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 (widowed). Sarah\'s husband had died in 2011 with a taxable estate of $2,250,000. Because Husband\'s taxable estate was less than his applicable exclusion amount (AEA) in 2011, no estate tax was filed. Sarah had made no taxable gifts during her lifetime.

Solution

As per estate tax rates prevailing in 2015, exclusion amount was 5.43$ million and rate was 40.

The amount of estate tax for Sarah is 7.43$ million - 5.43$ million= 2$ million taxable amount.

Estate tax= 2$million * 40 = 0.8$ million.