Estate Tax - Adjusted Taxable Gifts and Tax Calculations

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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