Reference no: EM132966331

Question - Rona Grant gifted $50,000 of stock to her grandson, Rick, in 1996. The stock pays $5,000 of dividends annually. In 1998, Rona and Rick purchased unimproved real estate as joint tenants with the right of survivorship for $210,000, paying $10,000 down and executing a nonrecourse note for $200,000. Rona and Rick paid interest and $10,000 of principal each year for ten years. Rick used the dividends received on the stock to make his initial down payment and paid the subsequent note payments with dividends and $5,000 from wages. Rona died in the current year when the property was worth $640,000. What amount of the $640,000 is excluded from Rona's estate?