Name: Intuit ProSeries: Preparing 990 Non-Profit and 709 Gift Tax Returns
Uploaded: 2025-11-04T20:16:03.763Z
Duration: 1 h 8 s
Description: Intuit ProSeries: Preparing 990 Non-Profit and 709 Gift Tax Returns

Transcript for "Intuit ProSeries: Preparing 990 Non-Profit and 709 Gift Tax Returns": Hello, and welcome to today's Intuit ProSeries webinar, preparing nine ninety nonprofit and seven zero nine gift tax returns. I will be your presenter today. I am Diana Crawford. I am a CPA, have been a CPA going on a little over thirty four years now. I'm a tax strategist. I love to help my clients plan for the future and help them build their legacies, and that's more readily done through forward thinking rather than just looking at the past. I did serve on Intuit's tax council for a little over five years, and I've been a presenter at various conferences like Intuit Connect, Bridging the Gap, and, the NATP conferences. If I wasn't here with you today, I'd prefer to be out at the beach. That's a little far away, so I'd be in my garden at home. But we have some some things to learn about today, so let's get into those. A couple of housekeeping items to begin with. The webcast streams exclusively through your audio speakers. If you've taken web webinars before, you're familiar. We recommend using Chrome or Safari for the best experience. We do not recommend VPN, ad blockers, or firewalls, a or using incognito mode. Now right after the end of the survey at the end of the webinar, there will be a survey. As you'll learn through this webinar, I value my time, and I value yours. And so we love to make these, webinars as efficient and effective as possible. So we would, greatly appreciate you completing the survey so we have feedback, on today's webinar. And we can hopefully make those in the future better for you. Alright. So participating in the webinar. There are ways that you can, participate, that is through the polls. And so when you wanna participate in the polls, you are going to see it either pop up in the main screen where you can answer a question, or over in the box to the right, you'll have polls between chat and question and answers. And you will answer the poll question there. Now don't worry about your correct answer to the poll question. As long as you do answer the poll question, then your answer is recorded and your presence is also noted for CPE purposes. So, again, it'll either pop up in the middle of the webinar screen here where the slides are or over in the box on the right where you currently see chat and question and answers. Alright. So just a disclaimer, you are here today for, an educational webinar. This should not be construed as tax advice. The information presented is believed to be accurate, but legislation can change that information at any time. We we may or may not be able to update the webinar for any change in legislation, So make sure that you monitor, authoritative sources and guidance for those updates. And because every client and every situation is unique, you wanna make sure that you're carefully considering the information that we present today and applying it to your own clients. Now today's webinar, because it is a live webinar, is eligible for one hour of CPE and one hour of CE credit. So to to receive the CE credits, you will need to answer the interactive polling questions that are given throughout the webinar and attend a minimum of fifty minutes of the webinar. There's at least two poll questions, but there might be more. Now your course certificates are emailed to you to the address that you used to register for today's webinar. And those usually come within twenty four to forty eight hours. If you don't have your birth certificate within forty eight hours, my suggestion is to check your spam. See if it has has gone there. And if you don't find it there, then reach out to the web address you see below, protax_training@intuit.com. And also remember that you can download these slides today, where it says docs, so that you'll have them to refer to in the future. Alright. So let's talk about what we're going to cover today. I'm going to go through the basic input of a nine ninety, some of the common schedules that you fill out when you're completing a nine ninety. We're gonna talk about all the different kinds of nine nineties there are and really hopefully get you from start to finish on, I've gotta do a nine ninety. I've not done one before, and what do I need to know to get me there? The other thing that we're gonna talk about today is, gift tax returns, seven zero nine returns. So how do you input that that basic gift tax return? Put in the the gifts, put in the, individuals to whom the gifts were given, and just basically everything from, again, start to finish that you would need to know for a gift tax return. So those are my objectives. Kind of like I just mentioned, the September and the July. Alright. So it's time for our first poll question. You are here and attending. So the question just simply is, thank you for being here, but why are you here? Sometimes the motivation is CPE. Sometimes it's you just wanna learn new solutions. Maybe you're looking into the product. You wanna see how it works. Maybe you, have a general interest or education. Maybe you have a problem preparing one of these types of returns, or maybe you know that you've got a return coming up and you want to, just get some more information. So pick the answer that works best for you. Give you about twenty more seconds to make your poll