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is shown to be attributable to consideration furnished by the
survivor, the amount to be excluded from the gross estate is that
portion of the entire date-of-death value of the property which
the consideration furnished by the survivor bears to the total
cost of acquisition and capital additions. Sec. 2040(a); sec.
20.2040-1(a), Estate Tax Regs. (stating for section 2040
purposes, "it makes no difference that the survivor takes the
entire interest in the property by right of survivorship and that
no interest therein forms a part of the decedent's estate for
purposes of administration. The section [2040] has no
application to property held by the decedent and any other person
(or persons) as tenants in common".). The exclusion for the
"consideration furnished" by the other joint tenant can be
expressed mathematically as follows:
Entire value of Property TIMES Survivor's consideration= Amount
(on the date of death or Entire Consideration PaidExcluded
alternate valuation date)
Estate of Goldsborough v. Commissioner, 70 T.C. 1077, 1082
(1978), affd. without published opinion 673 F.2d 1310 (4th Cir.
1982).
Under the scheme of section 2040(a), the amount includable
in a decedent's gross estate does not depend on a valuation of
property rights actually transferred at death, or on a valuation
of the actual interest held by the decedent (legal title);
instead, decedent's gross estate includes the entire value of
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