Mildred purchases a mountain home with her granddaughter, Michelle, for $400,000. Mildred pays $100,000 at closing and takes out a loan in her individual name for the $300,000 balance of the purchase price. Michelle, however, agrees to provide considerable services in renovating the cabin on the property. After the cabin is renovated, the property is appraised at $600,000. Mildred then dies. Theoretically, what portion of the property’s value should be included in Mildred’s gross estate? State any additional information you may need to answer the question.

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In this case Mildrel bought 400000 from Michelle and at the ti... View the full answer