In 2005, Noah and Kelly acquire real estate for $2,000,000, with Noah furnishing $400,000 of the purchase price and Kelly providing the balance. Title to the property is listed as: "Noah and Kelly, equal tenants in common." Noah dies first in 2013, when the real estate is worth $4,000,000.
a. Were there any tax consequences in 2005? Explain.
b. How much, as to the real estate, is included in Noah's gross estate?
c. As to parts a. and b., would it make any difference whether Noah and Kelly are brother and sister or husband and wife?

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The Answer of In 2005, Noah and Kelly acquire real estate for $2,000,000, with Noah furnishing $400,000 of the purchase price and Kelly providing the balance. Title to the property is listed as: "Noah and Kelly, equal tenants in common." Noah dies first in 2013, when the real estate is worth $4,000,000.
a. Were there any tax consequences in 2005? Explain.
b. How much, as to the real estate, is included in Noah's gross estate?
c. As to parts a. and b., would it make any difference whether Noah and Kelly are brother and sister or husband and wife?

In 2005, Noah and Kelly Acquire Real Estate for $2,000,000