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Remember to submit a copy of the Line 7 Worksheet when you file Form 706. If additional space is needed to report prior gifts, please attach additional sheets. Note. In figuring the line 7 amount, do not include any tax paid or payable on gifts made before 1977. The line 7 amount is a hypothetical figure used to figure the estate tax. Special treatment of split gifts. These special rules apply only if: • The decedent's spouse predeceased the decedent; • The decedent's spouse made gifts that were “split” with the decedent under the rules of section 2513; • The decedent was the “consenting spouse” for those split gifts, as that term is used on Form 709; and • The split gifts were included in the decedent's spouse's gross estate under section 2035. CAUTION ! If all four conditions above are met, do not include these gifts on line 4 of the Tax Computation and do not include the gift taxes payable on these gifts on line 7 of the Tax Computation. These adjustments are incorporated into the worksheets. Lines 9a Through 9e. Applicable Credit Amount (Formerly Unified Credit Amount) The applicable credit amount is allowable credit against estate and gift taxes. It is figured by determining the tentative tax on the applicable exclusion amount, which is the amount that can be transferred before an estate tax liability will be incurred. The applicable exclusion amount equals the total of the following. • Line 9a, the basic exclusion amount. In 2021, the basic exclusion amount, as adjusted for inflation under section 2010(c)(3), is $11,700,000. • Line 9b, the DSUE. If the decedent had a spouse who died after 2010, whose estate did not use all of its applicable exclusion against gift or estate tax liability, a DSUE amount may be available for use by the decedent's estate. If the predeceased spouse died in 2011, the DSUE amount was figured and attached to his or her Form 706. If the predeceased spouse died in 2012 or after, this amount is found in Part 6, Section C, of the Form 706 filed by the estate of the decedent's predeceased spouse. The amount to be entered on line 9b is figured in Part 6, Section D. • Line 9c, the restored exclusion amount. If a decedent made a taxable gift during the decedent's lifetime to the decedent's same-sex spouse and that transfer resulted in a reduction of the decedent's available applicable exclusion amount, the amount of the applicable exclusion that was reduced can be restored. If the applicable exclusion was previously restored on a Form 709, enter the value on Schedule C, line 3, of Form 709. If the applicable exclusion has not yet been previously restored, follow the directions in the instructions for Form 709, Schedule C, to determine the Restored Exclusion Amount. The Restored Exclusion Amount is entered on line 9c. The total of lines 9a, 9b, and 9c is entered on line 9d. If the amounts entered on both lines 9b and 9c are zero, enter $4,625,800 on line 9e. Otherwise, determine the applicable credit on the amount on line 9d by using Table A—Unified Rate Schedule and enter the result on line 9e. Line 10. Adjustment to Applicable Credit If the decedent made gifts (including gifts made by the decedent's spouse and treated as made by the decedent by reason of gift splitting) after September 8, 1976, and before January 1, 1977, for which the decedent claimed a specific exemption, the applicable credit amount on this estate tax return must be reduced. The reduction is figured by entering 20% of the specific exemption claimed for these gifts. Note. The specific exemption was allowed by section 2521 for gifts made before January 1, 1977. If the decedent did not make any gifts between September 8, 1976, and January 1, 1977, or if the decedent made gifts during that period but did not claim the specific exemption, enter zero. Table of Basic Exclusion Amounts Period Basic Exclusion Amount Credit Equivalent at 2021 Rates 1977 (Quarters 1 and 2) $30,000 $6,000 1977 (Quarters 3 and 4) $120,667 $30,000 1978 $134,000 $34,000 1979 $147,333 $38,000 1980 $161,563 $42,500 1981 $175,625 $47,000 1982 $225,000 $62,800 1983 $275,000 $79,300 1984 $325,000 $96,300 1985 $400,000 $121,800 1986 $500,000 $155,800 1987 through 1997 $600,000 $192,800 1998 $625,000 $202,050 1999 $650,000 $211,300 2000 and 2001 $675,000 $220,550 2002 through 2010 $1,000,000 $345,800 2011 $5,000,000 $1,945,800 2012 $5,120,000 $1,993,800 2013 $5,250,000 $2,045,800 2014 $5,340,000 $2,081,800 2015 $5,430,000 $2,117,800 2016 $5,450,000 $2,125,800 2017 $5,490,000 $2,141,800 2018 $11,180,000 $4,417,800 2019 $11,400,000 $4,505,800 2020 $11,580,000 $4,577,800 2021 $11,700,000 $4,625,800 Instructions for Form 706 (Rev. 09-2021) -9-