selection. Remember, on the main screen here where the spot is or on the right where it says polls, either place you can make your selection. Alright. I'm gonna go ahead and close the poll and so we can get started. Alright. So let's talk about the September. So as you can see on the slides, there's a lot of different types of September out there. And I'm gonna jump over to end product first, but I just wanna kinda cover the the background and the and the and the ground rules. So, you know, there can be a nine ninety EZ if the entity normally has revenues of $50,000 or under. I'm sorry. That's the nine ninety n, which is basically what we used to refer to as postcard. And then the nine ninety has other requirements. It's, of course, in much shorter form, but then you have the full $9.90. And so I'm gonna take a beat a brief, detour into the nine ninety n and the nine ninety e z. But most of what we'll be looking at today is the full $9.90. Because if you know the full $9.90, the e z and the n are a piece of cake. Alright. So let me jump over here into my screen and show you what the very first information worksheet screen looks like. And so when you get in, you're just gonna put in the common information that you do on any information worksheet screen about the nonprofit. So it's the name, it's the address, it's the email. If there are things that apply, like late filing for her clicking, legislation relief, filing a second return for the same filing year, that's where you want the information here. And then we get down into what type of return is this. And so here is where you have your 990. So I'm gonna unclick the 990 here and just go to the 990 n. And when we see the 990N, that is, like you said, an e postcard will be sent for you. So in ProSeries, you can fill out this information. You check the box to verify that the organization's annual restates are normally less than 50. If they go, if they use other names, you fill that out, fill out the website, the principal officer, if this business is going if this organization is going out of business, and that's it. That's the information that you need to fill out for a September n. So compliance for someone who has $50,000 or less on a recurring basis is is pretty easy. And all you need is, you know, the basic background information, who is the principal officer, their name, address, and that their receipts are, are normally less than $50,000. So you could go look at the details on what does normally less than mean and what happens if they have go slightly over in one year. That's a that's a technical issue. I'd say go look that up. Know that. If you're comfortable that a nine ninety is what is appropriate for your or nine ninety n, this is what you file. Click the efile button and away you go. So let's go back to the information worksheet. Now let's talk about the nine ninety e z. So if you're gonna do the nine ninety e z, it's the short form, but it still has a good bit of information that you have to enter about the return. What the accounting method is, what the, tax exempt status is, the revenues, the expenses, the net assets, and then you do a balance sheet. So it's the balance sheet. It's the program accomplishments. And then getting all the way down here, you're gonna be listing who the officers are, how much they, what time frame they work in the organization. As you can see, there's there's a lot of information that you do fill out. So 990, name, who's in charge, and are they less than 50, nine ninety e z, you do have to have financial statements. The statement of of income and and balance sheet, if you wanna speak in nonprofit non nonprofit terms. And then you're going to to then go and complete all the other information answering all of these questions. And one thing that I'm gonna point out now, and I'll point it out many times throughout the rest of the webinar, is Schedule o. And I think of Schedule o as other. So if there's any time you have a question, like you can see on the first one, did the organization engage in any significant activity not previously reported to the IRS? The answer to that is yes. Now your organization is doing something that they didn't do before. You're gonna put yes, and then you're gonna go to schedule o and detail that. So if there's any other information you need to give, the IRS to make this filing complete, then schedule o is where all of that goes. So you're gonna keep scrolling down, entering all of this information, who the books are in care of. So that's something that you need even if you're doing the nine ninety, the FinCEN reporting. And, again, questions about, are there any donor advised funds, operating hospitals? And so you're just answering the questions. I find that this does take a lot of time to go over these questions with the client, obviously, and and answer those. And then, of course, if you have any employees or any contractors that were paying more than a $100,000, then that information has to be listed here in detail. Again, if there's anything else that you need to report related to this nonprofit organization, then that goes on schedule o, and that's an an other. So we talked about the nine ninety n postcard, nine ninety e z, which is basically four pages. I believe it's four pages. And, yes. And so so very, very minimal. Now there are some other schedules that you might have to report. And so that would be if you have to report the nine ninety t. So the nine ninety t is if there is, anything that would require to be reported, which is