CFP

Estate Tax - Adjusted Taxable Gifts and Tax Calculations

Adjusted Taxable Gifts
Taxable gifts made after Dec. 31, 1976 in excess of the $13,000 annual gift exclusion amount (indexed for 2011), 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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