Praneh Patel,a Widower,died in March of the Current Year

question 26

Essay

Praneh Patel,a widower,died in March of the current year.His gross estate is $5,325,000,and at the time of his death,he owed debts of $40,000.His will made a charitable bequest of $280,000 and left the rest of his property to his children.His administrative expenses are estimated to be about $55,000.What tax issues should the estate's CPA consider when preparing Praneh's estate tax return and his estate's income tax return?

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Definitions:

Circuit

In electronics, a circular path through which an electric current flows or moves; in legal terms, a geographical area of jurisdiction for federal courts.

General Jurisdiction

The court's authority to hear all kinds of legal disputes, typically regarding cases that are not limited by the subject matter or geographic area.

Trial Court

A court of law where cases are tried in the first instance, as opposed to an appeals court.

State's Trial

A legal proceeding held in a state court, which can involve criminal, civil, or administrative matters within that state's jurisdiction.