In 2016 which of the following is NOT true a the estate tax

In 2016, which of the following is NOT true

a. the estate tax applicaabl exclusion amt is $5.450,000

b. the executor may elect to use modified carryover basis

c. the highest marginal tax rate is 40%

d. the applicable credity amout is oritabke, that is if it is not used by the first spouse t die, the surving spouse may use the unused credit, sheltering up to 10,900,000 at the second death

Solution

Solution: the applicable credity amout is oritabke, that is if it is not used by the first spouse to die, the surving spouse may use the unused credit, sheltering up to 10,900,000 at the second death

Explanation: For those dying in 2011 and later, if first spouse to die has not fully used the estate tax exclusion, can be transferred or \"ported\" to the surviving spouse however the limit is not sheltering up to 10,900,000 at the second death.