Gifts

In 2012 & 2011, For an estate or gift(s) with: Taxable income of $1 but not over $10,000 the tax is $0 plus 18 % over $0 T.I. of $100,000 but not over $150,000 the tax is $23,820 plus 30 % over $100,000 T.I. of $150,000 but not over $250,000 the tax is $38,800 plus 32 % over $150,000 T.I. of $250,000 but not over $500,000 the tax is $70,800 plus 34 % over $250,000 T.I. of $500,000 but not over $750,000 the tax is $155,800 plus 37 % over $500,000 T.I. of $750,000 but not over $1,000,000 the tax is $248,300 plus 39 % over $750,000 T.I. of $1,000,000or over the tax is $345,800 plus 40 % over $1,000,000 Any gift tax that you would owe is eliminated or reduced by a tax credit. The credit against taxable gifts for 2012 is $1,730,800 effectively exempting $5 million of taxable gifts.