form 706

one more question. my wife and i gifted 24185. to my brother. i know we both have to fill out form 706 but im having trouble figuring my tax on that chart under form 706 instructions. line 3 is 12185 on part 2-tax computation. how do i apply that to the tax chart? i took 20% of 2185 on column D which was my split of the gift. thanks alan

Sissa51,

I believe you have the wrong form.
Form 706 is titled, For Decedents Dying After December 31,2006 and Before January 1, 2008. In short this is for the estate of someone that has died during 2007.

What you want is Form 709, Gift and Generation Skipping Tax Return.
This form is rather straight forward. Unless you have been very generous and have given away over $1,000,000 in your life time you will have no tax to pay.

The amount that exceeds your $12,000 and your wife's $12,000 will just go to decreasing your $1,000,000 gift exempiton from tax.


Th

sorry i meant form 709. do i need to file this form when i gifted 25185. and split with spouse? irs says i should. thanks alan

Yes, you need to file the form.

line 3 on form 709 is 12186.00. the tax table is confusing to me. anyone know what my tax would be using the table for computing gift tax? i know i want owe any taxes but i cant figure this table out. thanks alan