June made taxable gifts as follows: $200,000 in 1977, $600,000 in 1985, and $700,000 in 2001. In 2013, June dies leaving a taxable estate of $4,000,000. June's tax base for applying the unified tax rate schedules (for estate tax purposes) is:

Question

Quizplus · Accepted Answer

To determine the taxable estate, we need to calculate the total amount of June's lifetime taxable gifts, which is $1.5 million ($200,000 + $600,000 + $700,000). We then add that amount to the value of her estate at her death, which is $4 million, to get a total of $5.5 million.

Therefore, the correct answer is D.

June Made Taxable Gifts as Follows: $200,000 in 1977, $600,000