709 Gift filing, how much do you charge?

New client, and I am pushing out an invoice that's more than double the prior preparer.
2/3 hour was spent getting the client in my system in Dec, then another 3/4 hour spent in a meeting with client to pass the tax documents across my desk.

I am also doing a gift tax return, and just including that in the time charges for return prep.

I know going from 700 to 1500 can be a sticker shock to some, so hopefully it's not an issue with this client.

Just trying to get a feel for what a 709 with one $250k gift might run.

Just a cash gift? No other items shown?
I'd probably charge $500-750 and definitely state it separately.

Appreciate the feedback.
I was thinking somewhere along the lines of a $500 minimum, which is what I have as a stated minimum on Trusts as well. (I don't do complicated trusts.)

This client, I believe to be sophisticated enough to recognize the total time charges, but I will be sure to bring it to her attention when I deliver the tax docs.

This client, I believe to be sophisticated enough to recognize the total time charges...

Time spent has little bearing on my pricing. What is the value to the client?

I've had ERC claims I've prepared that have taken me 4hrs and charged $12K for. You won't get anywhere near that kind of spread on typical compliance work, but the principle applies.

This client, I believe to be sophisticated enough to recognize the total time charges...

Time spent has little bearing on my pricing. What is the value to the client?

I've had ERC claims I've prepared that have taken me 4hrs and charged $12K for. You won't get anywhere near that kind of spread on typical compliance work, but the principle applies.

What if someone calls you and wants a price on ERC work. How can you price it if it’s not fixed fee in that case. Do you outright tell them that it’s a percentage of what you save?

Also does that price include revision of personal and business income tax returns too?

New client, and I am pushing out an invoice that's more than double the prior preparer.
2/3 hour was spent getting the client in my system in Dec, then another 3/4 hour spent in a meeting with client to pass the tax documents across my desk.

I am also doing a gift tax return, and just including that in the time charges for return prep.

I know going from 700 to 1500 can be a sticker shock to some, so hopefully it's not an issue with this client.

Just trying to get a feel for what a 709 with one $250k gift might run.

A 709 is $750 minimum for us. And, separate charge from the 1040.

My boss has charged as low as $100, I believe.

Yes, we have a pricing problem.

I'm in your camp, TheGrog. I charge mainly by time. If we're talking parents gifting to a child, and I have the prior gifts, SSNs and addresses already on file and there's no tax due... I mean, that's what, like $50 of my time? It's about the same amount of work as a W2 except that I have to print and mail it.

Of course, there are more complicated situations and I'll bill more for those. The average of the 709's I've prepared is probably closer to $150. They just aren't usually that much work.

I don't itemize the charge, unless I'm preparing it at a different time than income tax. I do describe it separately on my invoice, but I don't break out prices. (My usual invoice for tax work is just "1040 individual income tax preparation for tax year 2022" so I'll add a second line in the description for the 709. There's just one price listed, though, the total for all work done.)

If I spend 5 minutes on a gift tax return (literally), my absolute minimum charge is $400.

The form is extremely complicated to understand and to do yourself - plus most clients ask a lot about gifts and require consultation and determination of basis, etc, even if it is not directly related to the 709 preparation.

I list it as a totally separate product, which it is. It needs wet signatures, assembly, and to be mailed as well (at least with my software).

And do you see the nickel and dime fees on HUD or other statements? $400 is a small price to pay to properly report a $250,000 gift.

https://good-2-great.co.uk/blog/the-val ... os-napkin/

This might sound harsh, but anyone who still bills straight time for tax preparation services is operating in the dark ages AND dramatically shortchanging themselves.
All customers pay for value. If you're not going to capture that as a business owner, why don't you sign up as an employee somewhere? You'll probably make the same amount of money and you won't have any administration to be concerned with. There's certainly plenty of demand for EEs right now.

This might sound harsh, but anyone who still bills straight time for tax preparation services is operating in the dark ages AND dramatically shortchanging themselves.
All customers pay for value. If you're not going to capture that as a business owner, why don't you sign up as an employee somewhere? You'll probably make the same amount of money and you won't have any administration to be concerned with. There's certainly plenty of demand for EEs right now.

Word up Captain!

"We" need to charge for our knowledge, not our time.

Not to mention, if same client who got a bargain from you for the first gift tax return, then has a complicated return, will expect the same bargain on the next one. Clients will do this even if you specifically explain why you charged what you did.

709 forms are one of the ones I use time on precisely because they vary so much by requirements. I don't have any trouble telling a client that this one was $50 and that one was $500. It's usually abundantly clear to them because of the amount of information I needed to collect from them to prepare it.

(On the other hand, my time on a return actually varies a lot less from year to year than other measures of billing, like form-based charges.)

Also, maybe we're all talking about things in different scales here. The vast majority of the 709s I prepare are to split gifts, so we're talking about u30,000 to an adult child to help them buy a house. If we're gifting a house, then, sure, there's lot more involved in it and that wouldn't be an "average" 709..

709 forms are one of the ones I use time on precisely because they vary so much by requirements. I don't have any trouble telling a client that this one was $50 and that one was $500. It's usually abundantly clear to them because of the amount of information I needed to collect from them to prepare it.

(On the other hand, my time on a return actually varies a lot less from year to year than other measures of billing, like form-based charges.)

Also, maybe we're all talking about things in different scales here. The vast majority of the 709s I prepare are to split gifts, so we're talking about u30,000 to an adult child to help them buy a house. If we're gifting a house, then, sure, there's lot more involved in it and that wouldn't be an "average" 709..

1. I might be missing something...but if a married couple are splitting a gift to their adult child under $30,000, then they wouldn't need to file a gift tax return. They would be under the annual exclusion. (Seriously, let me know if I am doing this wrong).

2. $50 for a gift tax return, that just can't be covering your costs. When I say I charge $750 minimum I mean that for any gift tax return. It is specialized knowledge. Vast majority of people have no understanding of how gift tax and lifetime exclusions/estate taxes work.