Qualified Personal Residence Trust
- How does it work?
- What are the key benefits of a QPRT??
- If I have a second home, can I use the QPRT for both homes?
- Is a gift tax return required when a gift is made to a QPRT?
- Are there any other tax benefits offered by a QPRT?
- What If I Die During the QPRT's Term?
- Does my age and the QPRT term affect the tax consequences of the QPRT?
- What if I outlive the QPRT's term and want to continue living in the residence?
- Can the residence be sold while it is in the QPRT?
- Will my children receive the residence with step up in basis at the End of the QPRT Term?
- Do any income tax returns have to be filed in connection with a QPRT?
Is a gift tax return required when a gift is made to a QPRT?
Yes. A Federal Gift Tax Return Form 709 must be filed in the year in which the gift to the QPRT is made. Based on the foregoing example, you would be required to prepare and file a Federal Gift Tax Return to report the gift, which would consume $310,380 of your estate and gift tax credit. Assuming you had not made prior gifts that had consumed the rest of your gift tax credit, no gift tax would be due.