Reference no: EM131779053

In 2010 Casey made a taxable gift of $5 million to both Stephanie and Linda (a total of $10 million in taxable gifts). Calculate the amount of gift tax due this year and Casey's unused exemption equivalent under the following alternatives. (Leave no answer blank. Enter zero if applicable.)

Exhibit 5-1 and 5-2 is attached.

a. This year Casey made a taxable gift of $1 million to Stephanie. Casey is not married, and the 2010 gift was the only other taxable gift he has ever made. (Reference the tax rate schedule in Exhibit 25-1 and the Unified Credit schedule in Exhibit 25-2 to answer this problem.)

Gift tax:

Unused exemptions equivalent:

b. This year Casey made a taxable gift of $5 million to Stephanie. Casey is not married, and the 2010 gift was the only other taxable gift he has ever made.

Gift tax:

Unused exemptions equivalent:

c. This year Casey made a gift worth $5 million to Stephanie. Casey is married to Helen in a common law state, and the 2010 gift was the only other taxable gift he or Helen has ever made. Casey and Helen elect to gift split.

Casey's gift tax:

Casey's unused exemptions equivalent:

Helen's gift tax:

Helen's unused exemptions equivalent: