When computing gift tax amount for 2023 for a gift of 150000, do you enter the number on the table on line 4 (table for computing gift tax) 23,800 or do you multiply the taxable amount 132,00 times the 30 percent.
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1 Best answer
M-MTax
Level 12
Jun 5, 2024 11:09:26 AM
If it's $150,000 gift less $18,000 exclusion then you have a $132,000 taxable gift.
So you have tax of $23,800 plus 30% of the amount over $100,000 or $32,000 times 30%.
Total = $23,800 plus $9.600 = $33,400
4 Replies
M-MTax
Level 12
Jun 5, 2024 11:06:22 AM
Use the table for computing the tax. In your case it's $23,800 PLUS 30% of the amount over $100,000.
M-MTax
Level 12
Jun 5, 2024 11:07:01 AM
Don't forget to deduct your annual exclusion and I assume you did that.
M-MTax
Level 12
Jun 5, 2024 11:09:26 AM
If it's $150,000 gift less $18,000 exclusion then you have a $132,000 taxable gift.
So you have tax of $23,800 plus 30% of the amount over $100,000 or $32,000 times 30%.
Total = $23,800 plus $9.600 = $33,400
CzarSosa
Level 2
Jun 5, 2024 12:03:42 PM
Thanks for the detailed explanation. I had not idea on what to do.