Joe and his younger brother Nick purchased a commercial building together 15 years ago. They own the property as a joint tenancy with rights of survivorship

Joe and his younger brother Nick purchased a commercial building together 15 years ago. They own the property as a joint tenancy with rights of survivorship. At the time of the purchase, Joe, being the older brother, was in a better financial position. Therefore, Joe contributed $200,000 and Nick contributed $100,000 to the purchase price. The property is now worth $750,000.

Question 12: What are Joe and Nick’s ownership shares?

Question 13: What is Joe’s basis in the commercial building?

Question 14: What is Nick’s basis in the commercial building? Question 15: Nick needs cash to start to buy a home. Can he sell his interest in the commercial building? Why or why not?

Question 16: If Joe were to die today, would the commercial building be included in Joe’s gross estate?

Question 17: If so, what is the commercial building’s value in Joe’s gross estate?

Question 18: If Joe were to die today, would Joe’s will direct who received the commercial building?

Question 19: If Joe were to die today, who would own the commercial building?

Question 20: If Joe were to die today, what would Nick’s new basis in the commercial building be?