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
















 

Credits

Related Articles
  1. Taxes

    How to Avoid Gift Taxes

    For most, the answer to the question, “How much is the gift tax?” can be “nothing."
  2. Insights

    Gift-Giving Etiquette

    Here's a look at how much you should spend and what you should give this holiday season.
  3. Taxes

    10 Sources of Nontaxable Income

    Taxes are often a deterrent from investing and saving. These financial practices will bring you no tax grief.
  4. Insights

    Will Your Gift Card Gift Go Unused?

    An unbelievable amount of money gets wasted in the form of non-redemption: nearly $5 billion a year. These tips will ensure that your gift card gift doesn't go to waste.
  5. Insights

    Why Retailers Love Gift Cards

    Gift cards have many benefits for retailers compared to cash sales. We'll look at a few of them.
  6. Personal Finance

    Top Websites For Discounted Gift Cards

    Gift cards can cost less when you buy them through a discount website. Just do the math before you cough up the cash.
  7. Investing

    How Safe Are Discounted Gift Card Websites?

    Could you buy a gift card online and find out it's worthless? Here's how to protect yourself (and whether you need to).
  8. Personal Finance

    The Smarter Way to Make a College Tuition Gift

    Most college students would be happy to receive help in paying their tuition, just be sure your gift doesn't hurt their financial aid.
  9. Insights

    Gifts For People You Aren't That Close To

    Finding a gift for a new boyfriend or girlfriend, your boss, or the postman can sometimes be a challenge.
Frequently Asked Questions
  1. Why Could A Company Have A Negative Gross Profit Margin?

    There are several reasons why a company might experience a loss in gross margins including poor marketing, ineffective pricing ...
  2. What are the three phases of a completed initial public offering (IPO) transformation process?

    An initial public offering (IPO) represents a private company's first offering of its equity to public investors.
  3. After an initial public offering, does a company profit from increases in its share price?

    The short answer is "no." To understand why, you have to know how the market works.
  4. What is the difference between the equity method and the proportional consolidation method?

    Discover the differences between the equity method and the proportional consolidation method of joint venture accounting, ...
Trading Center