Estimate how an assumed gift-tax rate, available exclusion, and payment method affect a transfer. Compare tax paid outside the gift with tax withheld from it, and see the recipient's net amount and the donor's total cash outlay.
Tax = max(0, gift − exclusion) × assumed tax rate
Recipient net = gift − tax × (1 − outside-payment share).
The main result is the recipient's modeled net transfer after any portion of estimated tax withheld from the gift.
This is a planning estimate, not tax, legal, or investment advice. Actual treatment depends on jurisdiction, trust terms, holding periods, and individual circumstances.
For a $500,000 gift, $18,000 exclusion, 30% assumed rate, and 100% paid outside the gift, estimated tax is $144,600. The recipient receives $500,000 and donor cash outlay is $644,600.
No. It applies the rate and exclusion you enter for scenario planning.
It means the donor uses separate cash to pay the modeled tax instead of reducing the recipient's transfer.
No. The calculator floors the modeled taxable amount at zero.
When tax is paid separately, that payment is added to the donor's cash outlay.
Only if you reflect it in the available-exclusion input; the calculator does not track a legal exemption ledger.
| Result | Definition |
|---|---|
| Taxable amount | Gift less entered exclusion, floored at zero |
| Recipient net | Gift less tax withheld from gift |
| Donor outlay | Gift plus tax paid separately |