Banele had a taxable estate of $18.0 million when they died this year. Calculate the amount of estate tax due (if any) under the following alternatives. (Refer to Exhibit 25-1 and Exhibit 25-2.) Note: Enter your answers in dollars and not in millions of dollars. a. Banele's prior taxable gifts consist of a taxable gift of $1 million in 2005. Estate tax due b. Banele's prior taxable gifts consist of a taxable gift of $1.5 million in 2005. Estate tax due 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 1,000,000 EXHIBIT 25-2 The Exemption Equivalent / Applicable Exclusion Amount 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 2020 11,580,000 11,580,000 2021 11,700,000 11,700,000 2022 12,060,000 12,060,000 2023 12,920,000 12,920,000 2024 13,610,000 13,610,000

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 55P

Related questions

Question

Banele had a taxable estate of $18.0 million when they died this year.

Calculate the amount of estate tax due (if any) under the following alternatives. (Refer to Exhibit 25-1 and Exhibit 25-2.)

Note: Enter your answers in dollars and not in millions of dollars.

a. Banele's prior taxable gifts consist of a taxable gift of $1 million in 2005.

Estate tax due ______

b. Banele's prior taxable gifts consist of a taxable gift of $1.5 million in 2005.

Estate tax due ______

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	1,000,000

EXHIBIT 25-2 The Exemption Equivalent / Applicable Exclusion Amount