At her death Emily owned real estate worth $2.5 million and other property worth $1 million. Property taxes of $200,000 were accrued on the real estate at the time of Emily's death. Which of the following is a true statement?

Question

Quizplus · Accepted Answer

The gross estate includes both the real estate and other property, so Emily's gross estate is $3.5 million ($2.5 million + $1 million). However, property taxes are deductible from the gross estate, so her adjusted gross estate is $3.3 million ($3.5 million - $200,000). The taxable estate is determined after other deductions and exemptions are taken into account, so we cannot determine it based on the information given. The estate tax base is also not given by the information provided.

At Her Death Emily Owned Real Estate Worth $2