Calculating the Federal Gift Tax

 

 

1. Value of gift property  
2. Less: 50% of line 1 amount if donor's spouse consents to split the gift* __________
3. Less: annual exclusion up to $19,000 if gift is of a present interest -__________
4. Less: 100% marital deduction if gift is to donor's spouse and is not a gift of a terminable interest -__________
5. Less: charitable deduction allowable -__________
6. Taxable gift (line 1 amount less lines 2, 3, 4 and 5 as applicable) -__________
7. Plus: all previous taxable gifts __________
8. Total taxable gifts (add lines 6 and 7) +__________
9. Compute tentative tax #1 on line 8 amount using unified estate and gift tax rates __________
10. Less: compute tentative tax #2 on line 7 amount -__________
11. Tax on current taxable gift before tax credit (line 9 minus line 10) __________
12. Less: applicable credit amount (unified credit) for year of gift -__________
13. Plus: any applicable credit amount previously used +__________
14. Federal gift tax payable (line 11, minus line 12, plus line13) __________

 

* If gift-splitting is used, the other half of the gift must be reported as a gift by the donor's spouse.