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Jonathan's taxable had prior taxable gifts of $4,500,000 and an estate valued at his death of...

Jonathan's taxable had prior taxable gifts of $4,500,000 and an estate valued at his death of $8,700,000. His executor paid the following expenses: Attorney fees, $7,500, Accountant Fees $3,000, Funeral Costs $15,000, and appraisal fees $1,500. What is Jonathan's estate tax?

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Answer #1

Solution to find Jonathan's estate Tax :

Value of estate at the time of Jonathan's death 8,700,000
Accountant fees (3,000)
Attorney fees (7,500)
Appraisal fees (1,500)
Funeral cost (15,000)
Total taxable value of Jonathan's estate 8,673,000

Computation of expemtion on estate :

Federal estate tax exemption 11,180,000
Less : Prior taxable gift (4,500,000)
Total Exemption 6,680,000

Total estate tax after deducting exemption = 1,993,000

Applying 40% estate tax on 1,993,000 = $ 797,200

Hence total Jonathan's estate tax = $ 797,200

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