Roland had a taxable estate of $5 5 million when he died this year Calculate the amount of estate tax due (if any) under the following alternatives (Refer to Exhibit 25 1 and Exhibit 25 2) a Rolands prior taxable gifts consist of a taxable gift of $1 million in 2005 Estate tax due b Rolands prior taxable gifts consist of a taxable gift of $1 5 million in 2005 Estate tax due c Roland made a $1 million taxable gift in the year prior to his death Estate tax due EXHIBIT 25 1 Unified Transfer Tax Rates Tax Base Equal to or Over of Tentative Not Over ax Plus Over 0 $10,000 $ 0 18 $ 0 20,000 40,000 60 000 80,000 100,000 150,000 250,000 500,000 750,000155 10,000 1 800 120 3,800 22 8,20024 13,000 26 18 200 28 23,800 30 38,800 32 70,800 34 800 37 1 000 000 248 30039 345,800 40 10,000 20,000 40,000 60,000 80,000 100,000 150 000 20,000 40 000 60,000 80,000 100,000 150,000 500,000 750,000 1,000,000 500,000 750 000 1,000,000 The applicable credit and exemption is zero for taxpayers who opt out of the eotate tax in 2010

Question

Roland had a taxable estate of $5 5 million when he died this year  Calculate the amount of estate tax due (if any) under the following alternatives   (Refer to Exhibit 25 1 and Exhibit 25 2) a  Rolands prior taxable gifts consist of a taxable gift of $1 million in 2005  Estate tax due        b  Rolands prior taxable gifts consist of a taxable gift of $1 5 million in 2005  Estate tax due        c  Roland made a $1 million taxable gift in the year prior to his death  Estate tax due        EXHIBIT 25 1 Unified Transfer Tax Rates Tax Base Equal to or Over of Tentative Not Over ax Plus Over 0  $10,000 $ 0  18   $ 0 20,000 40,000 60 000 80,000 100,000 150,000 250,000 500,000 750,000155 10,000 1 800 120 3,800 22 8,20024 13,000 26 18 200 28 23,800 30 38,800 32 70,800 34 800 37 1 000 000 248 30039 345,800 40 10,000 20,000 40,000 60,000 80,000 100,000 150 000 20,000 40 000 60,000 80,000 100,000 150,000 500,000 750,000 1,000,000 500,000 750 000 1,000,000 The applicable credit and exemption is zero for taxpayers who opt out of the eotate tax in 2010

Accepted Answer

The Answer is in the image, click to view ...

Question

Roland had a taxable estate of $5.5 million when he died this year. Calculate the amount of estate tax due (if any) under the following

Step by Step Solution

Step: 1

Get Instant Access to Expert-Tailored Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Recommended Textbook for

Making Use Of Clinical Audit A Guide To Practice In The Health Professions

Students also viewed these Accounting questions

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question