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Form 709 Schedule A Part 1: Gifts Subject Only to Gift Tax

Updated October 18, 2026. Quick answer: Part 1 of Schedule A lists the gifts that are subject only to the gift tax, such as gifts to a spouse, to children and to charities. Each gift gets a row with the donee, a description, the donor’s basis, the date, the value on that date and, for split gifts, half the value. The details come from deeds, brokerage statements, appraisals and the trust documents.

What Part 1 is for

The form titles this part “Gifts Subject Only to Gift Tax”. The instructions say “List in Part 1 gifts subject only to the gift tax.” They add “Generally, all of the gifts you made to your spouse (that are required to be listed, as described earlier), to your children, and to charitable organizations are not subject to the GST tax and should therefore be listed only in Part 1.” The whole return is explained on the Form 709 page.

Before the columns, the instructions limit what goes on Schedule A at all: “Do not enter on Schedule A any gift or part of a gift that qualifies for the political organization, educational, or medical exclusion.” They also give a rule for each gift: “Enter a gift only once”, in Part 1, Part 2 or Part 3. A gift that reaches a skip person belongs on Schedule A Part 2, and a gift to certain trusts on Schedule A Part 3.

Questions A and B at the top of Schedule A

Question A on the form reads “Does the value of any item listed on Schedule A reflect any valuation discount?”. The instructions explain: “answer “Yes” to the question at the top of Schedule A. Also attach an explanation giving the basis for the claimed discounts and showing the amount of the discounts taken.”

Question B is the 529 plan box: “If you elect under section 529(c)(2)(B) to treat any transfers made this year to a qualified tuition program as made ratably over a 5-year period, check here”. The instructions add “Caution: Contributions to QTPs do not qualify for the education exclusion.” The related page on the 529 five year election covers that plan rule in more detail.

Which gifts to list, and how to group them

The instructions say to “Group the gifts in four categories.” The four are gifts made to your spouse, gifts made to third parties that are to be split with your spouse, charitable gifts if you are not splitting, and other gifts. “If a transfer results in gifts to two or more individuals (such as a life estate to one with remainder to the other), list the gift to each separately.”

On small gifts: “You must always enter all gifts of future interests that you made during the calendar year regardless of their value.” On gifts to a spouse: “you do not need to enter any of your gifts to your spouse on Schedule A.” That sentence is limited by the exceptions the instructions describe, namely terminable interests, certain future interests and gifts to a spouse who is not a U.S. citizen. Read those exceptions in the instructions before leaving a spouse gift off.

Where the number comes from, column by column

Column (a) is the item number, column (b) the donee’s name and address, and column (c) the relationship. For column (d), “Describe each gift in enough detail so that the property can be easily identified”. For real estate, “A legal description of each parcel;” is the first item. For stocks, “Give number of shares;” and “CUSIP number.” For life insurance, “give the name of the insurer and the policy number.”

Column (e) is the donor’s adjusted basis: “Show the basis you would use for income tax purposes if the gift were sold or exchanged.” The instructions continue “Generally, this means cost plus improvements, less applicable depreciation, amortization, and depletion.” The records are the purchase documents and prior-year depreciation schedules. Gifts of appreciated shares are discussed on the gifting appreciated stock to family page.

Columns (f) and (g) are the date of gift and the value at that date. “The value of a gift is the fair market value (FMV) of the property on the date the gift is made (valuation date).” “The FMV of a stock or bond (whether listed or unlisted) is the mean between the highest and lowest selling prices quoted on the valuation date.” For land and buildings: “Generally, the best indication of the value of real property is the price paid for the property in an arm’s-length transaction on or before the valuation date.” Support for the number is required: “To support the value of your gifts, you must provide information showing how it was determined.”

Column (h): split gifts, and gifts made by spouse

The form’s caption for column (h) is “For split gifts, enter 1/2 of column (g)”. The instructions say “Enter an amount in this column only if you have chosen to split gifts with your spouse.” Column (i) is the net transfer, which the form captions “subtract col. (h) from col. (g)”. The gift splitting page covers the election itself.

The section below the rows is labeled “Gifts made by spouse”. The instructions explain: “If only you made gifts and you are splitting them with your spouse, do not make an entry in this area.” And generally, “if you elect to split your gifts, you must split all gifts made by you and your spouse to third-party donees.”

Columns (j) to (m): the check boxes

The form lists column (j) as “Reserved for future use”, column (k) as “Charitable gift”, column (l) as “Deductible gift to spouse” and column (m) as “2652(a)(3) election”. Boxes (k) and (l) feed the deductions on Schedule A Part 4, where the instructions tell you to total the items on Parts 1 and 3 for which each box is checked.

Where it goes next

The form ends the part with “Total of Part 1. Add amounts from Part 1, column (i)”. That total is combined with Parts 2 and 3 on Schedule A Part 4, line 1, which the form captions “Total value of gifts of donor. Add totals from column (i) of Parts 1, 2, and 3”. The annual exclusion is explained on the Form 709 and the annual exclusion page.

Edition and line numbers

This page reads Form 709 (2025) and the 2025 Instructions for Form 709. Those are the current files irs.gov served on 2026-10-18, byte-identical to the archived copies. The form’s heading says “For gifts made during calendar year 2025”. Check the year printed on your own Form 709 and use the line numbers and column letters on that year’s form.

Common mistakes

  • Listing a gift that qualifies for the medical, educational or political exclusion. The instructions say “Do not enter on Schedule A any gift or part of a gift that qualifies for the political organization, educational, or medical exclusion.”
  • Leaving off a gift of a future interest because it looks small. The instructions say “You must always enter all gifts of future interests that you made during the calendar year regardless of their value.”
  • Valuing stock at a single day’s closing price or another convenient number. The instructions define the value as “the mean between the highest and lowest selling prices quoted on the valuation date.”

Related: Form 709, gift splitting, Form 709 and the annual exclusion, 529 five year election, and gifting appreciated stock to family.

Sources

Read from the IRS documents linked above on October 18, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.

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