unrelated business taxable income. So where I see this a lot is another activity that the organization is involved in that is not germane to the nonfob activity of the organization. So that's where the nine ninety t might need to be filed with either an EZ or a nine ninety. If you need to file that, you don't have the option of filing the nine ninety t with the nine ninety and postcard filing. Alright. So we're going to step away from those, and we're gonna go back to the the full nine ninety. That's what most of my clients fill file because they have organizations that have substantial income, expenses, and are required to report the nine ninety. So back on the information page, we're going to fill out this information, the type of organization that they are. In a lot of cases, we have a 501 c three. What is it a calendar year or a fiscal year? I find more fiscal years with nonprofits, I believe, than any other type of filing. And it is possible that the, that the nonprofit would have to pay estimated taxes and be enrolled in the FTPS if They do have the unrelated business income and might have to make payments. So you answer that information here. My approach then is to start at page one. And as you can see, we go all the way through page 12, and those pages sometimes can be multiple pages. First is a summary of what does this business do, how many voting members are there, and then it jumps right into the revenue. So, this is just a smattering of information that I pulled from one of my clients. But you're putting in what the income is. You have a prior year income and a current year income, and so you have a good comparison right off the bat from where you entered this. But when you're entering this, as you can see, of course, you all know the the specifics of pro series. If it's green, it means it came from somewhere else. This would have been rolled over from last year. But all of these individual fields here, are carrying forward from a more detailed page. So if I click back to the contributions and grants, I'm gonna get to page nine where I have the very detailed listing of the statement of revenue. And remember, if there's something on this report that's not listed and needs to be included as an other, that's gonna evoke the Schedule zero. So here's the different types of income that's specifically listed out, such as federated campaigns, membership dues, fundraising events, government grants. Then they might have program service revenue. And don't don't take what I've put as example words into this nonprofit return. I I've just put in very as generic as possible, you're going to put in what your particular organization does, and you're gonna put their, SIC code, business code here as well. Now look at the columns. Let me go back up. You've got total revenue. The next column, you have related or exempt function revenue. So as you can see, that's that income, when you put it here, is already going to the is gonna go to the right place. If it's unrelated business revenue, that's when you're gonna have that, nine ninety t. And then you might have revenue excluded from tax under section five twelve to five fourteen. If you have that income, you're not sure, go look up those two sections. So most of it for my clients is under b. It's the related or exempt function revenue. So that would be here and not there. And then you have other things. So example, you might have income that's related to the exempt function, but it's not in one of the categories up top. Again, you're gonna put that there. Here you have investment income, income from investment of tax exempt bonds, royalties. So that's more than likely going to be this unrelated, taxable business income. You might have rents and rental expenses. Now you may have this that's that's related to the, the nonprofit's objective, or it can be property owned that's rented that's unrelated business income. So you make that determination. And once you've put that in your column here is on the left, you decide whether that's related or unrelated, and that's whether it's called the second column or the third column. Income from the sale of assets other than inventory. And if it is sale of inventory, what is the or other than inventory, what is the cost basis? So if they sold a piece of property, then that's gonna be reported here and whatever the cost basis is here. So the gain is gonna be reported on this return. And, you know, that's the thing with a lot of the nonprofit returns. It's a lot of reporting of information. And, you know, typically at the end of the day, unless there's a lot of unrelated business income, there's no taxes due, but it is, extremely important that everything is reported properly. So once you have gone through this revenue page, which is, page nine of the return, that's going to give you the opportunity to put in all of the business income. Income. So, basically, that's what you know, page nine is all the income. You've gotta fit that in, to that schedule. Then you go to page 10. And so that starts with the statement of functional expenses. So you've got what the expenses are, and here's the categories. Grants, domestic organizations, to individuals, to foreign organizations or governments, benefits paid to or for members. So, you know, if you think about all the possible types of of nonprofit organizations, and there's they're vast. Anything from, you know, associations, social associations to, organizations that run businesses that are are nonprofit. There are so many different