26. At the time of his death in January 2013, Dick owned land with his mother, L

Question

26.  At the time of his death in January 2013, Dick owned land with his mother, Lisa, as tenants in common. Dick  and Lisa purchased the property in 2010 with each paying $150,000 of the $300,000 purchase prince. The fair market value of the entire land was $600,000 on the date of Dick

At the time of his death in January 2013, Dick owned real estate in the name of Dick and his sister Ellen, as joint tenants with right of survivorship. Dick and Ellen purchased the property in 2010 with each paying $150,000 of the $300,000 purchase prince. The fair market value of the entire land was $600,000 on the date of Dick's death and $600,000 on the date that was six months after Dick's death. Dick's mother was his sole beneficiary under his will. The property owned by Dick and Ellen has not been sold within six months after Nick's death. Dick's gross estate for federal estate tax purposes was $1,000,000 on the date of his death. What is Ellen's total basis in the real estate after Dick's death?

Explanation / Answer

b. $300,000.

because Lisa's share was $150,000 . Now since fair value of the property is $600,000 . Therefore one half share in total basis i.e $300,000 .

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