Required Information [The following information applies to the questions displayed below.] In 2010 Casey made a taxable gift of $7.0 million to both Stephanie and Linda (a total of $14.0 million in taxable gifts). Required: 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 $17.0 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. s Casey's gift tax due Casey's unused exemption equivalent Helen's gift tax due Helen's unused exemption equivalent s 0 EXHIBIT 25-1 Unified Transfer Tax Rates* Not Over Plus Tax Base Equal to or Over $ 0 10,000 $10,000 Tentative Tax $ 0 1,800 18% of Amount Over $ 0 10,000 20,000 20 20,000 40,000 3,800 22 20,000 8,200 24 40,000 60,000 60,000 80,000 100,000 40,000 60,000 26 13,000 18.200 80,000 28 80,000 150,000 23.800 30 100,000 100,000 150.000 250,000 38.800 32 150,000 250.000 500,000 70.800 34 750,000 155,800 37 500,000 750,000 250,000 500,000 750,000 1,000,000 39 248,300 345,800 1,000,000 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 Estate Tax Year of Transfer 1986 Gift Tax $500,000 19871997 600.000 1998 625,000 1999 650,000 2000-2001 2002-2003 2004-2005 20062008 2009-2010* 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 2011 $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 11,580,000 11,700,000 2012 2013 2014 2015 2016 2017 2018 5,450,000 5,490,000 11,180,000 11,400,000 11,580,000 11,700,000 2019 2020 2021 *The applicable credit and exemption are 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 $7.0 million to both Stephanie and Linda (a total of $14.0 million in taxable gifts). Required: 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 $17.0 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. s Casey's gift tax due Casey's unused exemption equivalent Helen's gift tax due Helen's unused exemption equivalent s 0 EXHIBIT 25-1 Unified Transfer Tax Rates* Not Over Plus Tax Base Equal to or Over $ 0 10,000 $10,000 Tentative Tax $ 0 1,800 18% of Amount Over $ 0 10,000 20,000 20 20,000 40,000 3,800 22 20,000 8,200 24 40,000 60,000 60,000 80,000 100,000 40,000 60,000 26 13,000 18.200 80,000 28 80,000 150,000 23.800 30 100,000 100,000 150.000 250,000 38.800 32 150,000 250.000 500,000 70.800 34 750,000 155,800 37 500,000 750,000 250,000 500,000 750,000 1,000,000 39 248,300 345,800 1,000,000 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 Estate Tax Year of Transfer 1986 Gift Tax $500,000 19871997 600.000 1998 625,000 1999 650,000 2000-2001 2002-2003 2004-2005 20062008 2009-2010* 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 2011 $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 11,580,000 11,700,000 2012 2013 2014 2015 2016 2017 2018 5,450,000 5,490,000 11,180,000 11,400,000 11,580,000 11,700,000 2019 2020 2021 *The applicable credit and exemption are zero for taxpayers who opt out of the estate tax in 2010