kinds of functional expenses that can be in here. This is where there's a lot of this information that may not apply to yours, but for those that it does apply to you, you would need to make sure that you're entering that. So it's compensation, so you'll need the detailed payroll information, of course. If there's pension plans, payroll taxes, fees, investment fees, the normal what we would consider normal business expenses, advertising office expenses, technology, occupancy, travel, interest. Again, anything their business would have, this might also have that as well. And you're gonna get down to the very bottom. And so some of your expenses might might be fundraising expenses. And if that's the case, here, you're going to break this out into this column to say that this amount of the total expenses was for fundraising. Now sometimes fundraising expenses are not all necessarily fundraising. Some of them could be management in general. Some of them could be program services. And this is where you would need to go and review what is considered a fundraising expense and what could considered management in general or program services. And that's going back into what is the classifications, for those. But you're gonna be putting these into these different columns. Sometimes there are joint costs, for, like, combined educational or fundraising campaign campaigns. You're gonna put all of that here. So, basically, page nine was your income. Page 10 is all of your functional expenses. And then after that, you're gonna come into basically filling out your balance sheet. So, page 11 is your assets. Cash accounts, accounts receivable, loans, any assets that are owned by the nonprofit, investments, and you'll get your total assets here. Then you've got your liabilities, your accounts payable, events payable, deferred revenue, any other kind of loans, mortgages. You'll get your total liabilities, and then you come down to the net assets or some sometimes called fund balances. Or if you're comparing this to the likes of a business, it would be the equivalent of your equity or your retained earning section. So so this so as you as you see, if you're not familiar with nine ninety, you're putting in the full financial statements here similar to to what you do as a, in just a business tax return, but in a little bit more detail. And, of course, when you get down to the equity section, your equity can take many categories. So you have donor restrictions, net assets without donor restrictions, maybe, paid in capital retainers. So you're gonna break this out into into all of those different categories. And, of course, I'm assuming that this is the client that you're working with. You're not necessarily maybe a, an employee of the nonprofit, but even if you are, it's knowing what all of these different categories are, how they run their business. If, their books are audited, then that pretty much classifies, the the financial should be all classified for you. If not, that's something that you'll need to make sure that you've got. And then you can roll right over into the reconciliation of net assets. And so, again, everything has to tie in. So, of course, I say that about any business return, and this is a business return. It just has does not have the profit motive, is make sure that your books are are totally, done, adjusted, and it makes preparing a tax return so much easier. So you're gonna reconcile too the changes in the net asset and fund balances at the end of the year, and so that's gonna agree back to the page before. Now, it's the same here. You can have cash method. You can have accrual method. Make sure that they're, consistent. If they, do plan on a change of method of accounting, then that would have to be explained in Schedule o and other forms filed. And, again, answering the final questions about, the tax return. And if it's other, as I mentioned, you need a Schedule o. Now there's a lot of other schedules that, you might also have to, report. So if you have a church, a school, a hospital, a mental medical research facility, and if it has public charity status, then you may very well have to complete Schedule a. And as you can see, Schedule a has many, many parts. So, again, this is a this is a lot of detailed information that you would need to report, on on that particular entity that you're working. Then we have, after schedule a, we have schedule b, and that's the schedule of contributors. So this is if you're filing the nine ninety or the nine ninety e z. It's not for if you're filing your nine ninety n. So this is any individual, who had contributed more than $5,000 in money or property. And I said individual. I meant one contributor, either individual or entity. That there's information that must be reported here. So then you have schedule c, which is political campaigns and lobbying. So I think you're starting to see here where nonprofits have a lot more reporting here. We even are gonna go to, schedule d, and this talks about supplemental financial statements, when organizations maintain donor advised funds, Where did they come from? Where's the control? If you have conservation easements, that all gets reported here. Organizations that maintain collections of art, historical figures, or other assets. You may not have known or or thought that all of this information was required, and that's why I'm just touching on it here. Schedule e is for schools. Schedule g, is for fundraising or gaming activities. There are, in a lot of states, just to give you