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The unified credit, or applicable credit amount in Code Sec. 2010, is a one-time credit in life and at death against taxes payable on certain transfers. The applicable exclusion amount is the sum of the basic exclusion amount (BEA) and the deceased spousal unused exclusion amount.
Examples of Gift Tax Rules in Action Lets say you gave $117,000 to your mother in 2023 for her birthday. You would report $100,000 of the gift to the IRS, but federal tax law provides you with that unified gift and estate tax exemption ($12.92 million for tax year 2023) to offset any gift tax you may owe.
Who Must File. In general. If you are a citizen or resident of the United States, you must file a gift tax return (whether or not any tax is ultimately due) in the following situations. If you gave gifts to someone in 2023 totaling more than $17,000 (other than to your spouse), you probably must file Form 709.
For 2024, the basic exclusion amount is $13.61 million, and the applicable credit amount is $5,389,800 ( Rev. Proc. 2023-34).
The applicable exclusion amount (also known as unified credit) refers to the total gifts and estate transfers exempted from an individuals gift and estate taxes. Every U.S. citizen has an applicable exclusion amount for all gifts made inter vivos or estate transfers at death.
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There is an applicable credit amount which allows you to transfer a certain amount of assets during your lifetime free of gift tax. The total amount of assets that you can transfer during your lifetime is known as the applicable gift tax exclusion amount and is at $11.4 million.
You can give up to $17,000 (tax year 2023) per person per year to as many people as you like without those gifts counting against your $12.92 million lifetime gift tax exemption.
In Drake22 and prior, since the 709 return is part of the 1040 package, go to Setup Pricing 1040, and use the State/City drop down box. Within the list of available states, select GF - Gift Tax (709) to access the Pricing Setup for Gift Tax forms.

form 709 2019