Schedule B. Gifts From Prior Periods

If you did not file gift tax returns for previous periods, check the “No” box on page 1 of Form 709, line 18a, of Part I—General Information. If you filed gift tax returns for previous periods, check the “Yes” box on line 18a and complete Schedule B by listing the years or quarters in chronological order as described below. If you need more space, attach a separate sheet using the same format as Schedule B.

Caution. Complete Schedule A before beginning Schedule B.

Column (a) If you filed returns for gifts made before 1971 or after 1981, show the calendar years in column (a). If you filed returns for gifts made after 1970 and before 1982, show the calendar quarters.

Column (b) In column (b), identify the IRS office where you filed the returns. If you have changed your name, be sure to list any other names under which the returns were filed. If there was any other

14 Instructions for Form 709 (2025)

variation in the names under which you filed, such as the use of full given names instead of initials, please explain.

Column (c) To determine the amount of applicable credit (formerly unified credit) used for gifts made after 1976, use the Worksheet for Schedule B, Column (c) (Credit Allowable for Prior Periods), unless your prior gifts total $500,000 or less.

Prior gifts totaling $500,000 or less. In column (c), enter the amount of applicable credit actually applied in the prior period.

Prior gifts totaling over $500,000. See Redetermining the Applicable Credit , later.

Column (d) In column (d), enter the amount of specific exemption claimed for gifts made in periods ending before January 1, 1977.

Column (e) In column (e), show the correct amount (the amount finally determined) of the taxable gifts for each earlier period.

See Regulations section 25.2504-2 for rules regarding the final determination of the value of a gift.

Note. Amounts shown in column (e) should reflect all taxable gifts, even if no gift tax was paid due to the applicable (formerly unified) credit.

Redetermining the Applicable Credit To redetermine the applicable credit for prior gifts in excess of $500,000, use the Worksheet for Schedule B, Column (c) (Credit Allowable for Prior Periods).

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Instructions for Worksheet for Schedule B, Column (c) (Credit Allowable for Prior Periods)

Beginning with the earliest year after 1976 in which gifts using a credit amount were made, determine the credit amount (at current rates) for each quarter/year as follows.

Column

A Period

B Taxable Gifts for Current Period

C Taxable Gifts for Prior Periods

D Cumulative Taxable Gifts Including Current Period

E Tax on Gifts for Prior Periods

F Tax on Cumulative Gifts Including Current Period

G Tax on Gifts for Current Period

H Used DSUE Amount From Predeceased Spouse(s) and

Restored Exclusion Amount

I Basic Exclusion Amount for Year of Gift

J Applicable Exclusion Amount

K Applicable Credit Amount (Based on Amount in Column J)

L Applicable Credit Amount Used in Prior Periods

M Available Credit in Current Period

N Credit Allowable

Enter the quarter/year of the prior gift(s). Pre-1977 gifts will be on the first row.

Enter the amount of all taxable gifts for the year in column A. The total of all pre-1977 gifts should be combined in the first row.

Enter the amount from column D of the previous row.

Enter the sum of columns B and C from the current row.

Enter the amount from column F of the previous row.

Enter the tax based on the amount in column D of the current row using the Table for Computing Gift Tax.

Subtract the amount in column E from the amount in column F of the current row and enter here.

Enter the sum of (a) total DSUE amount (if any) received from the estate of the donor’s last deceased spouse and used by the donor in prior periods and the current period, and (b) Restored Exclusion Amount (if any). DSUE may not be applied to gifts made before the DSUE arose. Restored Exclusion Amount may not be applied to gifts made before the taxpayer restored the exclusion expended on a taxable gift to the taxpayer’s same-sex spouse. The Restored Exclusion Amount is applied in the first year that the taxpayer restores the exclusion and every subsequent year.

Enter the exclusion amount corresponding with the year listed in column A of the current row. (See Table of Basic Exclusion and Credit Amounts.)

Add the amounts in columns H and I of the current row and enter here.

Using the Table for Computing Gift Tax, determine the credit corresponding to the amount in column J of the current row and enter h ere. For each row in column K, subtract 20% of any amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977.

Enter the total of the amounts in columns L and N of the previous row.

Subtract the amount in column L from the amount in column K of the current row and enter here.