a heads up, specific requirements in terms of, solicitations or gaming activities. So if your client does perform any of that, make sure that you are completing the information needed for them, to go through all of all of the questions there. Hospitals have their own form conveniently named each. And Schedule I is grants or other assist assistance to other organizations, governments, or individuals. So, again, you're gonna be reporting the information. I I just I know you know, but nonprofit returns are two to three to four times more likely and involved, than other returns. Schedule j, very important, and that is if any of the individuals were paying more than a $100,000, which I mentioned before, then schedule j is where you're gonna come and list out that information. And so this is, if the organization provided first class travel, or paid many individuals, highly compensated employees, trustees, directors, officers, key employees, then that information has to be completed and reported on on schedule j. Keep going here. We also have schedule k, supplemental information on tax exempt bonds. Probably not something that you see a lot of, but potentially. Transactions with interested persons, so just keep that in mind. Sometimes the the, interested person is not always very obvious from the outset, but that's where you're, asking of that is is key. You also have noncash contributions. So if you think about it from the standpoint of when you're preparing an individual's tax return and you're reporting that certain items were donated to nonprofit organizations that are things such as, you know, works of art or historical treasures or or things like that. This is where this is reported. Again, if it's if it's over a certain, dollar amount, but cars, planes, boats, intellectual property securities. So this gets reported in the $9.90. Of course, any private and and sensitive data isn't made public, but that information is still reported in the noncash contributions. So here's your Schedule O and what that looks like. And so as you can see, here's all the different places from which in ProSeries, it directly throws you over to Schedule o so you can put these in. But then it's the information, and that's just down here below where you would enter that. Keep going here. Related organizations and unrelated partnerships are reported. I think that gets us about to the end of that. The September and this is for a private foundation. So if you are doing a tax return for a private foundation, the nine ninety is after all of the regular the nine ninety is separate, and it's it's a different return that's here at the end. As it says, this is information is made available to the public, so make sure that you're not putting anything in the return that that should not be disclosed publicly. So let me go back real quick, and I'm gonna go to back to schedule l, because I just wanna make sure that I've, appropriately, discussed and I'm sorry. Page 11. That this is the balance sheet for the organization. And so, you know, it's it depends on how you normally approach a business tax return. Do you go to schedule l first and fill out the balance sheet so you know what you should have as your net income, and net income synonymous with the non profit's net activities? Or do you do the, you know, income and expenses first and then make sure that the balance sheet falls in? So you'll develop your rhythm and you'll figure that out on how you want to approach getting into the nonprofit because the first couple of pages are all about questions about what the nonprofit does. And then after that is filling out the detailed financial information about the income sources, the expenditures, the assets, the liabilities, and the net from balance. And as as within everything in accounting and tax returns, it has to balance. So your beginning numbers need to be corrected in agreement to what was filed previously, Current year numbers again, and then the change between the two will will get allocated between it. Alright. I'm gonna stop my sharing and go back in, and let's look at where we've gotten to in our slides so that I can tell you about the information that you have, in the printout here and then the other information that you might have in the document and then information we went over in the in the, in the product. So here you have the September. We've talked about select what you're doing. You do wanna make sure you fill out this first because that will help turn the questions that have to be entered for your type of organization to required and turn off the questions for those that are not required. Not necessarily all of them. You may still have some questions that you have to answer. No or sometimes not applicable to, but for the most part, that turns off the majority of them. So on the next one, you can see kind of the balance sheet and the revenues and expenses. You can see that's page nine, which is the revenues. 