Form 709 and 8833 or not at all

Technical topics regarding tax preparation.
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NOVATax  
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Touching on a previous post a year ago and finally getting back to preparing the return.

Husband gives wife half ownership of his US rental property. Both are UK citizens residing in the UK.

Question is does he need to file a gift tax return, as US person would not need to file - and the below convention appears to say he would be treated as a US person.


The UNITED STATES-UNITED KINGDOM ESTATE AND GIFT TAX CONVENTION states




ARTICLE 8 DEDUCTIONS, EXEMPTIONS, ETC.

(1) In determining the amount on which tax is to be computed, permitted deductions shall be allowed in accordance with the law in force in the Contracting State in which tax is imposed.

(2) Property which passes to the spouse from a decedent or transferor who was domiciled in or a national of the United Kingdom and which may be taxed in the United States shall qualify for a marital deduction there to the extent that a marital deduction would have been allowable if the decedent or transferor had been domiciled in the United States and if the gross estate of the decedent had been limited to property which may be taxed in the United States or the transfers of the transferor had been limited to transfers of property which may be so taxed.



OR does he need to file the gift tax return and attach 8833 to show the position taken.


Any help is always appreciated.
 

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