At the time of her death on June 6, 2017, Mary owned the following assets Taupe
Question:
At the time of her death on June 6, 2017, Mary owned the following assets
● Taupe Corporation stock(cost $400,000, FMV $800,000). On May 4, Taupe declared acash dividend, payable on June 15, to shareholders as of the record date(the ex-dividend date) of June 4. Mary's executor received the $40,000 dividend on the scheduled payment date(June 15)
● City of Boise bonds(cost $800,000, FMV $780,000). Interest accrued to June 6 was $42,000. The executor eventually collected $50,000 (included post-death accrual of $8,000) on July 20.
● A note which Mary the right to receive $100,000 per year for the next 2 years (2017 and 2018) and the possible right to receive $100,000 for the following 2 years, 2019 and 2020, but only if Mary were living(which she was not). At the time of Mary's death the value of the guaranteed right to receive $100,000 in 2017 and 2018 is $185,000 and the value of Mary's contingent right to receive $100,000 in 2019 and 2020(if she survived) was $76,000. Mary obtained the note when she sold her house to a third party in an arms-length transaction.
As to these transactions, how much is included in Mary's gross estate? ________
As to these transactions, how much is included on the Estate of Mary's income tax return for the year of death?
South Western Federal Taxation 2016 Corporations Partnerships Estates and Trusts
ISBN: 9781305399884
39th edition
Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young