Nick Lacoste died in 2012, leaving an estate of $24,000,00o. Nick's wife died in 2009. In...

  
 

Transcribed Image Text:

Nick Lacoste died in 2012, leaving an estate of $24,000,00o. Nick's wife died in 2009. In 2009, Nick gave his son property that resulted in a taxable gift of $5,000,000 and upon which Nick paid $1,100,000 in transfer taxes. Nick had made no other taxable gifts during his life. Nick's will provided a charitable bequest of $750,000 to his church. Exhibits - Tax schedules and credits Exhibit 15.7– Unified Credits and Applicable Exclusion Amounts for Estates and Gifts: Exhibit 15.8 – Federal Unified Transfer Tax Rates: Unified Tax Credit- Applicable Exclusion Amount- Unified Tax Credit- Applicable Exclusion Amount Year Estates Estates Gifts -Gifts 2008 $780,800 $2,000,000 $345,800 $1,000,000 2009 $1,455,800 $3,500,000 $345,800 $1,000,000 2010 Estate tax repealed for $330,800 $1,000,000 2010 2011 $1,730,800 $5,000,000 $1,730,800 $5,000,000 2012 $1,772,800 $5,120,000 $1,772,800 $5,120,000 2013 $2,045,800 $5,250,000 $2,045,800 $5,250,000 2014 $2,081,800 $5,340,000 $2,081,800 $5,340,000 2015 $2,117,800 $5,430,000 $2,117,800 $5,430,000 2016 $2,125,800 $5,340,000 $2,125,800 $5,340,000 2017 $2,141,800 $5,490,000 $2,141,800 $5,490,000 2018 $4,417,800 $11,180,000 $4,417,800 $11,180,000 Use the following worksheet to calculate the federal estate tax due on Nick Lacoste's estate. (Hint: Enter a value of $o for any line that does not apply. Use Exhibit 15.7 to determine the appropriate unified tax credit. Use Exhibit 15.8 to calculate the tentative tax.) Computing Federal Estate Tax Due Name: Nick Date: 11/30/2012 Line Computation Item Amount Total Amount 1 Gross estate Subtract sum of: (a) Funeral expenses $0.00 (b) Administrative expenses $0.00 (c) Debts $0.00 (d) Other expenses $0.00 Total: ($0.00) Result: Adjusted gross estate 4 Subtract sum of: (a) Marital deduction $0.00 (b) Charitable deduction Total: 5. Result: Taxable estate Add: Adjusted taxable gifts (post-1976) 7. Result: Estate tax base 8. Compute: Tentative tax on estate tax base 9. Subtract sum of: (a) Gift tax payable on post-1976 gifts (b) Unifled tax credit Tatal 2 Subtract sum of: (a) Funeral expenses $0.00 (b) Administrative expenses $0.00 (C) Debts $0.00 (d) Other expenses $0.00 Total: ($0.00) Result: Adjusted gross estate 4 Subtract sum of: (a) Marital deduction $0.00 (b) Charitable deduction Total: 5 Result: Taxable estate 6 Add: Adjusted taxable gifts (post-1976) 7 Result: Estate tax base Compute: Tentative tax on estate tax base Subtract sum of: (a) Gift tax payable on post-1976 gifts (b) Unified tax credit Total: 10 Result: Total estate taxes 11 Subtract: Other credits ($0.00) 12 Result: Federal estate tax due Nick Lacoste died in 2012, leaving an estate of $24,000,00o. Nick's wife died in 2009. In 2009, Nick gave his son property that resulted in a taxable gift of $5,000,000 and upon which Nick paid $1,100,000 in transfer taxes. Nick had made no other taxable gifts during his life. Nick's will provided a charitable bequest of $750,000 to his church. Exhibits - Tax schedules and credits Exhibit 15.7– Unified Credits and Applicable Exclusion Amounts for Estates and Gifts: Exhibit 15.8 – Federal Unified Transfer Tax Rates: Unified Tax Credit- Applicable Exclusion Amount- Unified Tax Credit- Applicable Exclusion Amount Year Estates Estates Gifts -Gifts 2008 $780,800 $2,000,000 $345,800 $1,000,000 2009 $1,455,800 $3,500,000 $345,800 $1,000,000 2010 Estate tax repealed for $330,800 $1,000,000 2010 2011 $1,730,800 $5,000,000 $1,730,800 $5,000,000 2012 $1,772,800 $5,120,000 $1,772,800 $5,120,000 2013 $2,045,800 $5,250,000 $2,045,800 $5,250,000 2014 $2,081,800 $5,340,000 $2,081,800 $5,340,000 2015 $2,117,800 $5,430,000 $2,117,800 $5,430,000 2016 $2,125,800 $5,340,000 $2,125,800 $5,340,000 2017 $2,141,800 $5,490,000 $2,141,800 $5,490,000 2018 $4,417,800 $11,180,000 $4,417,800 $11,180,000 Use the following worksheet to calculate the federal estate tax due on Nick Lacoste's estate. (Hint: Enter a value of $o for any line that does not apply. Use Exhibit 15.7 to determine the appropriate unified tax credit. Use Exhibit 15.8 to calculate the tentative tax.) Computing Federal Estate Tax Due Name: Nick Date: 11/30/2012 Line Computation Item Amount Total Amount 1 Gross estate Subtract sum of: (a) Funeral expenses $0.00 (b) Administrative expenses $0.00 (c) Debts $0.00 (d) Other expenses $0.00 Total: ($0.00) Result: Adjusted gross estate 4 Subtract sum of: (a) Marital deduction $0.00 (b) Charitable deduction Total: 5. Result: Taxable estate Add: Adjusted taxable gifts (post-1976) 7. Result: Estate tax base 8. Compute: Tentative tax on estate tax base 9. Subtract sum of: (a) Gift tax payable on post-1976 gifts (b) Unifled tax credit Tatal 2 Subtract sum of: (a) Funeral expenses $0.00 (b) Administrative expenses $0.00 (C) Debts $0.00 (d) Other expenses $0.00 Total: ($0.00) Result: Adjusted gross estate 4 Subtract sum of: (a) Marital deduction $0.00 (b) Charitable deduction Total: 5 Result: Taxable estate 6 Add: Adjusted taxable gifts (post-1976) 7 Result: Estate tax base Compute: Tentative tax on estate tax base Subtract sum of: (a) Gift tax payable on post-1976 gifts (b) Unified tax credit Total: 10 Result: Total estate taxes 11 Subtract: Other credits ($0.00) 12 Result: Federal estate tax due

Answer rating: 100% (QA)

Computation Item Amount Total amount 1 Gross estate 24000000 2 Subtr... View the full answer