Question

3. Teresa and her brother Michael decide to purchase a condo together. They both want to use the condo for family vacations. The price of the condo is $620,000. Michael expects to use the condo 60% of the time and Teresa 40% of the time. Michael contributed $372,000 and Teresa contributed the balance. Their ownership percentage equals their contribution percentage. Which interest h type of property tiding must the condo be to refl to reflect their owne a. Community Property b. JTWROS c. Tenancy in Common. d. Tenancy by the Entirety 4. Cody and Chelsi, who are married to each other, own their home together titled as community property. They 200,000. After improvements and a surge in the market, the home is now worth $400,000. If Cody died today and left his share of the home to his daughter Alyssa, what is Alyssa's federal purchased the home three years ago for $ income tax basis in the home? a. $50,000 b. $100,000 c. $150,000 d. $200,000 18, MONEY EDUCATION

Answer 1

3. Tenancy in common : Its an arrangement in which each holder has a separate transferable interest.

Community Property and Tenancy by entirety are arrangements that can be entered into by a married couple.

JTWROS is an arrangement in which holders of the property have equal rights in the property.

4. (d). $200,000

In Community Propertyt, the properties purchased by the couple are shared equally by them. In the event of death of one, the share of the party who dies gets tranfered to this/her heir in the same proportion.

As the current value of the house is $400,000, it will be split equally between Alyssa and Chelsi.