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Using property she inherited, Myrna makes a 2018 gift of $16.2 million to her adult daughter, Doris. Neither Myrna nor her husband, Greg has made any prior taxable gifts. Determine the gift tax liabil...

Using property she inherited, Myrna makes a 2018 gift of $16.2 million to her adult daughter, Doris. Neither Myrna nor her husband, Greg has made any prior taxable gifts. Determine the gift tax liability if:

a. The election to split gift is not made.

b. The election to split gifts is made.

c. What are the tax savings from making the election?

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a. The election to split gift is not made.
Myrna's gift tax is computed as follow
Amount of gift $16,200,000
Less annual Exclusion -$15000
Taxable gift $16,185,000
Gift tax on $16,185,000 per appendix A-
Using table for Computing Gift Tax ($345,800 + 40%x ($16,185,000 - $1,000,000) $6,419,800
Less Maximum credit allowed for 2018 -$4,417,800.00
Gift tax due on 2018 gift $2,002,000
b)
If the § 2513 election is made
Myrna Greg
Amount of gift $8100000 $8100000
Less annual Exclusion -$15000 -$15000
Taxable gift $8085000 $8085000
Using table for Computing Gift Tax ($345,800 + 40%x ($80,185,000 - $1,000,000) $3,179,800 $3,179,800
Less Maximum credit allowed for 2018 -$4,417,800 -$4,417,800
Gift tax due on 2015 gift $0 $0
c)
Myrna By making the § 2513 election to split, doris saves $2002000
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