McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 62

Casey gave $1 million of stock to both Stephanie and Linda in 2005, 2006, and 2007.Calculate the amount of gift tax due and the marginal gift tax rate on the next $1 of taxable transfers under the following conditions:
a.In 2005, the annual exclusion was $11,000.Casey was not married and has never made any other gifts.b.In 2006, the annual exclusion was $12,000.Casey was not married and the 2005 gift was the only other gift he has made.c.In 2007, the annual exclusion was $12,000.Casey was married prior to the date of the gift.He and his spouse, Helen, live in a common-law state and have elected to gift-split.Helen has never made a taxable gift, and Casey's only other taxable gifts were the gifts in 2005 and 2006.