Fair Market Value

Date of Death

Six Months Later

Apartment building

$4,400,000

$4,380,000

Stock in Red Corporation

1,200,000

1,300,000

Stock in Tan Corporation

900,000

700,000

Accrued rents on the apartment building are as given: $70,000 (date of death) and $60,000 (six months later). To pay expenses, the executor of Arlene's estate sells the Tan stock for $600,000 five months after her death.

a. If the § 2032 election is made, Evaluate how much is included in Arlene's gross estate?

b. As to part (a), consider that the Tan stock is sold for $600,000 eight months (rather than five months) after Arlene's death. Find how does this change your answer, if at all?

c. Find how much is included in the gross estate if the § 2032 election is not made? (Jr. 18-45-18-46)
Jr., William H. Hoffman,, William A. Raabe, James E. Smith, David M. Maloney. South-Western Federal Taxation 2013: Corporations, Partnerships, Estates and Trusts, 36th Edition. South-Western, 2016-04-11.