Estate and Gift Tax Reporting of Gifts from Prior Periods
From TaxAlmanac
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It's my understanding that a 706 return is filed on an estates or trusts larger than $2,000,000 or more. A 1041 is used for less estates or trusts less than $2,000,000. The fiduciary will then prepare K-1's for each beneficiary with information taken from either the 706 or 1041 to pass information onto each individual's 1040 return.
In preparing a 706 return, it’s been found that a gift was made in 2002.
To correctly report the gift, the item is being placed on Form 709, page 3; Schedule B entitled “Gifts from Prior Periods.”
Categories: Stub | Federal Articles | Topics | Trusts | Estate Planning | Gifts
