Question
Banele had a taxable estate of $16.1 million when they died this year. Calculate the amount of estate tax due (if any) under the following
Banele had a taxable estate of $16.1 million when they died this year.
Calculate the amount of estate tax due (if any) under the following alternatives.
EXHIBIT 25-1 Unified Transfer Tax Rates*
Tax Base Equal to or Over | Not Over | Tentative Tax | Plus | of Amount 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 | 1,000,000 | 248,300 | 39 | 750,000 |
1,000,000 | 345,800 | 40 | 1,000,000 |
*The applicable credit and exemption are zero for estates that opted out of the estate tax in 2010.
EXHIBIT 25-2 The Exemption Equivalent / Applicable Exclusion Amount
Year of Transfer | Gift Tax | Estate Tax |
---|---|---|
1986 | $500,000 | $500,000 |
19871997 | 600,000 | 600,000 |
1998 | 625,000 | 625,000 |
1999 | 650,000 | 650,000 |
20002001 | 675,000 | 675,000 |
20022003 | 1,000,000 | 1,000,000 |
20042005 | 1,000,000 | 1,500,000 |
20062008 | 1,000,000 | 2,000,000 |
20092010* | 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 |
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 |
2022 | 12,060,000 | 12,060,000 |
*The estate tax was optional for decedents dying in 2010. In lieu of the estate tax, executors could opt to have the adjusted tax basis of the assets in the gross estate carry over to the heirs of the decedent. The applicable credit and exemption are zero for taxpayers who opt out of the estate tax in 2010.
A. Banele's prior taxable gifts consist of a taxable gift of $1 million in 2005.
B. Banele's prior taxable gifts consist of a taxable gift of $1.5 million in 2005.
C. Banele made a $1 million taxable gift in the year prior to their death.
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