When Yakov Tokarev died in 2012, he left an estate valued at $25,000,000. His trust directed distribution as follows: $400,000 in charitable deductions ($75,000 to the local hospital plus $325,000 to his alma mater), and the remainder to his four adult children. Death-related costs were $9,500 for funeral expenses, and $150,000 in administrative expenses ($70,000 paid to attorneys, $20,000 pald to accountants, and $50,000 paid to the trustee of his living trust. In addition, there were debts of $850,000 Use the following dropdown menus to obtain the relevant tax schedules and credits: Exhibits - Tax schedules and credits Exhibit 15.7 -- Unified Credits and Applicable Exclusion Amounts for Estates and Girls Exhibit 15.8 -- Fodern Unted Transfer Tax Rates: Year 2008 2009 2010 Applicable Exclusion Amount- Estates $2,000,000 $3,500,000 Unified Tax Credit Gifts $36,800 $345,800 Applicable Exclusion Amount -Gifts $1,000,000 $1,000,000 $1,000,000 $330,800 2011 Unified Tax Credit- Estates $780,800 $1,455,800 Estate tax repealed for 2010 $1,730,800 $1,772,800 $2,045,800 $2,081,800 $2,117,800 $2,125,800 $2,141,800 54.417.800 2012 2013 2014 $5,000,000 $5,120,000 $5,250,000 $5,340,000 55.430,000 $5,340,000 $5,490,000 $11,180,000 $5,000,000 $5,120,000 $5,250,000 $5,340,000 $5,430,000 2015 $1,730,800 $1,772,800 $2,045,800 $2,081,800 $2,117,800 $2,125,800 $2,141,800 $4,417,800 2016 2017 2018 $5,340,000 $5,490,000 $11,180,000 Use the following worksheet to calculate the federal estate tax due on Yakov Tokarev's estate. (Hint: Enter a value of $0 for any line that does not apply. Use Exhibit 15.7 to calculate the tentative tax. Use Exhibit 15.8 to determine the appropriate unified tax credit.) Total Amount Computing Federal Estate Tax Due Namet Yakov Tokarev Date: 11/30/2012 Line Computation Item Amount 1 Gross estate 2 Subtract sum oft (a) Funeral expenses $ (b) Administrative expenses 5 (c) Debts S (d) Other expenses 10.00 Total: 3 Result Adjusted grous estate 4 Subtract sum of (a) Mantal deduction $0.00 (b) Charitable deduction Total 5 Result: Taxablette 6 Add Adjusted taxable gifts (post-1976) 7 Resit Estate tax base 8 Comput: Tentative tax on estate tax base 9 Subtract sum of (a) Gift tax payable on post-1976 gifts 30.00 (b) Unified tax credit S Total 10 Result Total estate taxes 11 Sutract: Other credits 12 Result Federal estate tax due S | 'T IT (0.00) and credits Exhibit 15.7 Unified Credits and Applicable Exclusion Amounts for Estates and Gifts: Exhibit 15.8 - Federal Unified Tr Tentative Tax + Percent On Excess Over Base Amount $0 1,800 20% 3,800 22% $10,000 20,000 40,000 60,000 8,200 Taxable Estate Value More Than But Not More Than $0 10,000 10,000 20,000 20,000 40,000 40,000 60,000 60,000 80,000 80,000 100,000 100,000 150,000 150,000 250,000 250,000 500,000 500,000 750,000 750,000 1,000,000 1,000,000 24% 13,000 26% 18,200 28% 30% 32% 23,800 38,800 70,800 155,800 248,300 34% 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 37% 39 345,800 40 Source: Internal Revenue Code, Section 2001 When Yakov Tokarev died in 2012, he left an estate valued at $25,000,000. His trust directed distribution as follows: $400,000 in charitable deductions ($75,000 to the local hospital plus $325,000 to his alma mater), and the remainder to his four adult children. Death-related costs were $9,500 for funeral expenses, and $150,000 in administrative expenses ($70,000 paid to attorneys, $20,000 pald to accountants, and $50,000 paid to the trustee of his living trust. In addition, there were debts of $850,000 Use the following dropdown menus to obtain the relevant tax schedules and credits: Exhibits - Tax schedules and credits Exhibit 15.7 -- Unified Credits and Applicable Exclusion Amounts for Estates and Girls Exhibit 15.8 -- Fodern Unted Transfer Tax Rates: Year 2008 2009 2010 Applicable Exclusion Amount- Estates $2,000,000 $3,500,000 Unified Tax Credit Gifts $36,800 $345,800 Applicable Exclusion Amount -Gifts $1,000,000 $1,000,000 $1,000,000 $330,800 2011 Unified Tax Credit- Estates $780,800 $1,455,800 Estate tax repealed for 2010 $1,730,800 $1,772,800 $2,045,800 $2,081,800 $2,117,800 $2,125,800 $2,141,800 54.417.800 2012 2013 2014 $5,000,000 $5,120,000 $5,250,000 $5,340,000 55.430,000 $5,340,000 $5,490,000 $11,180,000 $5,000,000 $5,120,000 $5,250,000 $5,340,000 $5,430,000 2015 $1,730,800 $1,772,800 $2,045,800 $2,081,800 $2,117,800 $2,125,800 $2,141,800 $4,417,800 2016 2017 2018 $5,340,000 $5,490,000 $11,180,000 Use the following worksheet to calculate the federal estate tax due on Yakov Tokarev's estate. (Hint: Enter a value of $0 for any line that does not apply. Use Exhibit 15.7 to calculate the tentative tax. Use Exhibit 15.8 to determine the appropriate unified tax credit.) Total Amount Computing Federal Estate Tax Due Namet Yakov Tokarev Date: 11/30/2012 Line Computation Item Amount 1 Gross estate 2 Subtract sum oft (a) Funeral expenses $ (b) Administrative expenses 5 (c) Debts S (d) Other expenses 10.00 Total: 3 Result Adjusted grous estate 4 Subtract sum of (a) Mantal deduction $0.00 (b) Charitable deduction Total 5 Result: Taxablette 6 Add Adjusted taxable gifts (post-1976) 7 Resit Estate tax base 8 Comput: Tentative tax on estate tax base 9 Subtract sum of (a) Gift tax payable on post-1976 gifts 30.00 (b) Unified tax credit S Total 10 Result Total estate taxes 11 Sutract: Other credits 12 Result Federal estate tax due S | 'T IT (0.00) and credits Exhibit 15.7 Unified Credits and Applicable Exclusion Amounts for Estates and Gifts: Exhibit 15.8 - Federal Unified Tr Tentative Tax + Percent On Excess Over Base Amount $0 1,800 20% 3,800 22% $10,000 20,000 40,000 60,000 8,200 Taxable Estate Value More Than But Not More Than $0 10,000 10,000 20,000 20,000 40,000 40,000 60,000 60,000 80,000 80,000 100,000 100,000 150,000 150,000 250,000 250,000 500,000 500,000 750,000 750,000 1,000,000 1,000,000 24% 13,000 26% 18,200 28% 30% 32% 23,800 38,800 70,800 155,800 248,300 34% 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 37% 39 345,800 40 Source: Internal Revenue Code, Section 2001