FIN4411 GHA Wk 11
1.Bart and Dana live in a common law state and own their primary residence worth $800,000 as tenants by the entirety. The couple also owns a vacation home in another state titled as JTWROS. The FMV of the vacation home is $400,000. Dana bought an office suite with her business partner and contributed $150,000 toward the $250,000 purchase price. They titled the property as tenants in common. The FMV of the office suite is $320,000. If Dana dies today, what is the value of the real property included in her gross estate? Show your work.
2.Darleen and Leon live in Arizona and acquired all of their property interests while living there. They own a primary residence worth $2.2 million as tenants by the entirety. The couple owns a condo near a Colorado ski resort worth $800,000. Mortgages on the two homes equal $600,000. Darleen inherited money from her father which she deposited in a separate account. She used this money to acquire commercial property for an art gallery. The FMV of the commercial property is $1 million and has a mortgage of $400,000. Assume that Darleen died today. What is the value of her adjusted gross estate? Show your work.
3.Jack, a widower, died this year with a gross estate of $6.6 million. Jack made one taxable gift in his lifetime of $700,000 to his brother last year. The amount of the unified credit used to offset his taxable gift was 229,800. Funeral and administrative expenses cost $140,000. Jack’s debts and mortgages totaled $300,000. What was Jack’s taxable estate? Show your work.
4.What was Jack’s (below) tentative tax base? Show your work.
5.Assuming Jack did not pay gift taxes on any lifetime transfers, how much is Jack’s tentative estate tax? Use the Tax Table below. Show your work.
6.After applying the unified credit, how much is Jack’s Estate Tax Due? Use the Tax Table above. Show your work.
