This year Nathan transferred $7 million to an irrevocable trust established for the benefit of his nephew.
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Question:
This year Nathan transferred $7 million to an irrevocable trust established for the benefit of his nephew. The trustee is directed to accumulate income for the next 5 years before distributing the trust corpus to Nathan's nephew. In past years Nathan has made taxable gifts of $6 million and used an applicable credit on an exemption equivalent of $5 million. What amount of gift tax, if any, must Nathan remit? Question 14 options:
A) $345,450.
B) $320,000.
C) $800,000.
D) zero - there is a $11.18 million exemption equivalent. E) None of the choices are correct. The amount of tax cannot be estimated without the use of a tax rate schedule
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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