In 1980,Mandy and Hal (mother and son)purchased land for $600,000 as joint tenants with right of survivorship.Of the $600,000 purchase price,Mandy provided $300,000 and Hal $300,000 (of which $200,000 had been received as a gift from Mandy).In 2012,Hal dies first when the land is worth $3,000,000.As to the land,Hal's gross estate must include:

Question

Quizplus · Accepted Answer

Hal's gross estate must include the portion of the land that he effectively owned. Since he contributed $100,000 of his own money (after accounting for the $200,000 gift from Mandy), his ownership percentage is 1/6 of the total purchase price. Therefore, 1/6 of the $3,000,000 value at the time of his death is $500,000.

In 1980,Mandy and Hal (Mother and Son)purchased Land for $600,000