Required information [The following information applies to the questions displayed below.] In 2010 Casey made a taxable gift of $5.3 million to both Stephanie and Linda (a total of $10.6 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.) a. This year Casey made a taxable gift of $1 million to Stephanie. Casey is not married, and the 2010 gift was the only other taxable gift he has ever made. $ 0 Gift tax due Unused exemption equivalent b. This year Casey made a taxable gift of $15.3 million to Stephanie. Casey is not married, and the 2010 gift was the only other taxable gift he has ever made. Gift tax due Unused exemption equivalent $ 0 c. This year Casey made a gift worth $15.3 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. $ 0 Casey's gift tax due Casey's unused exemption equivalent Helen's gift tax due Helen's unused exemption equivalent 0 EXHIBIT 25-1 Unified Transfer Tax Rates* Not Over Tentative Tax Plus of Amount Over Tax Base Equal to or Over $ 0 $ 0 18% $ 0 20 10,000 20,000 22 24 26 10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 $10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 28 1,800 3,800 8,200 13,000 18,200 23,800 38,800 70,800 155,800 248,300 345,800 30 32 40,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 34 37 39 750,000 1,000,000 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 Year of Transfer Gift Tax Estate Tax 1986 $500,000 1987-1997 $500,000 600,000 625,000 1998 1999 2000-2001 2002-2003 2004-2005 20062008 20092010* 2011 600,000 625,000 650,000 675,000 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 11,400,000 650,000 675,000 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 2012 2013 2014 2015 2016 2017 2018 11,180,000 2019 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 $5.3 million to both Stephanie and Linda (a total of $10.6 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.) a. This year Casey made a taxable gift of $1 million to Stephanie. Casey is not married, and the 2010 gift was the only other taxable gift he has ever made. $ 0 Gift tax due Unused exemption equivalent b. This year Casey made a taxable gift of $15.3 million to Stephanie. Casey is not married, and the 2010 gift was the only other taxable gift he has ever made. Gift tax due Unused exemption equivalent $ 0 c. This year Casey made a gift worth $15.3 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. $ 0 Casey's gift tax due Casey's unused exemption equivalent Helen's gift tax due Helen's unused exemption equivalent 0 EXHIBIT 25-1 Unified Transfer Tax Rates* Not Over Tentative Tax Plus of Amount Over Tax Base Equal to or Over $ 0 $ 0 18% $ 0 20 10,000 20,000 22 24 26 10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 $10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 28 1,800 3,800 8,200 13,000 18,200 23,800 38,800 70,800 155,800 248,300 345,800 30 32 40,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 34 37 39 750,000 1,000,000 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 Year of Transfer Gift Tax Estate Tax 1986 $500,000 1987-1997 $500,000 600,000 625,000 1998 1999 2000-2001 2002-2003 2004-2005 20062008 20092010* 2011 600,000 625,000 650,000 675,000 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 11,400,000 650,000 675,000 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 2012 2013 2014 2015 2016 2017 2018 11,180,000 2019 11,400,000 *The applicable credit and exemption is zero for taxpayers who opt out of the estate tax in 2010