Mr.McCann died this year.During his lifetime,he made taxable gifts significantly in excess of his lifetime transfer tax exclusion.Mr.McCann's taxable estate was $21.9 million.Compute the estate tax on this estate.

Question

Quizplus · Accepted Answer

The estate tax is calculated as the amount of the taxable estate in excess of the applicable exclusion amount, multiplied by the applicable tax rate. The applicable exclusion amount for 2023 is $12.92 million. Therefore, the taxable estate in this case is $21.9 million - $12.92 million = $9 million. The applicable tax rate for estates over $9 million is 40%. Therefore, the estate tax on this estate is $9 million x 40% = $3.6 million.

MrMcCann Died This Year