Anne owned a home with her sister as joint tenants with rights of survivorship.

Question

Anne owned a home with her sister as joint tenants with rights of survivorship. The home was inherited by Anne and her sister from their mother. Anne died and is survived by her sister. Which of the following statements is correct?

a. the full value of the home must be included on Part 2 of Schedule E minus any consideration that the sister has furnished (and can prove)

b. the full value of the home must be included on Part 2 of Schedule E regardless of any consideration the sister has furnished.

c. one-half of the value of the home must be included on Part 2 of Schedule E

d. one-half of the value of the home must be included on Part 2 of Schedule A

Explanation / Answer

Ans C one-half of the value of the home must be included on Part 2 of Schedule E

Explanation: On Estate form 706, qualified interest in shown on part 1 of schedule E and other jointly owned interest are shown on part 2.

For the property received under inheritance only proportionate share of tenants are included, here there is only two joint tenants so only one half of the value will be included.

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