At her death in 2015 Sarah had a taxable estate that was wor

At her death in 2015, Sarah had a taxable estate that was worth $7,430,000. Pl compute the estate tax that is due at Sarah\'s death bearing in mind at her death in 2015, Sarah was single (never married). Sarah had made no taxable gifts during her lifetime.

Solution

Solution:

Taxable estate = $7,430,000

Avaialble estate exemption for 2015 = $5.43 million = $5,430,000

Net taxable estate = $7,430,000 - $5,430,000 = $2,000,000

Estate tax rate = 40%

Estate tax liability = $2,000,000*40% = $800,000