3,800 22 20,000 40,000 60,000 8,200 24 40,000 60,000 80,000 13,000 26 60,000 80,000 100,000 18,200 28 80,000 100,000 150,000 23,800 30 100,000 150,000 250,000 38,800 32 150,000 250,000 500,000 70,800 34 250,000 500,000 750,000 155,800 37 500,000 750,000 1,000,000 248,300 39 750,000 1,000,000 345,800 40 1,000, EXHIBIT 25-2 The Exemption Equivalent Year of Transfer Gift Tax Estate Tax 1986 $500,000 $500,000 1987–1997 600,000 600,000 1998 625,000 625,000 1999 650,000 650,000 2000–2001 675,000 675,000 2002–2003 1,000,000 1,000,000 2004–2005 1,000,000 1,500,000 2006–2008 1,000,000 2,000,000 2009–2010* 1,000,000 3,500,000 2011 5,000,000 5,000,000 2012 5,120,000 5,120,000 2013 5,250,000 5,250,000 2014 5,340,000 5,340,000 2015 5,430,000 5,430,000 2016 5,450,000 5,450,000 2017 5,490,000 5,490,000 2018 11,180,000 11,180,000 2019 11,400,000 11,400,000
3,800 22 20,000 40,000 60,000 8,200 24 40,000 60,000 80,000 13,000 26 60,000 80,000 100,000 18,200 28 80,000 100,000 150,000 23,800 30 100,000 150,000 250,000 38,800 32 150,000 250,000 500,000 70,800 34 250,000 500,000 750,000 155,800 37 500,000 750,000 1,000,000 248,300 39 750,000 1,000,000 345,800 40 1,000, EXHIBIT 25-2 The Exemption Equivalent Year of Transfer Gift Tax Estate Tax 1986 $500,000 $500,000 1987–1997 600,000 600,000 1998 625,000 625,000 1999 650,000 650,000 2000–2001 675,000 675,000 2002–2003 1,000,000 1,000,000 2004–2005 1,000,000 1,500,000 2006–2008 1,000,000 2,000,000 2009–2010* 1,000,000 3,500,000 2011 5,000,000 5,000,000 2012 5,120,000 5,120,000 2013 5,250,000 5,250,000 2014 5,340,000 5,340,000 2015 5,430,000 5,430,000 2016 5,450,000 5,450,000 2017 5,490,000 5,490,000 2018 11,180,000 11,180,000 2019 11,400,000 11,400,000
Chapter19: Family Tax Planning
Section: Chapter Questions
Problem 38P
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Question
EXHIBIT 25-1 Unified Transfer Tax Rates*
| Tax Base Equal to or Over | Not Over | Tentative Tax | Plus | of Amount Over |
|---|---|---|---|---|
| $ 0 | $10,000 | $ 0 | 18% | $ 0 |
| 10,000 | 20,000 | 1,800 | 20 | 10,000 |
| 20,000 | 40,000 | 3,800 | 22 | 20,000 |
| 40,000 | 60,000 | 8,200 | 24 | 40,000 |
| 60,000 | 80,000 | 13,000 | 26 | 60,000 |
| 80,000 | 100,000 | 18,200 | 28 | 80,000 |
| 100,000 | 150,000 | 23,800 | 30 | 100,000 |
| 150,000 | 250,000 | 38,800 | 32 | 150,000 |
| 250,000 | 500,000 | 70,800 | 34 | 250,000 |
| 500,000 | 750,000 | 155,800 | 37 | 500,000 |
| 750,000 | 1,000,000 | 248,300 | 39 | 750,000 |
| 1,000,000 | 345,800 | 40 | 1,000, |
EXHIBIT 25-2 The Exemption Equivalent
| Year of Transfer | Gift Tax | Estate Tax |
|---|---|---|
| 1986 | $500,000 | $500,000 |
| 1987–1997 | 600,000 | 600,000 |
| 1998 | 625,000 | 625,000 |
| 1999 | 650,000 | 650,000 |
| 2000–2001 | 675,000 | 675,000 |
| 2002–2003 | 1,000,000 | 1,000,000 |
| 2004–2005 | 1,000,000 | 1,500,000 |
| 2006–2008 | 1,000,000 | 2,000,000 |
| 2009–2010* | 1,000,000 | 3,500,000 |
| 2011 | 5,000,000 | 5,000,000 |
| 2012 | 5,120,000 | 5,120,000 |
| 2013 | 5,250,000 | 5,250,000 |
| 2014 | 5,340,000 | 5,340,000 |
| 2015 | 5,430,000 | 5,430,000 |
| 2016 | 5,450,000 | 5,450,000 |
| 2017 | 5,490,000 | 5,490,000 |
| 2018 | 11,180,000 | 11,180,000 |
| 2019 | 11,400,000 | 11,400,000 |
*The applicable credit and exemption is zero for taxpayers who opt out of the estate tax in 2010
![tor the work you have completed so far. It does not indicate
D
Required information
The following information applies to the questions splayed below.]
In 2010 Casey made a taxable gift of $6.1 million to both Stephanie and Linda (a total of $12.2 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.)
a. This year Casey made a taxable gift of S1 million to Stephanie. Casey is not married, and the 2010 gift was the only other taxable
he has ever made.
Answer is complete but not entirely correct.
Gift tax due
Unused exemption equivalent
S 11.580.000
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Transcribed Image Text:tor the work you have completed so far. It does not indicate
D
Required information
The following information applies to the questions splayed below.]
In 2010 Casey made a taxable gift of $6.1 million to both Stephanie and Linda (a total of $12.2 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.)
a. This year Casey made a taxable gift of S1 million to Stephanie. Casey is not married, and the 2010 gift was the only other taxable
he has ever made.
Answer is complete but not entirely correct.
Gift tax due
Unused exemption equivalent
S 11.580.000
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2 3
4.
of 7
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