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Unformatted text preview: the top gift tax bracket, his tax is computed as follows (assuming tax year is 2004): Gift tax on gift (48% x $100,000) $ 48,000 GSTT on gift (48% x $100,000) 48,000 Gift tax on GSTT (48% x $48,000) 23,040 Total Tax $119,040 Compare $61,250 (Joe, the tax cheat) with $119,040 (Jack, the rich person), and see who is better off. Keep in mind that in each case the same amount ($100,000) is involved. Needless to say, the GSTT is a gift that keeps on giving! Adapted from Wests CPET book...
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This note was uploaded on 09/09/2011 for the course TAX 5015 taught by Professor Kelliher,c during the Spring '08 term at University of Central Florida.
- Spring '08