Attempts Average 1 9. Computing the federal transfer tax - Practice Blaine Montague died in 2012, leaving an estate of $21,000,000. Bhaine's wife died in 2009. In 2009, Blaine save his son property that resulted in a taxable bit of $4,000,000 and upon which staine paid $950,000 in transfer taxes. Blaine had made no other taxable gifts during his life. Blaine's will provided a charitable bequest of $500,000 to a museum of natural history. Exhibits - Tax schedules and credits Exhot 15.7 - Federal United Transter Tac Rates Einbt 158 -- United Credits and Applicable Exclusion Amounts for Estates and Gifts Taxable Estate Value More Than Tentative Tax Percent But Not More Than Base Amount On Excess Over 50 $0 10,000 20.000 $10,000 1.800 3.800 2055 2295 10.000 20.000 40,000 60,000 80,000 100.000 40,000 60,000 80,000 249 26% 100,000 150.000 250,000 8,209 13,000 13.200 23,800 35,800 70.800 20.000 40,000 80,000 80,000 100.000 150,000 250.000 500,000 150,000 250,000 30% 3295 500,000 345 500,000 155,800 374 1 2 Use the following worksheet and Exhibits !5.7 and 15.8 to determine the federal transfer tax on Blaine Montague's estate. (Hint: Encer a value of so for any leat does not 2001.) Computing Federal Estate Tax Due Date: 11/30/2011 Name: Blaine Amount Total Amount Line Computation Item Gross estate Subtract sum of: (a) Funeral expenses (b) Administrative expenses (c) Debes 5 (4) Other expenses Total: Resu Adjusted gross estate Subtract sur of: (a) Marital deduction (5) Charitable deduction Total: Result: Taxable estate $ Add Adjusted taxable gifts (post-1976) Result: Estate tax base Computer Tentative tax on estate tax base" Subtract sum of: (a) Get tax payable on post-1976 pits s (0) Unified tax credit $ 3 4 5 6 7 8 10 11 5 Subtract: Pest: Total estate taxes Other credits Federal estate tax dor 5 12