1. Cameron gave the following gifts to her niece, Jill andnephew, Jack:
$10,000 to Jill and $10,000 to Jack in 2016
$15,000 to Jill and $20,000 to Jack in 2017
$25,000 to Jill and $25,000 to Jack in 2018
The annual exclusion for 2016 & 2017 is $14,000 and for 2018is $15,000; the lifetime estate and gift tax basic exclusion amountis 2016 in $5,450,000; 2017 in $5,490,000, and 2018 in 11,180,000.Calculate the value of the gift tax using the table below.
GIFT TAX CALCULATION |
1. Total Current Year Gifts | |
2. Less Annual Exclusion | |
3. Total Current Year Taxable Gifts | |
4. Plus Taxable Gifts from Prior Years | |
5. Total Taxable Gifts | |
6. Tax on Total Taxable Gifts | |
7. Tax on Prior Gifts | |
8. Balance | |
9. Applicable Credit | |
10. Applicable Credit Against Tax for all Prior Periods | |
11. Balance (subtract 10 from 9) | |
12. Applicable Credit (smaller of 8 or 11) | |
13. Total Gift tax (8 minus 12) | |