Enter the lesser of column G or column M of the current row.

Repeat this process for each prior year with taxable gifts. Do not enter less than zero.

Worksheet for Schedule B, Column (c) (Credit Allowable for Prior Periods)

16 Instructions for Form 709 (2025)

Example 1. Prior Years Credit Recalculation (for Form 709, Schedule B, Column (c))
(Three post-1976 years involved. All have the same maximum credit available. Tentative tax exceeds available credit.)

1 Column C: Enter amount from column D of the**previous** row.
2 Column E: Compute the tax on the amount in column C or enter amount from column F of the**previous** row.
3 To compute tax or credit amount, seeTable for Computing Gift Tax.
4 For years prior to 2010, the basic exclusion amount equals the applicable exclusion amount.
5 For each row in column K, subtract 20% of any amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977.
6 Enter the total of columns L and N of the**previous** row.

Example 2. Prior Years Credit Recalculation (for Form 709, Schedule B, Column (c))
(Pre-1977 gifts plus 3 post-1976 years: Earlier years’ gifts exceed credit then available. Last gift made after credit increased.)

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Example 3. Prior Years Credit Recalculation (for Form 709, Schedule B, Column (c))
($6M gift exceeds the applicable credit, $5M DSUE received prior to subsequent $4M gift in the same year.)

1 Column C: Enter amount from column D of the**previous** row.
2 Column E: Compute the tax on the amount in column C or enter amount from column F of the**previous** row.
3 To compute tax or credit amount, seeTable for Computing Gift Tax.
4 DSUE may not be applied to gifts made prior to when it arises. Consequently, the available DSUE for the current period is limited to $4,000,000, the value of gifts made after the DSUE arose.
5 For years prior to 2010, the basic exclusion amount equals the applicable exclusion amount.
6 For each row in column K, subtract 20% of any amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977.
7 Enter the total of columns L and N of the**previous** row.

Example 4. Prior Years Credit Recalculation (for Form 709, Schedule B, Column (c))
(Prior gift exceeds applicable credit, $5M DSUE received prior to subsequent gift.)

Example 3. Prior Years Credit Recalculation (for Form 709, Schedule B, Column (c))
($6M gift exceeds the applicable credit, $5M DSUE received prior to subsequent $4M gift in the same year.)

6 Enter the total of columns L and N of the**previous** row.|1 Column C: Enter amount from column D of the**previous** row.
2 Column E: Compute the tax on the amount in column C or enter amount from column F of the**previous** row.
3 To compute tax or credit amount, seeTable for Computing Gift Tax.
4 For years prior to 2010, the basic exclusion amount equals the applicable exclusion amount.
5 For each row in column K, subtract 20% of any amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977.
6 Enter the total of columns L and N of the**previous** row.|1 Column C: Enter amount from column D of the**previous** row.
2 Column E: Compute the tax on the amount in column C or enter amount from column F of the**previous** row.
3 To compute tax or credit amount, seeTable for Computing Gift Tax.
4 For years prior to 2010, the basic exclusion amount equals the applicable exclusion amount.
5 For each row in column K, subtract 20% of any amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977.
6 Enter the total of columns L and N of the**previous** row.|1 Column C: Enter amount from column D of the**previous** row.
2 Column E: Compute the tax on the amount in column C or enter amount from column F of the**previous** row.
3 To compute tax or credit amount, seeTable for Computing Gift Tax.
4 For years prior to 2010, the basic exclusion amount equals the applicable exclusion amount.
5 For each row in column K, subtract 20% of any amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977.
6 Enter the total of columns L and N of the**previous** row.|1 Column C: Enter amount from column D of the**previous** row.
2 Column E: Compute the tax on the amount in column C or enter amount from column F of the**previous** row.
3 To compute tax or credit amount, seeTable for Computing Gift Tax.
4 For years prior to 2010, the basic exclusion amount equals the applicable exclusion amount.
5 For each row in column K, subtract 20% of any amount allowed as a specific exemption for gifts made after September 8, 1976, and before January 1, 1977.
6 Enter the total of columns L and N of the**previous** row.|

18 Instructions for Form 709 (2025)

Table of Basic Exclusion and Credit Amounts

(as Recalculated for 2025 Rates)