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Example 2. Prior Years Unified Credit Recalculation (for Form 709 Schedule B, Column C)

(Three post-1976 years involved, all have the same maximum unified credit available, and total of prior gifts exceeds $1,000,000)

Use this worksheet to figure amounts for Schedule B, Column C.

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

(i)

(j)

(k)

Period

Taxable

Cumulative

Tax

Tax Based on

Tax on

Maximum

Unified

Available

Credit

Gifts for

Taxable Gifts Based on

2010 Rates

Gifts for

Unified

Credit

Credit in

Allowable

Current

Prior

Including

2010

Current

Credit

Allowable in

Current

(lesser of

Period

Periods

Current

Rates on

Cumulative

Period

Available

Prior

Period(Col. Col. (g) and

Period

Gifts for

Gifts

for

Periods

(Col. (f) -

(h) - Col.

Col. (j))

(Col. (b) + Col.

Prior

Including

Col. (e))

Current

(i))

(c))

Periods

Current

Period

(based on

(Col. (c))

(Col. (d))

2010

rates)

Pre-1977

2004

800,000

260,800

330,800

260,800

2007

300,000

800,000

1,100,000

260,800

365,800

105,000

330,800

260,800

70,000

2009

200,000

1,100,000

1,300,000

365,800

435,800

70,000

330,800

Total Unified Credit Used for Prior Gifts :

330,800

Column (c): Enter amount from column (d) of the previous row.

Column (e): Enter amount from column (f) of the previous row.

Column (h): Enter amount from the Table of Unified Credits. (For each row in column (h), subtract 20 percent of any amount allowed as a specific exemption for gifts

made after September 8, 1976, and before January 1, 1977.)

Column (i): Enter the sum of column (i) and column (k) from the previous row.

Example 3. Prior Years Unified Credit Recalculation (for Form 709 Schedule C, Column C)

(Three post-1977 years involved, two different maximum unified credit available, and the total of prior gifts exceeds $1,000,000)

Use this worksheet to figure amounts for Schedule B, column C.

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

(i)

(j)

(k)

Period

Taxable

Cumulative

Tax

Tax Based on

Tax on

Maximum

Unified

Available

Credit

Gifts for

Taxable Gifts Based on

2010 Rates

Gifts for

Unified

Credit

Credit in

Allowable

Current

Prior

Including

2010

Current

Credit

Allowable in

Current

(lesser of

Period

Periods

Current

Rates on

Cumulative Period (Col. Available

Prior

Period

Col. (g) and

Period

Gifts for

Gifts

for

Periods

(f) - Col. (e))

(Col. (h) -

Col. (j))

(Col. (b) + Col.

Prior

Including

Current

Col. (i))

(c))

Periods

Current

Period

(based on

(Col. (c))

(Col. (d))

2010

rates)

Pre-1977

1990

700,000

225,800

190,800

2003

200,000

700,000

900,000

225,800

295,800

70,000

330,800

190,800

140,000

70,000

2009

500,000

900,000

1,400,000

295,800

470,800

175,000

330,800

260,800

70,000

Total Unified Credit Used for Prior Gifts :

330,800

Column (c): Enter amount from column (d) of the previous row.

Column (e): Enter amount from column (f) of the previous row.

Column (h): Enter amount from the Table of Unified Credits. (For each row in column (h), subtract 20 percent of any amount allowed as a specific exemption for gifts

made after September 8, 1976, and before January 1, 1977.)

Column (i): Enter the sum of column (i) and column (k) from the previous row.

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