PDF: Legal and Tax Issues, Preparation of Federal Gift Tax Return, Form 709

Tax and Legal Issues Arising in Connection With The
Preparation of the Federal Gift Tax Return, Form 709

© 2008 David L. Silverman, J.D., LL.M. (Taxation)
Law Offices of David L. Silverman
2001 Marcus Avenue, Suite 265A South
Lake Success, NY 11042 (516) 466-5900

September 13, 2008

1.    Essential Elements of the Federal Gift Tax.

a.    Property Law Requires Intent, Delivery and Acceptance.    The gift tax, which was enacted in 1932, is an excise tax imposed upon gratuitous transfers of “property” during a calendar year.  Payment of the tax is the personal responsibility of the donor, although secondary liability may attach to the donee if the donor fails to pay.  Treas. Reg. §25.6151-1. In property law, a completed gift requires three elements:  First, the donor must intend to make a gift. Second, the donor must deliver the…