During the year, D transfers title to certain investment real estate to her close friends E and F.E is given a life estate in the property and F is given the remainder interest.If the value of the real estate is $200,000 at date of gift, the amount of the taxable gift made by D is $187,000.

Question

Quizplus · Accepted Answer

The taxable gift made by D is equal to the fair market value of the property minus the value of the life estate. In this case, the value of the life estate is $13,000 ($200,000 - $187,000), so the taxable gift is $187,000.

During the Year, D Transfers Title to Certain Investment Real