Unused exemption equivalent in taxes problem!

Required information [The following information applies to the questions displayed below.] In 2010 Casey made a taxable gift of $6.3 million to both Stephanie and Linda (a total of $12.6 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. Gift tax due $ Unused exemption equivalent EXHIBIT 25-1 Unified Transfer Tax Rates* Plus 18% Not Over $10,000 20,000 40,000 60,000 20 22 M 80,000 Tax Base Equal to or Over $ 0 10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 100,000 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 28 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 32 150,000 250,000 500,000 750,000 1,000,000 34 37 9 40 3 *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 Estate Tax 1986 1987-1997 1998 Gift Tax $500,000 600,000 625,000 650,000 675,000 1,000,000 1,000,000 1999 20002001 20022003 2004-2005 20062008 2009-2010* $500,000 600,000 625,000 650,000 675,000 1,000,000 1,500,000 2,000,000 3,500,000 1,000,000 1,000,000 2011 5,000,000 2012 5,000,000 5,120,000 5,250,000 5,340,000 2013 2014 2015 5,120,000 5,250,000 5,340,000 5,430,000 5,450,000 5,490,000 11,180,000 11,400,000 2016 5,430,000 5,450,000 5,490,000 11,180,000 11,400,000 2017 2018 2019 *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 $6.3 million to both Stephanie and Linda (a total of $12.6 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. Gift tax due $ Unused exemption equivalent EXHIBIT 25-1 Unified Transfer Tax Rates* Plus 18% Not Over $10,000 20,000 40,000 60,000 20 22 M 80,000 Tax Base Equal to or Over $ 0 10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 100,000 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 28 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 32 150,000 250,000 500,000 750,000 1,000,000 34 37 9 40 3 *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 Estate Tax 1986 1987-1997 1998 Gift Tax $500,000 600,000 625,000 650,000 675,000 1,000,000 1,000,000 1999 20002001 20022003 2004-2005 20062008 2009-2010* $500,000 600,000 625,000 650,000 675,000 1,000,000 1,500,000 2,000,000 3,500,000 1,000,000 1,000,000 2011 5,000,000 2012 5,000,000 5,120,000 5,250,000 5,340,000 2013 2014 2015 5,120,000 5,250,000 5,340,000 5,430,000 5,450,000 5,490,000 11,180,000 11,400,000 2016 5,430,000 5,450,000 5,490,000 11,180,000 11,400,000 2017 2018 2019 *The applicable credit and exemption is zero for taxpayers who opt out of the estate tax in 2010