Tina died in 2020 and left each of her three grandchildren, Avril, Samantha and Tucker, $120,000 in cash. Tina's estate was liable for estate tax. The estate tax is subtracted from these bequests.

Kristen met her fiance, Jerry, when he was an exchange student in Germany during his junior year in college. After a year long courtship, Kristen left her hometown of Frankfurt to move with Jerry to San Antonio, TX. They planned to get married on Valentine's Day of 2020. However, three months after moving to Texas, Kristen was killed in a car accident. During the time of their cohabitation, Kristen had acquired property valued at $200,000.

Karen owns an apartment building in Boulder, CO. She bought it for $60,000 20 years ago. The apartments are old and need a lot of repairs. Since she does not want to invest a lot of money into fixing up the units, she rents them out to low income tenants, as part of a Section 8 program. During the time Karen has owned the property, the vacant land near her property has sold for millions of dollars. In fact, there is a local developer who wants to buy her building and replace it with a shopping center. Currently, the building is worth $250,000. If it were a shopping center, it would be valued at $2,250,000. Karen recently died unexpectedly; her will left the apartment building to her son, Kenny. He never liked the idea of being a landlord, so a year after his mother's death he sold the building to the developer and pocketed $2,000,000. What is Kenny's capital gain?

Kristen met her husband, Jerry, when they were both exchange students in Germany during their junior year in college. After a year long courtship while abroad, Kristen decided that when they returned to the U.S. she would leave her hometown of Dayton, OH to move with Jerry to Raleigh, NC. They married on Valentine's Day of 2020. However, three months after the wedding, Kristen was killed in a car accident. During the time of their marriage, Kristen had acquired property valued at $200,000, which was left to Jerry as a life estate. Kristen's estate qualifies for the unlimited marital deduction.

Desiree recently died after a long illness. Desiree's will left her assets to her niece, Stephanie, and her brother, Saul. Her estate contained a personal residence in St. Louis, MO, two cars, furniture and some stock. An old insurance policy Desiree owned took care of her funeral expenses. Saul, as the executor, paid $2,400 to a lawyer to handle the estate. Saul also paid outstanding bills for property taxes and utilities. There was also a non-recourse mortgage on the home. Which item would not be deductible from the gross estate?