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>> I realize that giving more than the amount allowable for 2005 requires completion of gift tax form. Is there a table showing how much tax would be payable if I givw 5,000. more than tyhe 11,000. for 2005. Also would that be filed and payable along with the 1040 return? <<

If I read the tables right, you'd owe 18% on the excess -- or $900, unless you use some of your lifetime gift tax exemption.

HOWEVER -- if you file Form 709, you may not owe tax. Everyone gets a $1 million lifetime gift tax exemption, so if you gift an excess amount, you use Form 709 to keep track of the reduced exemption. In your case, if you'd never made a gift that large before, you can file Form 709, declare the $5,000 excess and apply it against your $1 million limit. You now have a $995,000 lifetime exemption remaining, and you own no tax on the gift.

You may be able to avoid Form 709 completely. If you are married or you are giving to a couple, you can avoid it by having different parties gift part of the amount. For example, you could give $6,500 to someone, and you could give $6,500 to their spouse. Or you could give $6,500 to someone and your spouse could give $6,500 to someone. These are under the $11,000 threshold (which applies to gives from one individual to another individual in any year) , so you don't have to deal with Form 709 OR reduce your lifetime exemption.

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