In any event, the outcome in this case reinforces the importance of providing full and adequate disclosure of all transfers reported on a gift tax return, which may involve attaching supplemental statements and other documents such as trust agreements, valuations, and appraisals to substantiate the value of the gift ...
What does IRS require for an appraisal?
Appraisal Requirements The appraisal must be signed and dated by a qualified appraiser not earlier than 60 days before the date you contribute the property. You must receive the appraisal before the due date (including extensions) of the return on which you first claim a deduction for the property.
What information is needed for a gift tax return?
Report the gifts on Schedule A: Computation of Taxable Gifts. Here, you'd provide information such as a description of the gift, the recipient, and its value at the time it was made. You may also report transfers subject to the gift tax and/or generation-skipping transfer tax if applicable.
What is the valuation date for gift tax return?
A valuation date is the specific date at which the analyst estimates the value of a subject investment interest. The valuation date may be considered one of the most important inputs of the analysis. For gift tax purposes, the appropriate valuation date is the date of the taxable transfer.
Can you use a 409A valuation for gift tax purposes?
Crucially, a 409A valuation is not acceptable for gift tax purposes, as the 409A's valuations are used for income tax and have different considerations. In addition, a 409A valuation will not meet adequate disclosure regulations for estate planning and may value a different class of equity.
What is a completed gift for gift tax purposes?
Treasury Regulations Section 25.2511-2 distinguishes between complete gifts, in which a donor parts with dominion and control so as to leave him powerless to change its disposition, and incomplete gifts, in which a donor reserves a power to revest beneficial title in herself.