Solution-What is john gift tax, Two years ago, John had

What is john gift tax

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Reference no: EM131871781

Question - In 2015, John made a single, large cash gift to his father in the amount of $7,194,000. Two years ago, John had made taxable gifts that totaled $400,000. For 2015, John computed the gift tax as follows:

• Gift amount $7,194,000

• Less, annual exclusion (13,000)

• Taxable gift $7,181,000

• Less, remaining exemption amount (4,600,000)

• Tax base $2,581,000

• Tax on $6,400,000 $ 978,200

If $978,200 is not the correct gift tax for this situation, what is John's gift tax for 2015?

A. None of the other answers is correct.

B. $976,800 is the correct gift tax for 2015

C. $2,755,800 is the correct gift tax for 2015

D. $160,200 is the correct gift tax for 2015

E. $860,000 is the correct gift tax for 2015

Reference no: EM131871781

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What is john gift tax

Reference no: EM131871781

Reference no: EM131871781

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