Haynes and Boone's Newsroom

Reminder to File Gift (and GST) Tax Returns by October 15, 2013
09/16/2013
Rice M. Tilley, Jr., John M. Collins, William D. Ratliff, III, J. Mitchell Miller, Jeffrey E. Raley, Danika Hudik Mendrygal, Rebecca E. Whitacre, Jamie L. Harris

If you made gifts in calendar year 2012 that should be reported on a federal gift tax return (Form 709) and you extended the deadline to file your gift tax return, the deadline to submit a timely-filed return is October 15, 2013.

Specific examples of types of gifts are included below:

  • If you made any gifts during 2012 in excess of the annual gift tax exclusion ($13,000 for 2012), you must file a gift tax return all of your gifts, even small gifts that are fully covered by the annual exclusion.
  • If you made a gift to a grandchild or to a generation-skipping trust for children and more remote descendants, it is important to file your gift tax return on time in order to apply your lifetime generation-skipping transfer (“GST”) tax exemption to such gifts.
  • If you sold any property (for example, real estate, stock, or an interest in a partnership or LLC) to a descendant or a trust in 2012, all such transactions should be reported and fully described on the gift tax return, even though the sale may be at full fair market value and no gift was involved. By fully reporting a sale transaction, you should ensure the statute of limitations begins to run on the IRS’s ability to challenge the valuation.

Please let us know if you need assistance with these matters, or if you need us to speak with your accountant directly to discuss reporting any gift and/or sale transaction.

Rice M. Tilley, Jr.*
817.347.6611

 

John M. Collins
214.651.5564
713.547.2002

 

William D. Ratliff*
817.347.6608

 

J. Mitchell Miller
214.651.5363

 

Jeffrey E. Raley
713.547.2088
 

Danika H. Mendrygal
214.651.5757

Rebecca E. Whitacre
214.651.5112

Jamie L. Harris
214.651.5266

To ensure compliance with requirements imposed by U.S. Treasury Regulations, Haynes and Boone, LLP informs you that any U.S. tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

*Board Certified – Estate Planning and Probate Law and Tax Law by the Texas Board of Legal Specialization.