June made taxable gifts as follows: $400,000 in 1973,$200,000 in 1977,$600,000 in 1985,and $700,000 in 2001.In 2012,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 calculate the tax base for applying the unified tax rate schedules, we need to add up the taxable gifts made by the decedent during their lifetime (from 1977 onwards) to the value of their estate at the time of death.

Total taxable gifts = $200,000 + $600,000 + $700,000 = $1,500,000

Tax base = Total taxable gifts + Estate value = $1,500,000 + $4,000,000 = $5,500,000

Therefore, the correct answer is D) $5,500,000.

June Made Taxable Gifts as Follows: $400,000 in 1973,$200,000 in 1977,$600,000