Ms Ocean died died July 15 2017. Her gross estate is large enough that 706 must

Question

Ms Ocean died died July 15 2017. Her gross estate is large enough that 706 must be filed. Her personal residence was included in her gross estate, which had a date of death value of $780000. Her cost in the home was $295000. Ms Ocean owed $120000 to city bank on a mortgage secured by the home. The estate is liable for the debt. The home is in Ms Ocean name with her niece designated for transfer on death. What value should be reported on 706 for ms Oceans personal residence and on whitcj schedule should it be reported? $390000 on schedule E $660000 on schedule A $660000 on schedule E $780000 on schedule A Ms Ocean died died July 15 2017. Her gross estate is large enough that 706 must be filed. Her personal residence was included in her gross estate, which had a date of death value of $780000. Her cost in the home was $295000. Ms Ocean owed $120000 to city bank on a mortgage secured by the home. The estate is liable for the debt. The home is in Ms Ocean name with her niece designated for transfer on death. What value should be reported on 706 for ms Oceans personal residence and on whitcj schedule should it be reported? $390000 on schedule E $660000 on schedule A $660000 on schedule E $780000 on schedule A $390000 on schedule E $660000 on schedule A $660000 on schedule E $780000 on schedule A

Explanation / Answer

Schedule A&E

If the decedent was liable for a mortgage on the property, report the mortgage in the property description but include the full value of the property on this schedule and deduct the mortgage on Schedule K. If a mortgage is chargeable against the property, deduct the mortgage from the amount reportable on this schedule.

The amount of Mortgage will be deducted from Date of Death Value.

So, reportable Amount = 780000-120000

= $ 660,000

The answer is $660000 on schedule A

Note:- Schedule E is for jointly owned property.

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