Generally, a gift tax return must be filed on Form 709 if any of the following apply to your clients. They:
- Gave gifts to at least one person (other than a spouse) that total more than the annual exclusion for the year.
- Split a gift with a spouse.
- Gave someone (other than a spouse) a gift of a future interest that she cannot actually possess, enjoy, or receive income from until some time in the future.
- Gave his spouse an interest in property that will be ended by some future event.
Your clients would not have to file if they:
- Gave gifts to political organizations or paid someone’s tuition or medical expenses.
- Made the following deductible gifts to charities:
Entire interest in property, if no other interest has been transferred for less than adequate consideration or for other than a charitable use; or
a qualified conservation contribution that is a restriction (granted forever) on the use of real property