Quinn made taxable gifts of $4,500,000 (after annual exclusions)in 2009.In December of the current year,he passed away leaving a taxable estate of $8,000,000.What is the tax on Quinn's estate if the giftsmade in 2009 were his only priortaxablegifts?

Question

Quizplus · Accepted Answer

Tax on prior taxable gifts using current rates and credit: ([$3,500,000 x .4] + $345,800 - $2,117,800 credit)= 0.Total lifetime and testamentary taxable transfers = $12,500,000; Tax on total transfers = [($11,500,000 x .4)+ $345,800] = $4,945,800; $4,945,800 - $2,117,800 = $2,828,000.There is no credit for prior gift taxes as the tax at current rates is less than the current credit.

Quinn Made Taxable Gifts of $4,500,000 (After Annual Exclusions)in 2009