Question

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?

Answer 1

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.