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  • Cumulative Basis of Computing The Net Taxable Gifts

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    Jessie Castañeda
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    This document outlines the process for calculating cumulative net taxable gifts and donor tax liability for multiple donations made within a year, both before and after 2018. It shows how for each subsequent donation, the net taxable gift amount adds the prior net gifts and subtracts the annual exempt amount. The cumulative taxable amount is then used to calculate tax liability at the donor's tax rate, accounting for taxes paid from prior donations.

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    A pro-forma solution for computing the Net Taxable Gifts in a cumulative basis

    Original Title

    Cumulative Basis of Computing the Net Taxable Gifts

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    This document outlines the process for calculating cumulative net taxable gifts and donor tax liability for multiple donations made within a year, both before and after 2018. It shows how for each subsequent donation, the net taxable gift amount adds the prior net gifts and subtracts the annual exempt amount. The cumulative taxable amount is then used to calculate tax liability at the donor's tax rate, accounting for taxes paid from prior donations.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    34 views2 pages

    Cumulative Basis of Computing The Net Taxable Gifts

    Uploaded by

    Jessie Castañeda
    This document outlines the process for calculating cumulative net taxable gifts and donor tax liability for multiple donations made within a year, both before and after 2018. It shows how for each subsequent donation, the net taxable gift amount adds the prior net gifts and subtracts the annual exempt amount. The cumulative taxable amount is then used to calculate tax liability at the donor's tax rate, accounting for taxes paid from prior donations.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Cumulative Basis of Computing the Net

    Taxable Gifts
    (SUBSEQUENT DONATION WITHIN A
    YEAR)

    2018 onwards

    DATE 3 (_______________)
    DATE 1 (_______________)

    Net Gift Net Gift, (Date 3)


    LESS: Exempt (250.000) ADD: Prior Net
    Gift Gift, (Date 1)
    Net Taxable Gift ADD: Prior Net
    Gift, (Date 2)
    Donor’s Tax Rate 0.06 LESS: Exempt Gift (250.000)
    Donor’s Tax Due Net Taxable Gift,
    cumulative
    Donor’s Tax Rate 0.06
    DATE 2 (_______________) Donor’s Tax Due
    Net Gift, (Date 2) LESS: Donor’s Tax
    ADD: Prior Net Paid, (Date 2)
    Gift, (Date 1) Donor’s Tax
    LESS: Exempt Gift (250.000) Payable

    Net Taxable Gift,


    cumulative
    Donor’s Tax Rate 0.06
    Donor’s Tax Due
    LESS: Donor’s Tax
    Paid, (Date 1)
    Donor’s Tax
    Payable
    Before 2018

    DATE 1 (_______________) donation to: DATE 3 (_______________) donation to:

    Net Gift Net Gift, (Date 3)


    LESS: Donor’s Tax ADD: Prior Net
    OVER Gift, (Date 1)
    EXCESS ADD: Prior Net
    Gift, (Date 2)
    TIMES: Rate Total Net Gift
    Tax Amount LESS: Donor’s Tax
    OVER
    PLUS: Tax SHALL
    EXCESS
    BE
    Donor’s Tax Due TIMES: Rate
    Tax Amount

    DATE 2 (_______________) donation to: PLUS: Tax SHALL


    BE
    Donor’s Tax Due
    Net Gift, (Date 2)
    LESS: Donor’s Tax
    ADD: Prior Net
    paid, (Date 2)
    Gift, (Date 1)
    Donor’s Tax
    Total Net Gift
    Payable
    Less: Donor’s Tax
    OVER
    EXCESS
    TIMES: Rate
    Tax Amount
    PLUS: Tax SHALL
    BE
    Donor’s Tax Due
    LESS: Donor’s Tax
    paid, (Date 1)
    Donor’s Tax
    Payable

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