Question

Rufina died in 2007, She left her $3,700,000 estate, less debts and expenses of $300,000, to her 2 children. In 2000, she had given one child stock worth $840,000 and the other child bonds worth $760,000, paying the gift taxes in the amount $? Assuming her estate of domicile had no death tax, what is the federal estate tax?

Answer 1

Solution:

Given data,

Rufina died in 2007, She left her $3,700,000 estate, less debts and expenses of $300,000, to her 2 children. In 2000, she had given one child stock worth $840,000 and the other child bonds worth $760,000.

Now solution:

Net taxable Estate for 2007

Details		Amount($)
Estate		$$3,700,000
Add:
child bonds	$760,000
child stock	$840,000	$1,600,000
		$5,300,000
Less:
Expenses and debts		($300,000)
Net taxable estate		$5,000,000

1. For year 2007, lifetime exemption is $2,000,000,

And tax rate is 45%

= $5,000,000 - $2,000,000

= $3,000,000

Federal tax rate = $3,000,000 * 45%

= $1,350,000

Federal tax rate =  $1,350,000

Federal tax rate

$1,350,000

.

2.Where concerning 2018, life time exception is $11.2 million, impose rate is 40%, taxable estate value is inside exclusion, federal estate tax due is $0.

federal estate tax due is $0.