Estate tax formula Flashcards
1
Q
Estate tax formula
A
- Gross estate
- – Expenses, debts, and losses
- = Adjusted gross estate (AGE)*
- – Total allowable deductions
- = Taxable estate
- Adjusted taxable gifts (post-1976)
- Compute: Tentative tax base (8) Compute: Tentative tax (9) Less: Tax deemed paid on prior taxable gifts (10) Equals: Estate tax before reduction for allowable credits (11) Less: Applicable credit amount Other credits (12) Equals: Estate tax liability
2
Q
Expenses, debts, and losses
A
- Funeral and administrative expenses
- Debts of decedent, mortgages, losses
3
Q
(4) Total allowable deductions
A
- Charitable deduction
- Marital deduction
- State death taxes
4
Q
Adjusted Gross Estate
A
The term “Adjusted Gross Estate” does not appear on Form 706
However, this concept applies to
- Section 303
- Section 6166
- Section 2032A