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D. Father had made a $20,000 gift to son on February 1, 2019. Is any gift...

D. Father had made a $20,000 gift to son on February 1, 2019. Is any gift tax return due, and if so, when? Explain.

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D. Father had made a $20,000 gift to son on February 1, 2019. Is any gift tax return due, and if so, when? Explain

If you make a taxable gift, you must file Form 709: U.S. Gift (and Generation-Skipping Transfer) Tax Return, which is due April 15 of the following year (extended to July 15 in 2020). Even if you do not owe a gift tax because you have not reached the 2019 $11.4 million limit, you are still required to file this form if you made a gift that exceeds the $15,000 annual gift tax exclusion level. The IRS needs to keep a running tab of your lifetime exemption.

Over here D. Father had made a $20,000 gift to son on February 1, 2019. He must file a gift tax return and report that you used $5,000 ($20,000 minus the $15,000, 2019 exclusion) of your $11.4 million lifetime exemption.

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