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saul85 [17]
3 years ago
5

In 2005, mandy and hal (mother and son) purchased land for $600,000 as joint tenants with right of survivorship. of the $600,000

purchase price, mandy provided $300,000 and hal $300,000 (of which $200,000 had been received as a gift from mandy). in 2016, hal dies first when the land is worth $3,000,000. as to the land, hal's gross estate must include
Business
1 answer:
Romashka [77]3 years ago
4 0

Answer:

$500,000

Explanation:

Actual amount contributed by Hal to the land purchase = Contribution - Gift from mandy = $300,000 - $200,000 = $100,000

Hal's contribution weight in the land = 100,000 ÷ 600,000 = 1 ÷ 6

Hal's gross estate in the land = $3,000,000 × (1 ÷ 6) = $500,000

Therefore, as to the land, hal's gross estate must include $500,000.

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