1At her death in 2015 Sarah was single never married Sarah h

1)At her death in 2015, Sarah was single (never married). Sarah had made no taxable gifts during her lifetime. 2)At her death in 2015, Sarah was single (never married). In 2011, Sarah had made a taxable gift valued at $2,250,000. . 3)At her death in 2015, Sarah was single (never married). In 2009, Sarah had made a taxable gift valued at $2,250,000. 4)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. 5)At her death in 2015, Sarah was single (widowed). Sarah\'s husband had died in 2011 with a taxable estate of $2,250,000. Although Husband\'s taxable estate was less than his applicable exclusion amount (AEA) in 2011, an estate tax was filed for the sole purpose of electing portability with respect to his unused AEA. Sarah had made no taxable gifts during her lifetime. A. None of the other answers is correct. B. Sarah\'s estate tax is $2,655,800. C. Sarah\'s estate tax is $0. D. Sarah\'s estate tax is $1,200,000. E. Sarah\'s estate tax is $700,000. F. Sarah\'s estate tax is $1,050,000. G. Sarah\'s estate tax is $1,487,500. H. Sarah\'s estate tax is $1,700,000. I. Sarah\'s estate tax is $800,000.

Solution

C. Sarah\'s estate tax is $0. Under IRS, estate with combined gross assets and prior taxable gift upto a limit of $5.43 million(year 2015) is exempted.