Worksheet Taxable Gifts and Line 4 Worksheet. Summary: These are worksheets for computing the entries regarding taxable gifts to be entered on Form 706, lines 4 and 7.Worksheet Taxable Gifts—Taxable Gifts Reconciliation. (To be used for lines 4 and 7 of the Tax Computation)Note. For the definition of a taxable gift, see section 2503. Follow Form 709. That is, include only the decedent's one-half of split gifts, whether the gifts were made by the decedent or the decedent's spouse. In addition to gifts reported on Form 709, you must include any taxable gifts in excess of the annual exclusion that were not reported on Form 709.

Gifts made after June 6, 1932, and before 1977:

“a. Calendar year or calendar quarter” field “b. Total taxable gifts for period (see Note)” field “1. Total taxable gifts made before 1977” field

Gifts made after 1976:

“c. Taxable amount included in col. b for gifts included in the gross estate” field “d. Taxable amount included in col. b for gifts that qualify for special treatment of split gifts described on page 6” field “e. Gift tax paid by decedent on gifts in col. d” field “f. Gift tax paid by decedent's spouse on gifts in col. c” field 2. Totals for gifts made after 1976: “b. Total taxable gifts for period (see Note)” field “c. Taxable amount included in col. b for gifts included in the gross estate” field “d. Taxable amount included in col. b for gifts that qualify for special treatment of split gifts described on page 6” field “e. Gift tax paid by decedent on gifts in col. d” field “f. Gift tax paid by decedent's spouse on gifts in col. c” field

Line 4 Worksheet--Adjusted Taxable Gifts Made After 1976. 

“1. Taxable gifts made after 1976. Enter the amount from line 2, column b, Worksheet Taxable Gifts” field

“2. Taxable gifts made after 1976 reportable on Schedule G. Enter the amount from line 2, column c, Worksheet Taxable Gifts” field

“3. Taxable gifts made after 1976 that qualify for special treatment. Enter the amount from line 2, column d, Worksheet Taxable Gifts” field

“4. Add lines 2 and 3” field

“5. Adjusted taxable gifts. Subtract line 4 from line 1. Enter here and on line 4 of the Tax Computation of Form 706” field