Assume that your single aunt Zelda becomes very ill and makes a gift of $ 1 3
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Question:
Assume that your single aunt Zelda becomes very ill and makes a gift of $ to you.
Assuming that she has not made any previous taxable gifts, calculate the gift tax that she will owe:
Total Current Year Gifts
Less Annual Exclusions and deductions for martial and charitable gifts
CLUE: LESS the total exclusions & deductions ex Annual exclusions, marital deduction, charitable deduction, etc
Total Current Year Taxable Gifts
Plus Taxable Gifts From Prior Years
CLUE: PLUS the total taxable gifts from PRIOR calendar years
Total Taxable Gifts
CALCULATE Tax on Total Taxable Gifts
CLUE: Tax on the total gifts current year and prior years combined using the current tax rate schedule
Tax on Prior Gifts
CLUE: Tax on the prior year gifts ONLY based on current tax rate
Balance
CLUE: BALANCE of Gift Tax for Current Year
Applicable Credit
Applicable Credit Used in Prior Years
Balance Subtract from
Applicable Credit smaller of or
Total Gift Tax
CLUE: Total Gift Tax
NOTE: When Answering, number for ALL answers, USE tax laws.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: