Homework Help is Here – Start Your Trial Now!
Business
Accounting
In 2010 Casey made a taxable gift of $5.7 million to both Stephanie and Linda (a total of $11.4 million in taxable gifts). Required: 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.) 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 has ever made. Gift tax due Unused exemption equivalent

In 2010 Casey made a taxable gift of $5.7 million to both Stephanie and Linda (a total of $11.4 million in taxable gifts). Required: 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.) 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 has ever made. Gift tax due Unused exemption equivalent

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

I need help with unused exemption equivalent 

EXHIBIT 25-2 The Exemption Equivalent EXHIBIT 25-1 Unified Transfer Tax Rates* Year of Transfer Gift Tax Estate Tax Tax Base Equal to or Over Not Over Tentative Tax Plus of Amount Over 1986 $500,000 $500,000 $ 0 $10,000 $ 0 18% $ 0 1987–1997 600,000 600,000 10,000 20,000 1,800 20 10,000 1998 625,000 625,000 20,000 40,000 3,800 22 20,000 40,000 60,000 8,200 24 40,000 1999 650,000 650,000 60,000 80,000 13,000 26 60,000 2000–2001 675,000 675,000 80,000 100,000 18,200 28 80,000 2002–2003 1,000,000 1,000,000 100,000 150,000 23,800 30 100,000 2004–2005 1,000,000 1,500,000 150,000 250,000 38,800 32 150,000 2006–2008 1,000,000 2,000,000 250,000 500,000 70,800 34 250,000 2009-2010* 1,000,000 3,500,000 500,000 750,000 155,800 37 500,000 2011 5,000,000 5,000,000 750,000 1,000,000 248,300 39 750,000 2012 5,120,000 5,120,000 1,000,000 345,800 40 1,000,000 2013 5,250,000 5,250,000 *The applicable credit and exemption are zero for estates that opted out of the estate tax in 2010. 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 *The applicable credit and exemption are zero for taxpayers who opt out of the estate tax in 2010.
Transcribed Image Text:EXHIBIT 25-2 The Exemption Equivalent EXHIBIT 25-1 Unified Transfer Tax Rates* Year of Transfer Gift Tax Estate Tax Tax Base Equal to or Over Not Over Tentative Tax Plus of Amount Over 1986 $500,000 $500,000 $ 0 $10,000 $ 0 18% $ 0 1987–1997 600,000 600,000 10,000 20,000 1,800 20 10,000 1998 625,000 625,000 20,000 40,000 3,800 22 20,000 40,000 60,000 8,200 24 40,000 1999 650,000 650,000 60,000 80,000 13,000 26 60,000 2000–2001 675,000 675,000 80,000 100,000 18,200 28 80,000 2002–2003 1,000,000 1,000,000 100,000 150,000 23,800 30 100,000 2004–2005 1,000,000 1,500,000 150,000 250,000 38,800 32 150,000 2006–2008 1,000,000 2,000,000 250,000 500,000 70,800 34 250,000 2009-2010* 1,000,000 3,500,000 500,000 750,000 155,800 37 500,000 2011 5,000,000 5,000,000 750,000 1,000,000 248,300 39 750,000 2012 5,120,000 5,120,000 1,000,000 345,800 40 1,000,000 2013 5,250,000 5,250,000 *The applicable credit and exemption are zero for estates that opted out of the estate tax in 2010. 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 *The applicable credit and exemption are zero for taxpayers who opt out of the estate tax in 2010.
In 2010 Casey made a taxable gift of $5.7 million to both Stephanie and Linda (a total of $11.4 million in taxable gifts). Required: 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
Transcribed Image Text:In 2010 Casey made a taxable gift of $5.7 million to both Stephanie and Linda (a total of $11.4 million in taxable gifts). Required: 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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Tax Deductions
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS