Personal Finance & Estate › Income, gift, estate & real-estate taxes › Gift tax annual exclusion ($19,000 in 2026)
Form 709 (gift tax return)
Due with April return· Tax rule
Law or rule (2026)Set by statute, regulation or the agency; numbers change yearly.
The federal gift tax return, filed by the giver, reporting gifts above the annual exclusion and other gifts needing disclosure.
See it on the Personal Finance & Estate map →How it works
File it by April 15 of the year after the gift; an income-tax extension also extends it. It is required when you give anyone more than $19,000 in a year (2026), split gifts with a spouse, give future interests such as many trust gifts, or allocate GST exemption. Spouses file separately. Usually no tax is due: the excess just reduces your $15 million lifetime exemption. Trap: gifts of LLC interests or real estate need a qualified appraisal to 'adequately disclose' value.
Why it matters for you
It tracks how much lifetime exemption you have used, and a properly disclosed return starts a three-year clock after which the IRS can't challenge the gift's value.
Think of it like
Like recording a deed: no money changes hands, but it documents the transfer and starts the clock.
Rules, limits and sources (2026)
IRC Secs. 6019 and 6075 require and time it; Treasury Reg. 301.6501(c)-1(f) defines adequate disclosure; IRS Form 709 instructions are updated each year.
Watch out for
How aggressively the IRS audits discounted family-entity gifts, and how to value them, remains contested in Tax Court.
Connections (2)
▸Form 709 (gift tax return) reports gifts above Gift tax annual exclusion ($19,000 in 2026)Law or rule (2026)
How they connect
The annual exclusion sets the reporting line: gifts to one person up to $19,000 in 2026 need no return. Give more, split gifts with a spouse, or give future interests, and the giver files Form 709. The return subtracts the exclusion and applies the rest against the lifetime exemption.
When it applies
Filed with the IRS by April 15 of the year after the gift; the filing duty has been tied to the exclusion since 1932.
The rule
IRC Sec. 6019 requires a return for gifts beyond the exclusion; IRS Form 709 instructions list the triggers.
Watch out for
Many people who should file don't; how often the IRS catches unfiled gifts, such as below-market sales to children, is unknown.
▸Form 709 (gift tax return) is filed with Internal Revenue Service (IRS)Law or rule (2026)
How they connect
Form 709 is the IRS's running record of lifetime giving. The IRS uses it to track how much of your $15 million exemption is used, so that amount can be subtracted at death on the estate tax return (Form 706). Adequate disclosure starts a three-year audit clock on gift values; without it, the IRS can challenge them anytime.
When it applies
The federal gift tax dates to 1932 (briefly 1924–26); returns are due April 15 after the gift year, with spouses filing separately.
The rule
IRC Secs. 6019 and 6501(c)(9) set the filing duty and the adequate-disclosure statute of limitations; IRS instructions explain both.
Watch out for
How detailed an appraisal must be to count as 'adequate disclosure' keeps getting litigated, especially for discounted LLC interests.