Question

Ghoulardi died in 2019. Her gross estate was worth $20,000,000. $5,000,000 went directly to her husband. $500,000 went to her church. Her funeral and all properly deductible liabilities of the estate totaled $100,000. Her post-1976 cumulative taxable gifts totaled $800,000; the related estate and gift tax deemed paid on cumulative gifts was $50,000. No estate taxes were paid at the state level. How much income does her husband report in his personal tax return [Form 1040] from the bequest to him?

Answer 1

Ans: Particulars Gross value of Estate Less: Went to her husband 5 Less: Went to her church Less: Funeral and all properly deductible liabilities Net Estate Value Less: Basic exemption limit for 2019 Taxable Estate Estate Tax on $1,000,000 40% on amount above $1,000,000 Total Estate Tax Amount $20,000,000 $5,000,000 $500,000 $100,000 $14,400,000 $11,400,000 $3,000,000 $345,800 $800,000 $1,145,800 Post-1976 Cumulative taxable gifts Tax on $800,000 @248,300 up to $750,000 & 39% on balance Exemption available Net Tax payable Gift tax deemed paid Net Gift Tax $800.000 $267,800 $47,000 $220,800 $50,000 S170,800 Total Estate tax $1,316,600

Ans: Particulars Gross value of Estate 4 Less: Went to her husband Less: Went to her church Less: Funeral and all properly deductible liabilities Net Estate Value Basic exemption limit for 2019 Taxable Estate Estate Tax on $1,000,000 40% on amount above $1,000,000 Total Estate Tax Amount 20000000 5000000 500000 100000 =C3-C4-C5-C6 11400000 3000000 345800 =(C9-1000000)*40% =SUM(C10:011) Post-1976 Cumulative taxable gifts Tax on $800,000 @248,300 up to $750,000 & 39% on balance Exemption available Net Tax payable Gift tax deemed paid Net Gift Tax 800000 =248300+(50000*39%) 47000 =C15-C16 50000 =C17-C18 Total Estate tax =C12+C19