9. Computing the federal transfer tax- Practice 2 Aa Aa Victor Fitzgerald died in 2012, leaving an estate of $24,000,000. Victor's wife died in 2009. In 2009, Victor gave his son property that resulted in a taxable gift of $5,000,000 and upon which Victor paid $1,100,000 in transfer taxes Victor had made no other taxable gifts during his life. Victor's will provided a charitable bequest of $750,000 to a museum of natural history Use the following worksheet and Exhibits 15.7 and 15.8 to determine the federal transfer tax on Victor Fitzgerald's estate. Enter a value of $0 for any line that does not apply. Computing Federal Estate Tax Due Name: Victor Fitzgerald Line Computation Date: 11/30/2012 Item Amount Total Amount Gross estate 2 Subtract sum of:(a) Funeral expenses (b) Administrative expenses (c) Debts (d) Other expenses Total: Result: Adjusted gross estate (a) Marital deduction (b) Charitable deduction Subtract sum of: Total: Result: Add Result: Compute: Subtract sum of: Taxable estate Adjusted taxable gifts (post-1976) Estate tax base Tentative tax on estate tax base (a) Gift tax payable on post-1976 gifts (b) Unified tax creditb 5 Total: Assignment Chapter 15- Preserving Your Estate Computing Federal Estate Tax Due Name: Victor Fitzgerald Date: 11/30/2012 Line Computation Item Amount Total Amount Gross estate (a) Funeral expenses (b) Administrative expenses (c) Debts (d) Other expenses Subtract sum of: Total: Result: Adjusted gross estate Subtract sum of: (a) Marital deduction (b) Charitable deduction Total: Result: Add Result: Compute: 9 Subtract sum of:(a) Gift tax payable on post-1976 Taxable estate Adjusted taxable gifts (post-1976) Estate tax base Tentative tax on estate tax base 6 8 9 Subtract sum of(a) Gift tax payable on post-1976 gifts (b) Unified tax credit Total: 10 Result: Subtract Result: Total estate taxes Other credits Federal estate tax due 12 use Exhibit 15.7 to calculate the tentative tax. buse Exhibit 15.8 to determine the appropriate unified tax credit use the following dropdown menus to obtain the relevant tax schedules and credits: Exhibits Tax schedules and credits (b) Unified tax credit Total: Result: Subtract: Result: 10 Total estate taxes Other credits Federal estate tax due 12 "Use Exhibit 15.7 to caloulate the tentative tax. Use Exhibit 15.8 to determine the appropriate unified tax credit. Use the following dropdown menus to obtain the relevant tax schedules and credits: Exhibit 15.7 Federal Unified Transfer Tax Rates Taxable Estate Value Tentative Tax More Than But Not More Than Base Amount + Percent On Excess over $0 10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 1,800 3,800 8,200 13,000 18,200 23,800 38,800 70,800 155,800 2 0% 22% 24% 26% 28% 30% 32% 34% 37% $10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 (b) Unified tax creditb Total: 10 11 12 Result: Subtract: Result: Total estate taxes Other credits Federal estate tax due "Use Exhibit 15.7 to calculate the tentative tax. bUse Exhibit 15.8 to determine the appropriate unified tax credit. Use the following dropdown menus to obtain the relevant tax schedules and credits: Exhibit 15.8- Unified Credits and Applicable Exclusion Amounts for Estates and GiftsX Unified Tax Credit-Estates Applicable Exclusion Amount-Estates Unified Tax Credit-Gifts Applicable Exclusion Amount-Gifts Year $345,800 $345,800 $345,800 $345,800 $330,800 $1,730,800 $1,772,800 $2,045,800 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $5,000,000 $5,120,000 $5,250,000 $2,000,000 $2,000,000 $2,000,000 $3,500,000 2006 2007 2008 2009 2010 2011 2012 2013 $780,800 $780,800 $780,800 $1,455,800 Estate tax repealed for 2010 $1,730,800 $1,772,800 $2,045,800 $5,000,000 $5,120,000 $5,250,000