Formula for the federal estate tax

Reference no: EM13987602

1. Elizabeth, a widow since 2000, made taxable gifts of $3 million in 2011 and $4 million in 2015. She paid no gift tax on the 2011 transfer. What is her tax base for determining any gift tax on the 2015 gift?

2. Carter died in 2015 with a gross estate of $6 million. Before he was married in 2002, Carter had made taxable gifts of $400,000 upon which he paid no gift tax. All of Carter's property passes to his surviving spouse. Referring to the formula for the Federal estate tax, as to Carter's estate, what is his:

a. Taxable estate?

b. Tax base?

Reference no: EM13987602

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