Jean and John Simmons own their home as tenants by the entirety. How much will be counted in John's gross taxable estate upon his death?

In the scenario presented, since Jean and John Simmons own their home as tenants by the entirety, it is important to understand how this form of property ownership affects the inclusion of property in John's gross taxable estate upon his death.

When property is held as tenants by the entirety, each spouse has an equal and undivided interest in the property. Upon the death of one spouse, the surviving spouse automatically inherits the deceased spouse's interest in the property, effectively passing it directly to them without going through probate. However, for estate tax purposes, only half of the value of the property is included in the gross taxable estate of the deceased spouse.

Therefore, in the case of John Simmons, when he passes away, only one-half of the value of the home will be counted in his gross taxable estate. If the home is valued at $350,000 at the time of John's death, then $175,000 (which is half of the total value) is what would be included in John's gross taxable estate. This aligns with the tax treatment of property held by tenants by the entirety, recognizing the shared ownership while also considering the transfer of ownership that occurs upon death.