Tentative tax The tentative tax is based on the tentative tax base, which is the sum of the taxable estate and the "adjusted taxable gifts" (i.e., taxable gifts made after 1976). For decedents dying after December 31, 2009, the tentative tax will, with exceptions, be calculated by applying the following tax rates: Lower Limit Upper Limit Initial Taxation Further Taxation 0 $10,000 $0 18% of the amount $10,000 $20,000 $1,800 20% of the excess $20,000 $40,000 $3,800 22% of the excess $40,000 $60,000 $8,200 24% of the excess $60,000 $80,000 $13,000 26% of the excess $80,000 $100,000 $18,200 28% of the excess $100,000 $150,000 $23,800 30% of the excess $150,000 $250,000 $38,800 32% of the excess $250,000 $500,000 $70,800 34% of the excess $500,000 $750,000 $155,800 37% of the excess $750,000 $1,000,000 $248,300 39% of the excess $1,000,000 and over $345,800 40% of the excess --Internal Revenue Code section 2001(c), as amended by section 302(a)(2) of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (H.R. 4853), Pub. L. No. 111-312, ___ Stat. ___ (Dec. 17, 2010), as amended by section 101(c)(1) of the American Taxpayer Relief Act of 2012. The tentative tax is reduced by gift tax that would have been paid on the adjusted taxable gifts, based on the rates in effect on the date of death (which means that the reduction is not necessarily equal to the gift tax actually paid on those gifts).
Posted on: Mon, 08 Jul 2013 12:45:46 +0000
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