Ms Bouvier died Novenber 20, 2017 with an estate large enough to require her to

Question

Ms Bouvier died Novenber 20, 2017 with an estate large enough to require her to file form 706. Included in the gross estate was her personal residence which had a date of death value of $780,00 Her cost in the home was $275,000. Ms Bouvier owed $98,000 to City bank on a mortgage secured by her homeThe estate is liable for this debt. Ten Years before her debt Ms Bouvier added her companion Mr Platinum as jint tenants on the property. All consideration for the property was paid by Ms Bouvier so no value is placed on Mr Platinum's interest in the propertyWhat value should be reported on Form 706 for her personal residence and which schedule should it be reported on? A) $682,00 on Schedule A B) $682,000 on Schedule E C) $780,000 on Schedule A D0 $780,000 on Schedule E

Explanation / Answer

Ans is D $780,000 on schedule E

Explanation: Since property has joint tenant and joint tenant is reported on schedule E of Form 706, also

Value of 780,000 is reported as gross estate and a deduction for $98000 is permissible under section 20.2053-1 under first category.

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