In 2010 Casey made a taxable gift of $5 million to both Stephanie and Linda (a total
Question:
In 2010 Casey made a taxable gift of $5 million to both Stephanie and Linda (a total of $10 million in taxable gifts). Calculate the amount of gift tax due this year and Casey's unused exemption equivalent under the following alternatives.
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.
b. This year Casey made a taxable gift of $5 million to Stephanie. Casey is not married, and the 2010 gift was the only other taxable gift he has ever made.
c. This year Casey made a gift worth $5 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.
Step by Step Answer:
a Assuming Casey was unmarried in 2010 Casey would have used 1 million of his exemption equivalent with the 2010 gift and paid tax on the remaining taxable gift of 9 million In 2014 Casey would have a...View the full answer
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
