What are the tax issues for Angie estate

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Problem - Angie and her daughter, Ann, who are the only shareholders of Bluebird Corporation, each paid $200,000 four years ago for their shares in Bluebird. Angie also owns 20% of the stock in Redbird Corporation. The Redbird stock is worth $1,000,000, and Angie's basis in the stock is $100,000. Angie dies in the current year leaving all of her property to her husband, Gary, but Ann wants to be the sole shareholder of Bluebird Corporation. Bluebird has assets worth $8,000,000 (basis of $1,400,000) and E & P of $2,000,000. Angie's estate is worth approximately $16,000,000. Angie has made gifts during her lifetime to Ann. What are the tax issues for Angie's estate, Ann, and Bluebird?

Reference no: EM132646710

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