Example_of_Gifts_Credits_and_Estate_Tax_Solutions -...

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Example of Gifts, "Applicable Credit Amount" (fka Unified Credit), and Estate Tax Calculation Year 2008 Subject to Gift tax Tax-free Estate amount $2,000,000 Applicable credit $780,800 I make the following gifts: Paid my son's college tuition $25,000 0 Gave my adult daughter money $20,000 8,000 to pay her medical bills Gave my friend my car $15,000 FMV 3,000 Gave to SPCA $50,000 0 11000 Applicable credit before gifts
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Unformatted text preview: $780,800 I die in 2008: FMV of assets $3,000,000 Less: liabilities-100,000 Less: expenses of estate-50,000 Less: amounts to charity in my will-100,000 $2,750,000 Plus taxable gifts $11,000 Estate tax base $2,761,000 Tax on taxable estate 1,123,250 On $2 million 780,800 Less: applicable credit-$780,800 45% on excess 342450 Tax due $342,450 1,123,250...
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