Question

Anne owned a home with her sister as joint tenants with rights of survivorship. The home was inherited by Anne and her sister from their mother. Anne died and is survived by her sister. Which of the following statements is correct? OThe tull value of the home must be included on Part 2 of Schedule E, minus any consideration that the sister has furnished (and can OThe full value of the home must be included on Part 2 of Schedule E, regardless of any consideration the sister has funished One-half of the value of the home must be included on Part 2 of Schedule E Mark for tollow up

Answer 1

Question : ?

Solution: One-half of the value of the home must be included on Part 2 of Schedule E

Explanation: The full value of the home must be included on Part 2 of Schedule E and can deduct expenses, however must prorate them,

Question : 42

Solution:-

A specific statement in the will of a person that specifies the amount that will be gifted to charity after the death of the will holder (testator) is called as the charitable bequest.

Types of bequest:

Specific bequest: States a certain amount or part of property (as per the will of the testator)to be gifted to someone.

Percentage bequest: Sets the percentage (5%) of the total value of the total property.

Residual bequest: Allows all the property to be gifted after settling any specific bequests and taxes on the property pending.

Residuary estate: it is the part of property that is not devised to anyone in the will. The person who takes such property is called as residuary beneficiary.

In case of all the heirs to a property predecease the testator; the whole property can be transferred to charity.

Thus the maximum deduction for a charitable bequest of residuary estate will be equal to the taxes pending.