Using property she inherited, Lei makes a $2023$ gift of $$16,200,000$ to her adult daughter, Doris. Neither Lei nor her spouse, Greg, have made any prior taxable gifts.

Assuming that a flat $40\%$ tax rate applies, determine the Federal gift tax liability if $($a$)$ the election to split gifts is not made and $($b$)$ the election to split gifts is made. $($c$)$ What are the tax savings from making the election?

The unified transfer tax exclusion amount for $2023$ is $$12,920,000.$

If an amount is zero, enter $"0".$Problem $18-35($LO$.5)$

Using property she inherited, Lei makes a $2023$ gift of $$16,200,000$ to her adult daughter, Doris. Neither Lei nor her spouse, Greg, have

made any prior taxable gifts.

Assuming that a flat $40\%$ tax rate applies, determine the Federal gift tax liability if $($a$)$ the election to split gifts is not made and $($b$)$ the

election to split gifts is made. $($c$)$ What are the tax savings from making the election?

The unified transfer tax exclusion amount for $2023$ is $$12,920,000.$

If an amount is zero, enter $"0".$

a$.$ If the election to split gifts is not made, the taxable gift is $${?}_{{?}_{{?}_{?}}{?}_{{?}_{?}}{?}_{{?}_{?}}\text{a}\text{n}\text{d}\text{g}\text{i}\text{f}\text{t}\text{t}\text{a}\text{x}\text{d}\text{u}\text{e}on\text{t}\text{h}\text{e}\text{g}\text{i}\text{f}\text{t}is}$$${?}_{{?}_{{?}_{?}}{?}_{{?}_{?}}{?}_{{?}_{?}}}$

$b.If$ the election $to$ split gifts $is$ made, then the taxable gift from Lei $is$ $${?}_{{?}_{{?}_{?}}{?}_{{?}_{?}}{?}_{a}nd\text{f}\text{r}\text{o}\text{m}\text{G}\text{r}\text{e}\text{g}is}$$${?}_{{?}_{{?}_{?}}{?}_{{?}_{?}}{?}_{{?}_{?}}}$

Gift tax due from Lei $is$ $$0$

and from Greg is $$0$

c$.$ The tax savings from making the election is $