The average cost to have Form 709, the United States Gift (and Generation-Skipping Transfer) Tax Return, prepared by a professional is $421. This cost represents the average fee per form for tax preparation services.
Understanding Form 709 Filing Costs
While the average cost provides a general estimate, the actual fee for preparing and filing Form 709 can vary based on several factors. Tax preparation firms often charge based on the complexity of the return and the time required. The average hourly fees for professionals handling forms like Form 709 are around $178.29.
Form 709 is used to report transfers subject to the federal gift tax and certain generation-skipping transfers. It's a crucial document for individuals who give gifts exceeding the annual gift tax exclusion amount (which is adjusted periodically for inflation).
Factors Influencing the Cost:
- Complexity of Gifts: The number of gifts, types of assets gifted (e.g., cash, real estate, business interests, or highly appreciated assets), and the valuation required for non-cash gifts can significantly impact preparation time and, consequently, the cost.
- Documentation Required: The more extensive and organized your financial records and gift details are, the less time the preparer may need to spend gathering information.
- Professional Expertise: Highly experienced tax professionals or those specializing in estate and gift tax planning might charge higher rates.
- Geographic Location: Fees can vary by region, often reflecting the cost of living and market rates for professional services in a particular area.
Average Tax Preparation Costs for Various Forms
To provide context, here's a comparison of average costs for various tax forms:
| Tax Form | Average Cost per Form | Average Hourly Fees |
|---|---|---|
| Form 709 (Gift Tax) | $421 | $178.29 |
| Form 1041 (Fiduciary) | $576 | $172.66 |
| Form 1065 (Partnership) | $733 | $177.29 |
| Form 990 (Exempt Organization) | $735 | $171.48 |
Note: These figures represent average costs and can vary.
Choosing a qualified tax professional to prepare your Form 709 can ensure accuracy and compliance with complex gift tax regulations, potentially saving you from future IRS issues. When seeking a preparer, it's advisable to get a quote based on your specific situation.
