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EXHIBIT 25-2 The Exemption Equivalent Year of Transfer Gift Tax Estate Tax 1986 $500,000 $500,000 1987–1997 600.000 600,000 1998 625,000 625,000 1999 650,000 650,000 2000-2001 EXHIBIT 25-1 Unified Transfer Tax Rates 675,000 675,000 Tax Base Equal to or Over Not Over Tentative Tax Plus of Amount Over 2002–2003 1,000,000 1,000,000 $10.000 18% 10,000 20,000 1,800 20 10,000 2004-2005 1,000,000 1,500,000 20,000 40,000 3,800 22 20,000 40,000 60,000 2006-2008 24 40,000 1,000,000 2,000,000 8,200 60,000 80,000 13,000 26 60,000 2009-2010* 1,000,000 3,500,000 80,000 100,000 18,200 28 80,000 100,000 150,000 23,800 30 100,000 2011 5,000,000 5,000,000 150,000 250,000 38,800 32 150,000 250,000 500,000 70.800 34 250,000 2012 5,120,000 5,120,000 500,000 750.000 155,800 37 S00 000 2013 5,250,000 5,250,000 750,000 1,000,000 248,300 39 750,000 1,000,000 345 800 40 1,000,000 2014 2015 5,340,000 5,340,000 *The applicable credit and exemption are zero for estates that opted out of the estate tax in 201I0. 5,430,000 5,430,000 2016 5,450,000 5,450,000 2017 5,490,000 5,490,000 2018 11,180,000 11,180,000 2019 2020 11,400,000 11,400,000 11,580,000 11,580,000 2021 11,700,000 11,700,000 *The applicable credit and exemption are zero for taxpayers who opt out of the estate tax in 2010.

EXHIBIT 25-2 The Exemption Equivalent Year of Transfer Gift Tax Estate Tax 1986 $500,000 $500,000 1987–1997 600.000 600,000 1998 625,000 625,000 1999 650,000 650,000 2000-2001 EXHIBIT 25-1 Unified Transfer Tax Rates 675,000 675,000 Tax Base Equal to or Over Not Over Tentative Tax Plus of Amount Over 2002–2003 1,000,000 1,000,000 $10.000 18% 10,000 20,000 1,800 20 10,000 2004-2005 1,000,000 1,500,000 20,000 40,000 3,800 22 20,000 40,000 60,000 2006-2008 24 40,000 1,000,000 2,000,000 8,200 60,000 80,000 13,000 26 60,000 2009-2010* 1,000,000 3,500,000 80,000 100,000 18,200 28 80,000 100,000 150,000 23,800 30 100,000 2011 5,000,000 5,000,000 150,000 250,000 38,800 32 150,000 250,000 500,000 70.800 34 250,000 2012 5,120,000 5,120,000 500,000 750.000 155,800 37 S00 000 2013 5,250,000 5,250,000 750,000 1,000,000 248,300 39 750,000 1,000,000 345 800 40 1,000,000 2014 2015 5,340,000 5,340,000 *The applicable credit and exemption are zero for estates that opted out of the estate tax in 201I0. 5,430,000 5,430,000 2016 5,450,000 5,450,000 2017 5,490,000 5,490,000 2018 11,180,000 11,180,000 2019 2020 11,400,000 11,400,000 11,580,000 11,580,000 2021 11,700,000 11,700,000 *The applicable credit and exemption are zero for taxpayers who opt out of the estate tax in 2010.

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter15: Preserving Your Estate
Section: Chapter Questions
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EXHIBIT 25-2 The Exemption Equivalent Year of Transfer Gift Tax Estate Tax 1986 $500,000 $500,000 1987–1997 600,000 600,000 1998 625,000 625,000 1999 650,000 650,000 EXHIBIT 25-1 Unified Transfer Tax Rates* 2000–2001 675,000 675,000 Tax Base Equal to or Over Not Over Tentative Tax Plus of Amount Over $ 0 2002–2003 1,000,000 1,000,000 $ $10,000 $ 18% 10,000 20,000 1,800 20 10,000 2004-2005 1,000,000 1,500,000 20,000 40,000 3,800 22 20,000 60,000 8,200 40,000 2006–2008 1,000,000 2,000,000 40,000 24 60,000 80,000 13,000 26 60,000 2009–2010* 1,000,000 3,500,000 80,000 100,000 18,200 28 80,000 100,000 150,000 23,800 30 100,000 2011 5,000,000 5,000,000 150,000 250,000 38,800 32 150,000 250,000 500,000 70,800 34 250,000 2012 5,120,000 5,120,000 500,000 750,000 155,800 37 500,000 750,000 750,000 2013 5,250,000 5,250,000 1,000,000 248,300 39 1,000,000 345,800 40 1,000,000 2014 5,340,000 5,340,000 *The applicable credit and exemption are zero for estates that opted out of the estate tax in 2010. 2015 5,430,000 5,430,000 2016 5,450,000 5,450,000 2017 5,490,000 5,490,000 2018 11,180,000 11,180,000 2019 11,400,000 11,400,000 2020 11,580,000 11,580,000 2021 11,700,000 11,700,000 *The applicable credit and exemption are zero for taxpayers who opt out of the estate tax in 2010.
Transcribed Image Text:EXHIBIT 25-2 The Exemption Equivalent Year of Transfer Gift Tax Estate Tax 1986 $500,000 $500,000 1987–1997 600,000 600,000 1998 625,000 625,000 1999 650,000 650,000 EXHIBIT 25-1 Unified Transfer Tax Rates* 2000–2001 675,000 675,000 Tax Base Equal to or Over Not Over Tentative Tax Plus of Amount Over $ 0 2002–2003 1,000,000 1,000,000 $ $10,000 $ 18% 10,000 20,000 1,800 20 10,000 2004-2005 1,000,000 1,500,000 20,000 40,000 3,800 22 20,000 60,000 8,200 40,000 2006–2008 1,000,000 2,000,000 40,000 24 60,000 80,000 13,000 26 60,000 2009–2010* 1,000,000 3,500,000 80,000 100,000 18,200 28 80,000 100,000 150,000 23,800 30 100,000 2011 5,000,000 5,000,000 150,000 250,000 38,800 32 150,000 250,000 500,000 70,800 34 250,000 2012 5,120,000 5,120,000 500,000 750,000 155,800 37 500,000 750,000 750,000 2013 5,250,000 5,250,000 1,000,000 248,300 39 1,000,000 345,800 40 1,000,000 2014 5,340,000 5,340,000 *The applicable credit and exemption are zero for estates that opted out of the estate tax in 2010. 2015 5,430,000 5,430,000 2016 5,450,000 5,450,000 2017 5,490,000 5,490,000 2018 11,180,000 11,180,000 2019 11,400,000 11,400,000 2020 11,580,000 11,580,000 2021 11,700,000 11,700,000 *The applicable credit and exemption are zero for taxpayers who opt out of the estate tax in 2010.
Roland had a taxable estate of $15.6 million when he died this year. Required: Calculate the amount of estate tax due (if any) under the following alternatives. (Refer to Exhibit 25-1 and Exhibit 25-2.) (Enter your answers in dollars and not in millions of dollars.) a. Roland's prior taxable gifts consist of a taxable gift of $1 million in 2005. Estate tax due
Transcribed Image Text:Roland had a taxable estate of $15.6 million when he died this year. Required: Calculate the amount of estate tax due (if any) under the following alternatives. (Refer to Exhibit 25-1 and Exhibit 25-2.) (Enter your answers in dollars and not in millions of dollars.) a. Roland's prior taxable gifts consist of a taxable gift of $1 million in 2005. Estate tax due
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