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Richard died owning a residence worth $750,000, which was encumbered by a purchase money mortgage in the amount of $725,000. Assume that under the relevant

Richard died owning a residence worth $750,000, which was encumbered by a purchase money mortgage in the amount of $725,000. Assume that under the relevant state law, the creditor's remedy is against the property only; that is, the creditor cannot pursue a deficiency claim against Richard if the property is worth less than the outstanding loan balance. How should Richard's estate report these items for estate tax purposes?

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