Tom and elizabeth purchase land for 1 million-tom furnishes


Question: Tom and Elizabeth purchase land for $1 million-Tom furnishes $400,000 and Elizabeth $600,000 of the purchase price. Title to the property is listed as joint tenants with right of survivorship. Elizabeth dies first ten years later when the land is worth $2 million.

a. How much of the property is included in Elizabeth's gross estate?

b. What is Tom's income tax basis in the property?

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