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>> I realize that giving more than the amount allowable for 2005 requires completion of gift tax form. Is there a table showing how much tax would be payable if I givw 5,000. more than tyhe 11,000. for 2005. Also would that be filed and payable along with the 1040 return? <<

If I read the tables right, you'd owe 18% on the excess -- or $900, unless you use some of your lifetime gift tax exemption.

Sorry, you didn't read the tables right. If the lifetime credit (not a lifetime exemption) were exhausted, the tax payable would be 41% or $2050. The method for calculating the tax is to total the taxable gifts, determine the tax on the total and then subtract the lifetime credit. The tax rate on gifts more than $1million is $345,800 + 41% of the excess over $1million. The lifetime credit is $345,800.

You don't have the option of paying tax now in lieu of using your lifetime credit.

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