Last year, your client and his wife gave their adult son a one-third interest in a commercial office building. Each has a one-third interest as tenants in common. If your client dies while still owning the property as a tenant in common, an estate tax implication of this form of property ownership is that

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter9: Acquisitions Of Property
Section: Chapter Questions
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Question ID: 1251845

Last year, your client and his wife gave their adult son a one-third interest in a commercial office building. Each has a one-third interest as tenants in common.

If your client dies while still owning the property as a tenant in common, an estate tax implication of this form of property ownership is that

 
 
A)
one-third of the value of the property will be included in your client's gross estate.
 
 
B)
one-half of the value of the property will be included in your client's gross estate.
 
 
C)
the entire value of the property will be included in your client's gross estate because his estate cannot prove contribution by the other tenants in common.
 
 
D)
your client's estate will be entitled automatically to a marital deduction of one-half of the date-of-death value.
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