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In: Accounting

Jonathan's taxable had prior taxable gifts of $4,500,000 and an estate valued at his death of...

Jonathan's taxable had prior taxable gifts of $4,500,000 and an estate valued at his death of $8,700,000. His executor paid the following expenses: Attorney fees, $7,500, Accountant Fees $3,000, Funeral Costs $15,000, and appraisal fees $1,500. What is Jonathan's taxable estate?

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Expert Solution

Computation of taxable estate of Mr. Jonathan for 2018
$ $
Gross Estate 87,00,000
Less: Allowable expenses & debts
Expenses : Funeral costs        15,000
Expenses : Attorney fees           7,500
Expenses : Appraisal fees           1,500
Expenses : Accountant fees           3,000
Net Estate 86,73,000
Less:
Exemption available 1,11,80,000
Less: Taxable gifts      45,00,000 66,80,000
Taxable Estate 19,93,000
Notes:
1) It is assumed that this is the computation of taxable estate for 2018.
2) Exemption is deductible upto the available amount less if any taxable lifetime gift.

ekkarill92 answered 2 years ago
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