Ted Died on May 3

question 53

Multiple Choice

Ted died on May 3. At the time of his death, he owned a beach house valued at $250,000. On June 10, the beach house was completely destroyed by a hurricane and there was no insurance coverage. If the executor elects to use the alternate valuation date, the executor will

• A) take a casualty loss of $250,000 on the estate tax return.
• B) include the beach house in the gross estate at $250,000.
• C) take a casualty loss of $250,000 on the estate's income tax return.
• D) include the beach house in the gross estate at $0.

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Definitions:

Gage

A device used for measurement or to determine conformity to a set of specifications, often used in manufacturing and engineering to ensure quality and precision.

Extra Material

Additional material provided beyond the specified dimensions to allow for finishing or machining.

Flat Sheet

A type of raw material that comes in flat panels, typically used in manufacturing or construction; it can be cut and shaped into various parts and forms.

Without Cutting

A manufacturing or shaping process that does not involve removing material, such as bending, casting, or forming.