At the Time of Her Death, Amber Owns Property Worth

question 72

Essay

At the time of her death, Amber owns property worth $5,000,000. Other information regarding her affairs is as follows. $\begin{array}{llr} \text { Unpaid pledge to the building fund of her church } &\$50,000\\ \text { College graduation gift she had promised her grandson} &20,000\\ \text { Local property taxes owed (accued prior to death) } &100,000\\ \text { Casualty loss to uninsured vacati on home (fire occurred one month before death) } &500,000\\ \text { Mortgage owed on personal residence } &800,000\\\end{array}$
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All of these items (except the casualty loss) were paid by her estate, and none were deducted on Form 1041 (income tax return of the estate). What is Amber's taxable estate?

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Definitions:

Defective Merchandise

Products that are flawed or malfunctioning and do not meet the warranted or expected standard of performance or safety.

Credit Card Applications

Formal requests submitted by individuals seeking to open a credit card account, requiring financial information to evaluate creditworthiness.

Open-end Credit

A revolving credit line that allows a borrower to spend up to a certain limit, repay it, then borrow again.

Annual Percentage Rate (APR)

The annual rate charged for borrowing or earned through an investment, which reflects the actual yearly cost over the term of a loan.