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). Hal dies first when the land is worth $3,000,000. As to the land, Hal's gross estate must include:

Question

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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 interest is 1/6 of the total value at the time of his death, which is $500,000 (1/6 of $3,000,000).

Mandy and Hal (Mother and Son) Purchased Land for $600,000