be reduced by 20 (g) minus column (k)). 1981 through 2001, $11,000 for 2002 -6- Part Instructions