Assume the same facts as in Problem 41, except that Gordon and Fawn are husband and wife
Question:
Assume the same facts as in Problem 41, except that Gordon and Fawn are husband and wife (not brother and sister).
a. What are the gift tax consequences when the real estate was purchased?
b. What are the estate tax consequences upon Gordon’s death?
c. Under part (b), would your answer change if it was Fawn (not Gordon) who died? Explain.
Data From Problem 41
Gordon purchased real estate for $900,000 and listed title to the property as “Gordon and Fawn, joint tenants with right of survivorship.” Gordon predeceases Fawn when the real estate is worth $2,900,000. Gordon and Fawn are brother and sister.
a. Did a gift occur when the real estate was purchased? Explain.
b. What, if any, are the estate tax consequences upon Gordon’s death?
c. Under part (b), would your answer change if it was Fawn (not Gordon) who died? Explain.
Step by Step Answer:
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman