Felipe died on May 9, 2015. At date of death he owned the following assets: • Ca

Question

Felipe died on May 9, 2015. At date of death he owned the following assets:
• Cash in the bank: $12,000
• ABC Bonds: Fair market value $5,000
• Office building: Fair market value, $300,000
• Stock in Leck Corporation: Fair market value, $10,000
• Personal residence (jointly held with his spouse): Fair market value, $160,000.

In addition, accrued rents on the office building to date of death is $24,000; accrued interest on the bonds at date of death is $200; $400 in dividends are outstanding on the Leck stock (date of record April 30, 2015).

Felipe's gross estate is?

Explanation / Answer

Calculation of Felipe's gross estate
Cash in the bank                                                              $ 12,000
ABC bonds (FMV)                                                            $   5,000
Office building (FMV)                                                     $ 300,000
Stock in leck Corporation                                                 $   10,000
Personal residence (50% share of FMV $ 160,000)             $ 80,000
Accrued rent in office building $ 24,000
Accrued interest on bond $    200
outstanding divinded on leck stock $    400              
Gross Estate                                                                 $ 431,600

Note : As the personal residence is held jointly with spouse, we assume it is held on equal sharing basis and accordingly Felipe share will be 50% in the value of personal residence

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