Sasha gives $1,000,000 to her granddaughter. Sasha has used all of her unified credit and is in the 40% marginal gift tax bracket; ignore the annual exclusion and exemption. What is the amount of her tax on this transfer?

Question

Quizplus · Accepted Answer

Since Sasha is in the 40% marginal gift tax bracket and has used all of her unified credit, the tax on the $1,000,000 gift would be 40% of $1,000,000, which is $400,000.

Sasha Gives $1,000,000 to Her Granddaughter