Question
EXHIBIT 25-1 Unified Transfer Tax Rates* Not Over $10,000 20,000 Tax Base Equal to or Over...
![Check my worl Required information [The following information applies to the questions displayed below.] Part 1 of 3 10 point](https://i.imgur.com/9HtELYt.png)
EXHIBIT 25-1 Unified Transfer Tax Rates* Not Over $10,000 20,000 Tax Base Equal to or Over $ 0 10,000 20,000 40,000 60,000 80,000 Plus 18% 20 22 of Amount Over $ 0 10,000 40,000 20,000 24 Tentative Tax $ 0 1,800 3,800 8,200 13,000 18,200 23,800 38,800 70,800 155,800 248,300 345,800 40,000 60,000 80,000 100,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 100,000 150,000 150,000 250,000 1 34 250,000 500,000 37 500,000 750,000 39 750,000 1,000,000 1,000,000 40 *The applicable credit and exemption is zero for estates that opted out of the estate tax in 2010.
EXHIBIT 25-2 The Exemption Equivalent Year of Transfer Gift Tax 1986 $500,000 1987-1997 1998 600,000 625,000 650,000 1999 2000–2001 2002–2003 2004-2005 2006–2008 2009-2010* Estate Tax $500,000 600,000 625,000 650,000 675,000 1,000,000 1,500,000 2,000,000 3,500,000 5,000,000 5,120,000 5,250,000 5,340,000 5,430,000 5,450,000 5,490,000 11,180,000 11,400,000 2011 675,000 1,000,000 1,000,000 1,000,000 1,000,000 5,000,000 5,120,000 5,250,000 5,340,000 5,430,000 5,450,000 5,490,000 11,180,000 11,400,000 2012 2013 2014 2015 2016 2017 2018 2019 *The applicable credit and exemption is zero for taxpayers who opt out of the estate tax in 2010.
Check my worl Required information [The following information applies to the questions displayed below.] Part 1 of 3 10 points In 2010 Casey made a taxable gift of $5.6 million to both Stephanie and Linda (a total of $11.2 million in taxable gifts). Calculate the amount of gift tax due this year and Casey's unused exemption equivalent under the following alternatives. (Refer to Exhibit 25-1 and Exhibit 25-2.) (Enter your answers in dollars, not millions of dollars. Leave no answer blank. Enter zero if applicable.) eBook Print a. This year Casey made a taxable gift of $1 million to Stephanie. Casey is not married, and the 2010 gift was the only other taxable gift he has ever made. References Gift tax due Unused exemption equivalent
b. This year Casey made a taxable gift of $15.6 million to Stephanie. Casey is not married, and the 2010 gift was the only other taxable gift he has ever made. Gift tax due Unused exemption equivalent
c. This year Casey made a gift worth $15.6 million to Stephanie. Casey is married to Helen in a common-law state, and the 2010 gift was the only other taxable gift he or Helen has ever made. Casey and Helen elect to gift split. Casey's gift tax due Casey's unused exemption equivalent Helen's gift tax due Helen's unused exemption equivalent
Answers
)
Taxable Gift $11,200,000
Less: Annual exclusion $14,000 per donee -$28,000
Current taxable gifts $11172,000
Prior Taxable Gifts $0
Cumulative gifts $11172000
less: Tax on cumulative gifts 40% -$4468800
Less: current tax on prior taxable gifts 0
Tax on current taxable gifts $6703200
unified tax credit $5,430,000
Less: unified tax credit used previously 0
Unused unified credit -$5,430,000
Gift tax due in 2015 $1273200
Alternative 1
Taxable Gift $1,000,000
Less: Annual exclusion $14,000 per donee -$14,000
Current taxable gifts $986,000
Prior Taxable Gifts $0
Cumulative gifts $986,000
less: Tax on cumulative gifts 40% -$394,400
Less: current tax on prior taxable gifts 0
Tax on current taxable gifts $591,600
unified tax credit $5,430,000
Less: unified tax credit used previously 0
Unused unified credit -$5,430,000
Remained unified credit -$4,838,400
Alternative 2
Taxable Gift $15,600,000
Less: Annual exclusion $14,000 per donee -$14,000
Current taxable gifts $15586000
Prior Taxable Gifts $0
Cumulative gifts $15586000
less: Tax on cumulative gifts 40% -$6234400
Less: current tax on prior taxable gifts 0
Tax on current taxable gifts $9351600
unified tax credit $5,430,000
Less: unified tax credit used previously 0
Unused unified credit -$5,430,000
Remained unified credit $3921600
Alternative 3
Taxable Gift $15,600,000
Less: Annual exclusion gift splitting $28,000 per donee -$28,000
Current taxable gifts $15572000
Prior Taxable Gifts $0
Cumulative gifts $15572000
less: Tax on cumulative gifts 40% -$6228800
Less: current tax on prior taxable gifts 0
Tax on current taxable gifts $9343200
unified tax credit $5,430,000
Less: unified tax credit used previously 0
Unused unified credit -$5,430,000
Remained unified credit $3913200
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