Instructions For Form 706 - 2016 (Page 9 of 54) in pdf

Taxable Gift Amount Table

Table of

Basic Exclusion Amounts

Column A

Column B

Column C

Column D

Period

Basic

Credit

Exclusion

Equivalent

Amount in Row (p) Line

Property Value on

Rate (Divisor) on

Amount

at 2016

7 Worksheet over...

7 Worksheet not over...

Amount in Column A

excess of amount in

rates

Column A

1977 (Quarters 1

$30,000

$6,000

1,800

18%

and 2)

1,800

3,800

10,000

20%

1977 (Quarters 3

$120,667

$30,000

3,800

8,200

20,000

22%

and 4)

8,200

13,000

40,000

24%

1978

$134,000

$34,000

13,000

18,200

60,000

26%

1979

$147,333

$38,000

18,200

23,800

80,000

28%

1980

$161,563

$42,500

23,800

38,800

100,000

30%

1981

$175,625

$47,000

38,800

70,800

150,000

32%

1982

$225,000

$62,800

70,800

155,800

250,000

34%

1983

$275,000

$79,300

155,800

248,300

500,000

37%

1984

$325,000

$96,300

248,300

345,800

750,000

39%

1985

$400,000

$121,800

345,800

– – – – – –

1,000,000

40%

1986

$500,000

$155,800

1987 through 1997

$600,000

$192,800

1998

$625,000

$202,050

A — Unified Rate Schedule, and enter

How to complete line 7 worksheet.

here.

Row (a). Beginning with the earliest

1999

$650,000

$211,300

Note. The entries in each column of

year in which the taxable gifts were

2000 and 2001

$675,000

$220,550

Row (k) must be reduced by 20 percent

made, enter the tax period of prior gifts.

of the amount allowed as a specific

2002 through 2010

$1,000,000

$345,800

If you filed returns for gifts made after

exemption for gifts made after

1981, enter the calendar year in Row (a)

2011

$5,000,000

$1,945,800

September 8, 1976, and before January

as (YYYY). If you filed returns for gifts

2012

$5,120,000

$1,993,800

1, 1977 (but no more than $6,000).

made after 1976 and before 1982, enter

Row (l). Add the amounts in Row (l)

2013

$5,250,000

$2,045,800

the calendar quarters in Row (a) as

and Row (n) from the previous column.

(YYYY-Q).

2014

$5,340,000

$2,081,800

Row (m). Subtract the amount in Row

Row (b). Enter all taxable gifts made in

2015

$5,430,000

$2,117,800

(l) from the amount in Row (k) to

the specified year. Enter all pre-1977

determine the amount of any available

2016

$5,450,000

$2,125,800

gifts on the pre-1977 column.

credit. Enter result in Row (m).

Row (c). Enter the amount from Row

Row (n). Enter the lesser of the

(d) of the previous column.

amounts in Row (g) or Row (m).

Row (d). Enter the sum of Row (b) and

Row (o). Subtract the amount in Row

Note. In figuring the line 7 amount, do

Row (c) from the current column.

(n) from the amount in Row (g) for the

not include any tax paid or payable on

Row (e). Enter the amount from Row (f)

current column.

gifts made before 1977. The line 7

of the previous column.

Row (p). Subtract the amount in Row

amount is a hypothetical figure used to

Row (f). Enter the tax based on the

(o) from the amount in Row (f) for the

calculate the estate tax.

amount in Row (d) of the current column

current column.

using Table A — Unified Rate Schedule,

Special treatment of split gifts.

Row (q). Enter the Cumulative Taxable

earlier.

These special rules apply only if:

Gift amount based on the amount in

Row (g). Subtract the amount in Row

The decedent's spouse predeceased

Row (p) using the Taxable Gift Amount

(e) from the amount in Row (f) for the

the decedent;

Table.

current column.

The decedent's spouse made gifts

Row (r). If Row (o) is greater than zero

Row (h). Complete this row only if a

that were “split” with the decedent under

in the applicable period, subtract Row

DSUE amount was received from

the rules of section 2513;

(q) from Row (d). If Row (o) is not

predeceased spouse(s) and was

The decedent was the “consenting

greater than zero, enter -0-.

applied to lifetime gifts. See line 2 of

spouse” for those split gifts, as that term

Repeat for each year in which

Schedule C on the Form 709 filed for

is used on Form 709; and

taxable gifts were made.

the year listed in Row (a) for the amount

The split gifts were included in the

to be entered in this row.

Remember to submit a copy of

decedent's spouse's gross estate under

Row (i). Enter the applicable amount

the Line 7 Worksheet when you

section 2035.

from the Table of Basic Exclusion

file Form 706. If additional

If all four conditions above are met,

CAUTION

Amounts.

space is needed to report prior gifts,

do not include these gifts on line 4 of the

Row (j). Enter the sum of Rows (h) and

please attach additional sheets.

Tax Computation and do not include the

Row (i).

gift taxes payable on these gifts on

Row (k). Calculate the applicable credit

line 7 of the Tax Computation. These

on the amount in Row (j) using Table

adjustments are incorporated into the

worksheets.

Part Instructions

-9-

Instructions For Form 706 - 2016 Page 9

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