Question
At the time of her death, Lola owns property worth 5,000,000. Other information regarding her affairs is as follows. Unpaid pledge to the building fund
At the time of her death, Lola owns property worth 5,000,000. Other information regarding her affairs is as follows.
Unpaid pledge to the building fund of her church 50 000
College graduation gift she had promised her grandson 20 000
Local property taxes owed( accrued prior to death) 100 000
Casualty loss to uninsured vacation home(fire occured one month before death) 500 000
Mortgage owed on personal residence 800 000
All of these items(except the casualty loss) were paid by her estate, and none were deducted in Form 1041(income tax return of the estate). What is Lola's taxable estate?
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