Attempts: Average 1 9. Computing the federal transfer tax . Practice 2 Michael Fernandez died in 2012, leaving an estate of $27,000,000. Michael's wife died in 2009. In 2009, Michael gave his son property that resulted in a taxable oft of $6,000,000 and upon which Michael paid $1,300,000 in transfer taxes, Michael has made no other taxable gifts during his life, Michael's will provided a charitable bequest of $900,000 to his synagogue Exhibits - Tax schedules and credits Exhibt 157 --Federal United Transfer Tax Rates Exhibit 15.3 -- United Credits and Applicable Exclution Amounts for Estates and oito Taxable Estate Value More Than Tentative Tax + Percent But Not More Than Base Amount On Excess Over $0 $0 10,000 20,000 1.800 20% $10,000 10,000 20,000 40,000 40,000 22% 3,800 8,200 13,000 20,000 40,000 60,000 80,000 100,000 60,000 80,000 100,000 24% 26% 28% 60,000 18,200 80,000 30% 100,000 150,000 250,000 500,000 23,800 38,800 150,000 32% 150,000 250,000 34% 250,000 500,000 70,800 155,800 37% 500,000 Exhibits - Tax schedules and credits Exhibit 15,8 -- United Credits and Applicable Butlution Amounts for Estates and Exhibit 157-Federal United Transfer Tax Rates Year 2006 2007 Unified Tax Credit Estates $780,800 $780,800 $780,800 $1,455,800 Estate tax repealed for 2010 Applicable Exclusion Amount- Estates $2,000,000 $2,000,000 $2,000,000 $3,500,000 Unified Tax Credit Gifts $345,800 $345.000 $345,800 $345,800 Applicable Exclusion Amount- Gifts $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 2009 2009 2010 $330,800 2011 2012 $1,730,000 $1,772,000 $2,045,000 $5,000,000 $5,120,000 $5,250,000 $1,730,000 $1.772,900 $2,045,800 $5.000.000 $5.120.000 $3,250,000 2013 Use the following worksheet and Exhibits 15.7 and 15.8 to determine the federal transfer tax on Michael Pemander's estate. (Hint: Entor a value of $0 for any line that does not apply.) Name: Michael Computation Line 1 Total Amount 2 Subtract sum of: 3 Result: Subtract sum of: Computing Federal Estate Tax Due Date: 11/30/2011 Item Amount Gross estate (a) Funeral expenses (b) Administrative expenses (c) Debts $ (d) Other expenses Total Adjusted gross estate (a) Marital deduction (b) Charitable deduction Total: 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 credit $ Total: Total estate taxes 5 Result: 6 Add: 7 Result: $ 8 $ Compute: Subtract sum of: 9 $ 10 Result: 11 Subtract: Other credits Federal estate tax due 12 Result: $ Use Exhibit 15.7 to calculate the tentativa taxi Use Exhibit 15.8 to determine the appropriate unified tax credit Attempts: Average 1 9. Computing the federal transfer tax . Practice 2 Michael Fernandez died in 2012, leaving an estate of $27,000,000. Michael's wife died in 2009. In 2009, Michael gave his son property that resulted in a taxable oft of $6,000,000 and upon which Michael paid $1,300,000 in transfer taxes, Michael has made no other taxable gifts during his life, Michael's will provided a charitable bequest of $900,000 to his synagogue Exhibits - Tax schedules and credits Exhibt 157 --Federal United Transfer Tax Rates Exhibit 15.3 -- United Credits and Applicable Exclution Amounts for Estates and oito Taxable Estate Value More Than Tentative Tax + Percent But Not More Than Base Amount On Excess Over $0 $0 10,000 20,000 1.800 20% $10,000 10,000 20,000 40,000 40,000 22% 3,800 8,200 13,000 20,000 40,000 60,000 80,000 100,000 60,000 80,000 100,000 24% 26% 28% 60,000 18,200 80,000 30% 100,000 150,000 250,000 500,000 23,800 38,800 150,000 32% 150,000 250,000 34% 250,000 500,000 70,800 155,800 37% 500,000 Exhibits - Tax schedules and credits Exhibit 15,8 -- United Credits and Applicable Butlution Amounts for Estates and Exhibit 157-Federal United Transfer Tax Rates Year 2006 2007 Unified Tax Credit Estates $780,800 $780,800 $780,800 $1,455,800 Estate tax repealed for 2010 Applicable Exclusion Amount- Estates $2,000,000 $2,000,000 $2,000,000 $3,500,000 Unified Tax Credit Gifts $345,800 $345.000 $345,800 $345,800 Applicable Exclusion Amount- Gifts $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 2009 2009 2010 $330,800 2011 2012 $1,730,000 $1,772,000 $2,045,000 $5,000,000 $5,120,000 $5,250,000 $1,730,000 $1.772,900 $2,045,800 $5.000.000 $5.120.000 $3,250,000 2013 Use the following worksheet and Exhibits 15.7 and 15.8 to determine the federal transfer tax on Michael Pemander's estate. (Hint: Entor a value of $0 for any line that does not apply.) Name: Michael Computation Line 1 Total Amount 2 Subtract sum of: 3 Result: Subtract sum of: Computing Federal Estate Tax Due Date: 11/30/2011 Item Amount Gross estate (a) Funeral expenses (b) Administrative expenses (c) Debts $ (d) Other expenses Total Adjusted gross estate (a) Marital deduction (b) Charitable deduction Total: 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 credit $ Total: Total estate taxes 5 Result: 6 Add: 7 Result: $ 8 $ Compute: Subtract sum of: 9 $ 10 Result: 11 Subtract: Other credits Federal estate tax due 12 Result: $ Use Exhibit 15.7 to calculate the tentativa taxi Use Exhibit 15.8 to determine the appropriate unified tax credit