Exercise 27-18 (Algorithmic) (LO. 3) Elizabeth made taxable gifts of $6,600,000 in 2019 and $8,580,000 in 2021. She paid no gift tax on the 2019 transfer.. On what amount is the Federal gift tax computed for the 2021 gift? Feedback I Check My Work x Like the income tax, which uses taxable income (not gross income) as a tax base, the gift tax usually does not apply to the full amount of the gift. Deductions and the annual exclusion may be allowed to arrive at an amount called the taxable gift.