1. Klaus and Kandi are married and purchased a home 15 years ago in Atlanta for $350,000 form an inheritance Kandi received. The home is titled joint tenants with rights of survivorship and is currently worth $800,000. If Klaus were to die today, which of the following statements would be correct?
   1. Nothing would be included in Klaus’s gross estate since he did not contribute anything to the initial purchase and Kandi’s basis would remain $350,000.
   2. $400,000 would be included in Klaus’s gross estate and Kandi’s new basis would be $400,000.
   3. $400,00 would be included in Klaus’s gross estate and Kandi’s new basis would be $575,000.
   4. $400,000 would be included in Klaus’s gross estate and Kandi’s new basis would be $800,000.

Answer rating: 100% (QA)

d 400000 would be included in Klauss gross estate and Kandis new basis would be 800... View the full answer