In 2010 Casey made a taxable gift of $5 million to both Stephanie and Linda (a total of $10 million in taxable gifts). Calculate the amount of gift tax due this year and Casey’s unused exemption equivalent under the following alternatives. 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. What's the gift tax due and the unused exemption equivalent?
b. This year Casey made a taxable gift of $5 million to Stephanie. Casey is not married, and the 2010 gift was the only other taxable gift he has ever made. What's the gift tax due and the unused exemption equivalent?
c. This year Casey made a gift worth $5 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.
TAX BASE EQUAL NOT TENTATIVE OF AMOUNT
TO OR OVER OVER TAX PLUS 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
750,000 100,000 248,300 39 750,000
1,000,000 345,800 40 1,000,000
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