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Required information The following information applies to the questions displayed below) In 2010 Casey made a taxable gift of $5.9 million to both Stephanie and

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Required information The following information applies to the questions displayed below) In 2010 Casey made a taxable gift of $5.9 million to both Stephanie and Linda (a total of $11.8 million in taxable gifts). Calculate the amount of gift tax due this year and Casey's unused exemption equivalent under the following alternatives. (Refer to Exhibit 25-1 and Exhibit 25-2) (Enter your answers in dollars, not millions of dollars. Leave no answer blank. Enter zero if applicable.) c. This year Casey made a gift worth $15.9 million to Stephanie. Casey is married to Helen in a common-law state, and the 2010 gift was the only other taxable gift he or Helen has ever made. Casey and Helen elect to gift split Answer is not complete. Casey's gift tax due Casey's unused exemption equivalent Helen's gift tax due Holen's unused exemption equivalent Plus 18% 20 EXHIBIT 25-1 Unified Transfer Tax Rates* Tax Base Equal to or Over Not Over $ 0 $10,000 10,000 20,000 20,000 40,000 40,000 60,000 60,000 80,000 80,000 100,000 100,000 150,000 150,000 250,000 250,000 500,000 500,000 750,000 750,000 1,000,000 1,000,000 Tentative Tax $ 0 1,800 3,800 8,200 13,000 18,200 23,800 38,800 70.800 155,800 248,300 345,800 of Amount Over $ 0 10,000 20.000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 39 40 The applicable credit and exemption is zero for estates that opted out of the estate tax in 2010. EXHIBIT 25-2 The Exemption Equivalent Gift Tax Year of Transfer 1986 1987-1997 1998 $500,000 600.000 625.000 1999 2000-2001 20022003 20042005 20062008 2009-2010* 2011 2012 2013 2014 2015 2016 2017 2018 2019 650,000 675,000 1,000,000 1,000,000 1,000,000 1,000,000 5,000,000 5,120,000 5,250,000 5,340,000 5,430,000 5,450,000 5,490,000 11,180,000 11,400,000 Estate Tax $500,000 600,000 625,000 650,000 675,000 1,000,000 1,500,000 2,000,000 3,500,000 5,000,000 5,120,000 5,250,000 5,340,000 5,430,000 5,450,000 5,490,000 11,180,000 11,400,000 The applicable credit and exemption is zero for taxpayers who opt out of the estate tax in 2010. Required information The following information applies to the questions displayed below) In 2010 Casey made a taxable gift of $5.9 million to both Stephanie and Linda (a total of $11.8 million in taxable gifts). Calculate the amount of gift tax due this year and Casey's unused exemption equivalent under the following alternatives. (Refer to Exhibit 25-1 and Exhibit 25-2) (Enter your answers in dollars, not millions of dollars. Leave no answer blank. Enter zero if applicable.) c. This year Casey made a gift worth $15.9 million to Stephanie. Casey is married to Helen in a common-law state, and the 2010 gift was the only other taxable gift he or Helen has ever made. Casey and Helen elect to gift split Answer is not complete. Casey's gift tax due Casey's unused exemption equivalent Helen's gift tax due Holen's unused exemption equivalent Plus 18% 20 EXHIBIT 25-1 Unified Transfer Tax Rates* Tax Base Equal to or Over Not Over $ 0 $10,000 10,000 20,000 20,000 40,000 40,000 60,000 60,000 80,000 80,000 100,000 100,000 150,000 150,000 250,000 250,000 500,000 500,000 750,000 750,000 1,000,000 1,000,000 Tentative Tax $ 0 1,800 3,800 8,200 13,000 18,200 23,800 38,800 70.800 155,800 248,300 345,800 of Amount Over $ 0 10,000 20.000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 39 40 The applicable credit and exemption is zero for estates that opted out of the estate tax in 2010. EXHIBIT 25-2 The Exemption Equivalent Gift Tax Year of Transfer 1986 1987-1997 1998 $500,000 600.000 625.000 1999 2000-2001 20022003 20042005 20062008 2009-2010* 2011 2012 2013 2014 2015 2016 2017 2018 2019 650,000 675,000 1,000,000 1,000,000 1,000,000 1,000,000 5,000,000 5,120,000 5,250,000 5,340,000 5,430,000 5,450,000 5,490,000 11,180,000 11,400,000 Estate Tax $500,000 600,000 625,000 650,000 675,000 1,000,000 1,500,000 2,000,000 3,500,000 5,000,000 5,120,000 5,250,000 5,340,000 5,430,000 5,450,000 5,490,000 11,180,000 11,400,000 The applicable credit and exemption is zero for taxpayers who opt out of the estate tax in 2010

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