10 is the expenses, and 11 is the is equivalent of the balance sheet, just in case you wanna refer back to where exactly that is in the net net. And as I remember, I mentioned in the beginning, on page three, there is a list of required schedules, and here's where all the detailed questions coming in. So you'll you'll have those to, start with. So it's time for our next poll question. And I know that I've said this a couple of times throughout the course of, the webinar so far today, but the answer the question is, when is a schedule o required in September? So it's when the nine ninety is amended, when the nine ninety does not have other revenue, when the nine ninety has answers to tax compliance questions, or all of the above or none of the above. Remember, it doesn't matter if your answer is correct. Answering the poll question lets us know whether you're still attending the webinar. Alright. So I'm gonna give you about thirty seconds to finish this. And, again, just select an answer. You're not judged on whether the return whether the question is correct or not. And then I'll let you know what the answer is. And I will give you a hint and just say it's a little bit of a tricky question. Alright. So I'm gonna go ahead and close the poll, and I will tell you that it's actually all of the above. So it's possible that you would have a schedule o in any of those situations because, as we mentioned, the second schedule o is is anytime you have any other information that's used. Alright. So the next thing we're gonna do is we're gonna talk about the seven zero nine gift tax returns. So as you can see from the screen that I have here and I'm gonna get into that return so I can show it to you. But, in the gift tax return, you can file a gift tax return for a taxpayer and their spouse, or I guess you could file it separately as well. Not sure I've seen that in practice, but it is possible. There are questions about so let me stop my screen share on the slides and go to the product so I can show you all of these. There we go. So in the return, you've got details of questions. And, again, it's what's the name, social of the taxpayer. None of this information is accurate. Just filled in. If the person has passed, what's their date of death, phone numbers, address, spouse. Believe it or not, I have several clients where the spouses live separately. And I don't mean across the street. I mean different states. So that's possible. Sometimes you have a different address for the spouse, for the the taxpayer. And then you have elections. Look. So, like, consent to split all gifts, election to treat certain tuition payments as paid over five years, due date, whether an extension was filed, and other options, calculate descriptions, what service center, the preparer, the letter, everything. So that's pretty much, you know, your your basic general information that you're gonna put on, on the main information sheet. So the next thing that I do is go to the donee's list. So a donee is the person who is giving the gift. I'm sorry. I said that wrong. Donor is the person giving the gift. Donee is the person receiving it. And I cut myself right away because I was like, woah. Woah. Woah. This is junior. So John Do senior is doing the giving. He's a donor, and John Do junior is the do me. And so he is, in this case, the taxpayer's son. So we're going to look at, what that is. And if we're doing this depending on the year, the annual exclusion might now be 19,000. They may not be a skip person, so that's where they are in the lineage. And they might be an indirect skip person, or they might not be. So you're gonna put that information here. If you're not sure what skips are, that's a reading. So you would want to go and and look and find that. And also make sure that depending on what year's tax return you're doing, you have the right annual exclusion amount in here. Since the year that I'm working on is 18000, I'll leave it at that. And so this is the the donation. So what happens if you have more than one domain, more than one person to which a gift has been given? You just simply scroll down. You'll then be on number two. This is similar to entering partners. And so, you know, this is going to be this is daughter Doe. And you'll put the the names here and then put what the relationship is. And look under the relationships. You've got a lot. You've got the son, the daughter, the in law, the in law, the grandson, the granddaughter, the great, the great nieces, nephews, cousins, father, mother, husband, wife, or just gave it to someone, I don't know, and there's no relation. But you're gonna fill that out. Now notice that you do not put in this gift tax return Social Security number. So you are putting in name, address, donee entity type, the relationship, and what the annual exclusion is. Because remember, those are being reported by the person giving you gifts. So once you have all of the donees in, we're gonna say that this person lives in the same address because I hate errors outstanding. And then we're gonna go and talk about the gifts that are given. So first, you enter the your client, the taxpayer. Second, you enter the donees who received the gift, and then you come in and you enter the gifts. So first thing that you're gonna do is you're gonna select your donor. In this case, the taxpayer is who gave the gift. Then you're gonna select the donee from the list, and it's gonna be number one. So this is what Junior got. And then you're gonna put in the date of the gift, the value of the gift. And so this is, just putting in a date here and then the value of the gift. So this is easy if they gave them cash, cash equivalents. Not quite as easy if as if they gave them, let's say, real estate. So let's say that it was real estate. And so we're gonna put in the value of the gift at a 750,000 number. And the taxpayer's interest in this property was or basis in this property was 700,000. And in the description of the gift, you're going to put the details, the address. Now you've also got the gifts report here. So when you put this in, you're going