Confused with Form 709, Gift Tax

[bhata]

With all the different special situations, I'm so confused
with how to fill out IRS Form 709.

Last year my widower father (still alive) gave me and my
sister cash, let's say $32,000 each. This is the first
time he has had to file 709.

Here's what I started to fill out, but I can't find
where the "Lifetime $1 million" is applied. Is that
the $345,800?

Schedule A, Part 1
1B - Me, Son, Description=Cash
1F - 32,000
1H - 32,000 (Net transfer)

2B - "Sister", Daughter, Description=Cash
2F - 32,000
1H - 32,000 (Net transfer)

Schedule A, Part 4
Line 1 - 64,000 (Total value of gifts of donor)
Line 2 - 24,000 (Total annual exclusion for gifts)
Line 3 - 40,000 (Total included amount of gifts)

Line 8 - 0
Line 9 - 40,000
Line 10- 0
Line 11- 40,000

Schedule B & C
Blank

Form 709
Line 1 - 40,000 (Schedule A, Part 4, line 11)
Line 2 - 0
Line 3 - 40,000
Line 4 - 8,200 (Tax computed)
Line 6 - 8,200
Line 7 - 345,800 (Unified credit)
Line 9 - 345,800
Line 11 - 345,800
Line 12 - 8,200 (Enter smaller of 6 or 11)
Line 14 - 8,200
Line 15 - 0 (Balance, subtract 14 from 6)
Line 17 - 0 (Total Tax)

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

[removep...@yahoo.com]

On Jan 28, 4:09 pm, bhata <bhata...@att.net> wrote:

> Here's what I started to fill out, but I can't find
> where the "Lifetime $1 million" is applied. Is that
> the $345,800?

I think so, because page 12 of the instructions say that the gift tax
on 1 million is $345,800.

http://www.irs.gov/pub/irs-pdf/i709.pdf

Sucks, this amount does not seem to be adjusted for inflation.

http://www.finance.cch.com/text/c50s15d030.asp

[bhata]

'removep...@yahoo.com' wrote on 1/28/2009 6:29 PM:
> On Jan 28, 4:09 pm, bhata <bhata...@att.net> wrote:
>
>> Here's what I started to fill out, but I can't find
>> where the "Lifetime $1 million" is applied. Is that
>> the $345,800?
>
> I think so, because page 12 of the instructions say that the gift tax
> on 1 million is $345,800.
>
> http://www.irs.gov/pub/irs-pdf/i709.pdf
>
> Sucks, this amount does not seem to be adjusted for inflation.
>
> http://www.finance.cch.com/text/c50s15d030.asp
>

Thanks for the feedback...