Adjusted Taxable Gifts
Taxable gifts made after Dec. 31, 1976 in excess of the $14,000 annual gift exclusion amount (indexed for 2014), need to be added back into the taxable estate to determine the tax base. Under special circumstances, if the gift was included in the gross estate it would not need to be reported again.
The FMV at the date of the gift is the amount that would be applied.
Tentative Tax Base
Taxable Estate + Adjusted Taxable Gifts = Tentative Tax Base
Tentative Tax Calculation
Once the tentative tax base is determined, then it is calculated based on the tax scale below:
|Lower Limit||Upper Limit||Initial Taxation||Further Taxation|
|0||$10,000||$0||18% of the amount|
|$10,000||$20,000||$1,800||20% of the excess over $10,000|
|$20,000||$40,000||$3,800||22% of the excess over $20,000|
|$40,000||$60,000||$8,200||24% of the excess over $40,000|
|$60,000||$80,000||$13,000||26% of the excess over $60,000|
|$80,000||$100,000||$18,200||28% of the excess over $80,000|
|$100,000||$150,000||$23,800||30% of the excess over $100,000|
|$150,000||$250,000||$38,800||32% of the excess over $150,000|
|$250,000||$500,000||$70,800||34% of the excess over $250,000|
|$500,000||and over||$155,800||35% of the excess over 500,000|
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