estate_tax_examples - Topic: Estate taxes Compute the gross...

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Topic: Estate taxes – Compute the gross estate & the taxable estate 1. Marcia owned a $100,000 life insurance policy on her son George’s life. The cash surrender value (CSV) of the policy was $25,000 when Marcia died this year. 2. George purchased and owned a $100,000 life insurance policy on Marcia’s life (his mother), which he collected when Marcia died. 3. Marcia purchased $100,000 of insurance on her life for $30,000. She gave this policy to her husband Howard four years before she died. 4. Marcia purchased an additional $100,000 of insurance on her life for $35,000. She gave this policy to her son George one year before she died. She paid gift tax of $5,000 on the transfer. 5. Marcia and son George purchase a tract of land, ownership listed as “joint tenancy with right of survivorship”. The real estate was valued at $600,000. Marcia paid $45,000 of the original cost and George paid $15,000. 6. Marcia and husband Howard jointly own additional real estate valued at $1,200,000.
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This note was uploaded on 09/09/2011 for the course TAX 5015 taught by Professor Kelliher,c during the Spring '08 term at University of Central Florida.

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