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This year Drake and his son purchased real estate for an investment. The price of the...

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Accounting

This year Drake and his son purchased real estate for aninvestment. The price of the property was $1,200,000, and the titlenamed Drake and his son as joint tenants with the right ofsurvivorship. Drake provided $900,000 of the purchase price and hisson provided the remaining $300,000. What is the amount of thetaxable gift?

  • $300,000.

    Incorrect

  • $600,000.

  • $285,000.

  • $1,200,000.

  • None of the choices are correct - Drake did not make a taxablegift.

Answer & Explanation Solved by verified expert
3.6 Ratings (425 Votes)
The correct answer is 285000 Reasoning The property here is purchased under joint tenancy with the right of survivorship Under estate law in case of joint tenancy two or more persons have coequal ownership over the property having equal    See Answer
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