Question

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.)

c. This year Casey made a gift worth $16.8 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

     

Answer 1

Answer :According to given data ,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.
1. Taxable Gift(TG) is = $13,60,0000
low:- Annual exclusion per donee= ($28000)
Current TG= $13,57,2000
Prior TG= 0
Cumulative Gifts= $13,57,2000
LOW:- Tax on cumulative gifts @40%= $5428800
LOW:- Tax on prior taxable gifts= 0
Tax on current TG= $8143200
LOW:- Unused unified credit= $54,30,000
Gift Tax due= $2713200
c. This year Casey made a gift worth $16.8 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 ,
TG= $16,80,0000
Less:- Annual exclusion per done= ($14000)
Current TG= $16,78,6000
Prior TG= 0
Cumulative Gifts= $16,78,6000
LOW:- Tax on cumulative gifts @40%= $6714400
LOW:- Tax on prior TG= 0
Tax on current TG= $10071600
LOW:- Unused unified credit= $54,30,000
Remained unified credit= $4641600