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In 2010 Casey made a taxable gift of $6.8 million to both Stephanie and Linda (a total of $13.6 million in taxable gifts). Calculate the amount of gift tax due this year and Casey’s unused exemption equivalent under the following alternatives. (Refer to Exhibit 25-1 and Exhibit 25-2.) (Enter your answers in dollars, not millions of dollars. Leave no answer blank. Enter zero if applicable.)

b. This year Casey made a taxable gift of $16.8 million to Stephanie. Casey is not married, and the 2010 gift was the only other taxable gift he has ever made.

Gift tax due

Unused exemption equivalent
    

Answer 1

1. Taxable Gift= $13,60,0000

Less:- Annual exclusion per donee= ($28000)

Current Taxable Gifts= $13,57,2000

Prior Taxable Gift= 0

Cumulative Gifts= $13,57,2000

Less:- Tax on cumulative gifts @40%= $5428800

Less:- Tax on prior taxable gifts= 0

Tax on current taxable gifts= $8143200

Less:- Unused unified credit= $54,30,000

Gift Tax due= $2713200

2.

This year Casey made a taxable gift of $16.8 million to Stephanie. Casey is not married, and the 2010 gift was the only other taxable gift he has ever made.

Taxable Gift= $16,80,0000

Less:- Annual exclusion per donee= ($14000)

Current Taxable Gifts= $16,78,6000

Prior Taxable Gift= 0

Cumulative Gifts= $16,78,6000

Less:- Tax on cumulative gifts @40%= $6714400

Less:- Tax on prior taxable gifts= 0

Tax on current taxable gifts= $10071600

Less:- Unused unified credit= $54,30,000

Remained unified credit= $4641600