In 2002, Gert Made a $5,000,000 Taxable Gift

question 31

Essay

In 2002, Gert made a $5,000,000 taxable gift. The 2002 gift tax on $5,000,000 was $2,275.800. Gert was entitled to a unified credit of $345,800, resulting in a gift tax of $1,193,000. The marginal tax rate in 2002 is 50%. For the year of Gert's death (2020), the marginal rate for $5,000,000 of transfers is 40%. the tax on $5,000,000 would equal $1,945,800 before subtracting any credit. In arriving at Gert's estate tax liability, what is the amount subtracted for 2002 gift taxes paid?

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Definitions:

Legitimate Power

The authority that a person possesses as a result of their position or role within an organization or society.

Role Modeling

The process of influencing others by exemplifying behaviors, attitudes, and values for them to emulate.

Strategic Contingencies

Activities that other groups depend on in order to complete their tasks.

Task Functions

Activities centered around planning, executing, and finishing specific work objectives within an organization.