eBook Tax Drill - Gift Tax Computation In 2021, Alejandro made a gift of $4,000,000 to each of his three sons in 2021. He has made no previous gifts. What is the amount of his taxable gifts and the gift tax? The amount of Alejandro's net taxable gifts (the amount the gift tax is based on) is $ 310,000 X. Feedback Check My Work The gift tax is cumulative in effect. Because this means that prior transfers will again be subject to tax, a credit is allowed for the taxes previously incurred. However, the amount of the credit allowed is based on the rates currently in effect.