to have the gift report that that starts accumulating for you. So here is where we might put this is 4567 Main Street and what the, what the full address is. So that's pretty simple to give you, the information on what the discs are that you're giving. And then, of course, after that, you're going to report other information about whether it's a skip. Now, if you're if you're duplicating the gift and you wanna put on another copy, you can do that. When you have another gift, you're gonna simply go here and you're going to create the second gift. So we're not gonna leave out the daughter, so we're gonna select that. Or, I'm sorry, the taxpayer's giving it, and it's gonna be donie number two. Of course, I always create cheat sheets so I know who they are especially if there's many donors. And then what the date of that gift was, oops, on here, for this particular example, the value of the gift, and the basis. And, again, you would put what the details are. Or it could simply be something as, $6.50 and $6.50, and what was given was cash. And, of course, checks, wire transfers, all of that is is the same as cash. So that's that's going to fill out all of your gifts worksheet. So if you go over to the actual, gift tax return, once you filled in taxpayer, donees, and gifts, then it has, put this in for you. Of course, you have other questions to answer. If the no more passed during the year, if there was an extension filed, the number of dones, if there's gifts by spouses to third parties, here you've got all your your questions that you're answering. And then I'm gonna go through this tax computation in a minute. So I'm gonna kinda scroll past this to just show that then you've got the, the And then once we go past that, it talks about the spouse's consent on gifts. That's at the bottom of page one. Page two, you get to the computation of taxable gifts. Gifts subject only to gift tax. And maybe here we've got, different information that's that's all detailed out here as to what they've got. So this, again, flows forward from any information that we have that that came from the other gifts worksheet, and and so we put that information. So that's why we're if you fill this information out in the beginning, it this these forms are populated and completed for you. You're gonna reconcile the gifts. And so remember that there's an annual exclusion, for this particular year, 18,000 per person, and you're given to two LNEs. That's where the 36,000 comes from, and it subtracts it from the the value of the gifts that we entered. I entered more gifts than I showed you, so that's where the total came up to be $21.50. You subtract out the annual gift exclusion of 18 per person and get down to the net of $2,000,001.14. Now you do have generation skipping transfer taxes that might be, payable with this. You also have QTIP, marital deductions that might be, germane to this. How about if this taxpayer has given gifts in prior periods? So look at this. This is any gifts that this taxpayer or spouse has given since 1932. So you'll have that information. They've been clients for that long. And so to enter that, you're gonna click Zoom, and that's where you'll start giving that information. They've got a year. For every year you can enter, you'll put that information in. And then you might have '71 through '81. More realistically, you'll have a lot of eighty twos through 2023 and going forward for each year that you have there. So you're going to put in what gifts they gave in a prior year. You're also gonna fill out the calendar year, the Internal Revenue Office where the prior return was filed, the amount of the applicable credit against the gift taxes that were taken if it was after, 1976. And so, you know, again, a lot of information here. If this is a new client to you and you're not familiar with what gifts they've given in the past, this can be rather, rather involved. Obviously. Alright. So then you have if you have a spouse who has passed and they have an unused exclusion, how you're gonna move their unused exclusion over to your, your client when that's applicable. So here's where the information is entered about that. And then computation of generation skipping transfer taxes. Again, educate yourself on what that is and when that's required, and then here's where you know where to come in and put that information. And then the GST exemption reconciliation, if that's the case, you have the information here. So now I'm gonna go back to page one because I wanna talk about the tax calculation. So you recognize on this, worksheet here that we have a $2,114,500 amount that could be subject to gift taxes. So what happens is that's the amount of gifts that were made over the exclusion. Then you have the amount of the tax that's computed as owed if it were owed on this. And then you have the applicable credit that this taxpayer has, in totality. And so if the credit is larger than the tax that is calculated, which it was here on line six, then this taxpayer does not owe a current gift tax amount. But this amount and the maximum prior years, as you saw, roll forward. So while you see that it calculated the amount of tax of 791,000, that's just the amount of the tax that's not going to be paid now and is basically never going to be paid on this, unless they exceed the exemption amount. Legislation in 2025 changed what that exemption is, and it can change in any other tax legislation that is passed. So you would always wanna make sure as you're filling out these seven non gift