O Property held by decedent and surviving spouse jointly as

O Property held by decedent and surviving spouse jointly as tenant by the entirety. O Property passing to a non-citizen surviving spouse that is transferred to a qualified domestic trust. Mark for follow up Question 28 of 105 Ms. Ocean died July 15, 2016. Her gross estate is large enough that Form 706 must be filed. Her personal residence was included in her gross estate, which had a date of death value of $780,000. Her cost in the home was $295,000. Ms. Ocean owed $120,000 to City Bank on a mortgage secured by the home. The estate is liable for this debt. The home is in Ms. Ocean\'s name with her niece designated for transfer on death. What value should be reported on Form 7 personal residence, and on which schedule should it be repotted? 06 for Ms. Ocean\'s O$390,000 on Schedule E $660,000 on Schedule A $660,000 on Schedule E O $780,000 on Schedule A.

Solution

Answer: $780,000 on schdule A

Explanation:

The value to be shown in Schdule A of Mr. Ocean should be $780,000under the form 706. The outstanding mortgage loan of $120,000should be shown separately under the schdule K of Form 706 since the estate is liable for this debt.