Problem
Scenario 2: Karen died in February of 2014. She had a gross estate of $5,000,000. She had debts of $400,000. The expenses for the funeral were $25,000. In addition, there were administrative costs of $200,000. She had a will that transfers a piece of real estate (basis: $100,000; FMV $700,000) to her favorite charity (Save the Kids) and left her husband $2,000,000.
Calculate the marital deduction.
Calculate total deductions.
Calculate the taxable estate.
Calculate the estate tax base.