tax returns that you have all the prior gifts in, what you pick applicable exclusions were for that year, and and calculating whether or not there is or is not any taxes due. Of course, if there is, they sign it and pay it. They could have made an estimated tax payment, before, but, otherwise, that's that's the crux of the gift tax returns. Now, obviously, figuring out the values, similar to say state tax returns of the gifts that are made, that's not something that you necessarily do, but it is something that you have to make sure your clients have accumulated given in and given to you the correct amount. So let me stop sharing my screen. Let's jump back over into our slides and let me show you where we are. Alright. In terms of the gift taxes, I showed you the different forms, how to enter the donee. Remember, that's the person receiving it. Name, address, relationship if they're a skip person, which is at least two generations beyond the taxpayer, so that's something like a grandchild. But skips can mean a lot of things, so you might wanna might wanna look at that. Important for generation skipping transfers is who is the recipient. So lineage and and relationship is important. Remember it said in the beginning, it had all of those categories. And so if it is a, grandchild or great grandchild, then the GST comes into play. And as you saw, there is, you know, two specific forms that compute specifically the generation skipping transfer tax, if you have direct skiffs or indirect skiffs. I just I just showed you in the program, but I wasn't showing you. So, anyway, the transfers are the GST relates to the tax on bills. Alright. The details of the gifts given, you have categories such as cash, stocks, bonds, and real estate, tangible personal property, life insurance policy. So that's all the different gifts, that you might have that get included. Do you make sure that you are including the prior gifts? That's what the worksheet looks like where you can list list the gifts as well. And so this is what the prior detailed information looks like. We, went over that. Just know that they are in those section of years, 1932 to '70, '71 to '81, and then everything '82 and forward. And the questions. Or here's the tax computation, which is the last thing I showed you. So that is, that is the information that, will will you know, don't don't get worried about the fact that a tax amount is computed. It's computed, but then the exemption picks up if they still have exemption left. So with that being said, I'm going to take you in the third poll question. And if you were here to learn more about, the ProSeries product before you want to purchase the product, then let us know, through this poll that you'd like someone that's a sales specialist to call you about that. This gave you all of the information on how to do a gift tax return, what all was included. So if you would like that, you can answer this question yes. If not, you can just answer this question no. And I won't share the poll results for this. But if you would like that, a sales specialist give you a call, then you can you can let us know. Alright. I'll go ahead and close the poll. So just in review, the nine ninety, you can do any level of nine ninety with the nine ninety product from a postcard filing to an e z to the full nine ninety with the, nine ninety t. And, does that very well do quite a few of those. Also, on the seven zero nine gift tax return, You're putting in the taxpayers, the donees, the gifts, signing on to the donees, and completing the gift tax return. Again, as I say, the devil is in the details. You'll wanna make sure that you've got everything, included, asking all the right questions. That's usually a a conversation or or many, to get those tax returns correct. So next steps, there will be a survey link as soon as this webinar concludes. And as I mentioned, please feel free to give us your feedback. If you'd like to and didn't before, make sure you go to the upper right hand corner and click on docs so that you can save the handouts. A lot was in product, but the slide should give you some, memory joggers so you'll know where to go to look. If you're looking for more training and resources, there's two places that you could go, easily, and there's the URLs that'll be in the documents that you're getting, accountants.intuit.comtrainingandaccountants.intuit.comtaxprocenter. Lot of good information in there. I've mentioned I'm a time junkie. I like to get in and do things. And if I have a question, this is where I go because I'm not likely to pick up the phone and call support. It's just not in my character. But I would also go to the accounts.intuit.com support or the accounts.intuit.com community. And either of those two places gets me to exactly where I need to be to find the information out of what, of what I'm looking for. And so just to wrap up and let you know, your CPE certificates will be emailed, in the next twenty four to forty eight hours. Your CE, if it's, applicable and you put your PTIN information in, is provided to the IRS within about a seven day time frame. I, sincerely appreciate you joining this webinar today. I hope the information that we provided will help you in preparing returns, for September and and gift tax returns in the future. Invite you to watch other webinars that I moderate as well, and really do appreciate you taking the valuable time to spend with us today. Remember, survey is coming up next, and we'd love to have your feedback. Thank you so much.