Quinn made a taxable gift of a $4,500,000 home (after his annual exclusion) to his daughter in 2011. In December of the current year, Quinn made taxable gifts totaling $8,000,000 (after annual exclusions). What is Quinn's gift tax in 2017 if 2011 was the only year in which he made taxable gifts?

Question

Quizplus · Accepted Answer

Tax on prior taxable gifts using current rates but prior credit: ([$3,500,000 x .4] + $345,800 - $1,730,800) = $15,000; tax on cumulative gifts of $12,500,000: ([$11,500,000 x .40] + $345,800 - $2,141,800 = $2,804,000. [Alternative calculation: ($12,500,000 - $5,490,000) x .4 = $2,804,000.] $2,804,000 - $15,000 = $2,789,000.

Quinn Made a Taxable Gift of a $4,500,000 Home (After