Question

In 2010 Casey made a taxable gift of $5 million to both Stephanie and Linda (a...

In 2010 Casey made a taxable gift of $5 million to both Stephanie and Linda (a total of $10 million in taxable gifts). Calculate the amount of gift tax due this year and Casey’s unused exemption equivalent under the following alternatives

This year Casey made a taxable gift of $5 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
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Answer #1

This year Casey made a taxable gift of $5 million to Stephanie. Casey is not married, and the 2010 gift was the only other taxable gift he has ever made.

Gift Tax Due is Nil (Because the Gift given is well with in the Life time exemption limit)

Unused Exemption Equivalent = Life time Exemption - Taxable gift to Stephanie

= $ 5.34 Million - $ 5 Million

= $ 0.34 Million

Answer will be change if the othe gift will be part of the answer in question it is peovided but ask to calculate for the only for the gift to Stephanie and not for the gift to the linda.

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