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In: Accounting

In 2010 Casey made a taxable gift of $6.8 million to both Stephanie and Linda (a total of $13.6 million in taxable gifts).

In 2010 Casey made a taxable gift of $6.8 million to both Stephanie and Linda (a total of $13.6 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.)

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.


Gift tax due

Unused exemption equivalent

Solutions

Expert Solution

Answer is attached below

I have taken 2019 Gift Tax Exemption Equivalent bcz you have not mentioned the year. You can change according to your year mentioned. Comment below, if in case of any other year, then, I will take that figure.

I have also assumed that maximum Tax rate in the current year is 40%.

ekkarill92 answered 1 year ago
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