TAXATION MACMOD

Estate Tax MAY 2014

TAX TABLE
The estate tax shall be computed on the basis of the value of the net estate in accordance with following graduated rates
(effective Jan. 1, 1998)
If the net estate is:
Over But not over The tax shall be
- 200,000 0
P 200,000 500,000 5% of the excess over P 200,000
500,000 2,000,000 P 15,000 + 8% of the excess over 500,000
2,000,000 5,000,000 135,000 + 11% of the excess over 2,000,000
5,000,000 10,000,000 465,000 + 15% of the excess over 5,000,000
11,000,000 1,215,000 + 20% of the excess over 10,000,000
1. Basic Concepts: 20%) xx
1. _______________ a mode of transferring and 14.
acquiring ownership, rights, interest and obligations 2.
from a dead individual. 15. Decedent married 16. 17.
2. _______________ refers to all property rights and 18. Gross estate 19. 20.
obligations of a person which are not extinguished by
his death and also those which accrued thereto since 21. Exclusive of the decedent 22. 23.
the opening of succession; subject matter of P xx
succession. 24. Common property of the 25. 26.
3. _______________ a person whose property is couple xx P xx
transmitted thru the succession whether or not he left 27. Allowable deductions 28. 29.
a will. 30. From exclusive property 31. 32.
4. _______________ a person whose property is
xx
transmitted thru succession with a will.
33. From common property 34. 35.
5. _______________ a person called to the succession
either by a will or by provision of law. xx xx
6. ______________ a person who inherits personal or 36. Net estate before share of 37. 38.
movable property by a will. surviving spouse xx
7. _______________ a document wherein in his 39. Less: Share of surviving 40. 41.
handwriting an individual makes known his wishes spouse xx
concerning the disposition of his estate after his death. 42. Net estate before special 43. 44.
8. _______________ the person to whom the property deductions xx
or property rights is transferred. 45. Less: Deduction for family 46. 47.
9. _______________ a person appointed by a testator to
home/medical exp./s.deductions
carry out the provisions of the will.
10. _______________ a person appointed by the court in x
the absence of an executor. x
11. _______________ one carried out according to the 48. Taxable net estate 49. 50.
wishes of the testator to express in a will executed in a P xx
form prescribed by the law (voluntary). 51. Estate tax due (0%-20%) 52. 53.
12. _______________ one that takes place by operation P xx
of law (involuntary). 54. *Computation of the share of surviving
13. _______________ succession affected party by will
spouse
and partly by operation of law.
55. Gross common property of 56. 57.
14. _______________ tax imposed upon gratuitous
transfer of properties. the H & W P xx
15. _______________ portion of the estate reserved to 58. Less: Deductions from 59. 60.
the compulsory heirs. common property
2. x
3. Formula for computation of TNE: x
1. 61. Net 62. 63.
4. Decedent single 5. xx
6. Gross estate 7. P xx 64. Divided by 65. 66.
8. Less: Allowable 9. xx
2
deductions 67. Share of the surviving 68. 69.
10. Taxable net estate 11.
spouse P xx
Pxx 70.
12. Estate tax due (0%- 13. P

71.

72. Your mind is a magnet. Continue to dwell on what you want with a strong belief and you will achieve it.

73. - A. Matthews

74.

3. 96. 97.
75. Estate tax due 76. 98. Are involved together with limitation A) 99.
P xx 100. Total actual E.T. paid to all FCs 101.
77. *Deduct estate tax credit for the tax paid 78. P xx
abroad xx 102. Or TNE, all FCs/TNE, W x E.T. due in 103.
79. Estate tax still due 80. Phil. xx
P xx 104. Allowable tax credit (whichever is lower) 105.
81. *Formula for estate tax credit: 82. P xx
83. Under Limitation (used it only 1 foreign country is 106.
involved: By country limitation.) 107. Note: If there are 2 or more FCs both limitations
84. 85. (A &B) should be used, then get whichever is lower
86. Actual E.T. paid to FC 87. between the two as the final allowable tax credit.
P xx
88. Or TNE,FC/TNE, W x E.T. due in the Phil. 89. 108. EXEMPTIONS AND EXCLUSIONS FROM THE
xx GROSS ESTATE
90. Allowable tax credit (whichever is lower) 91.
92. For the foreign country 93. A. Under Sections 85 & 86, NIRC
P xx 1. Capital or exclusive property of the surviving
94. Limitation B: (by total, used if 2 or more 95. spouse.
foreign countries

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 2.
Properties outside the Philippines of a Non-
Resident Alien decedent
3. Intangible personal property in the Philippines of a
Non-Resident alien under the Reciprocity Law.
109.
B. Under Section 87, NIRC
1. The merger of usufruct in the owner of the naked
title.
2. The transmission or delivery of the inheritance or
legacy by the fiduciary heir or legatee to the
fideiconussary.
3. The transmission from the first heir or legatee in
favor of another beneficiary in accordance with the
desire of the predecessor-similar to transfers
passing S.P.A.
4. All bequests, devises, legacies, or transfers to
social welfare, cultural, charitable institutions, no
part or the net income of which insures to the
benefit of any individual provided that not more
than 30% of the said bequests, devises, legacies,
or transfers shall be used by each institution for
administrative purposes:
110.
C. Under Special Laws
1. Benefits from GSIS by reason of Death
2. Benefits from SSS by reason of Death
3. Benefits from Philippines and US government for
war damages
4. Benefits from US Veteran Administration
5. Retirement benefits of officials/employees of
private firms
6. Life insurance proceeds on insurance policy upon
his own life, where the beneficiary is a third
person, and the designation is irrevocable
7. Life insurance proceeds on insurance policy (group
insurance) taken out by the employer on the
employees life regardless of who is the beneficiary
and the designation.
111.
112. REVIEW ON ADMINISTRATIVE PROVISIONS
ESTATE TAX
1. What is a notice of death?
113. It is a written notice from the executor,
administrator, or any of the legal heirs, as the case
may be, informing the Commissioner of the Internal
Revenue about the decedents death.
2. When should the notice of death be filed?
114. Within two (2) months after the decedents
death or within 2 months after the executor or
administrator shall have qualified.
3. Is it required in all cases of death?
115. No, only where the gross value of the
estate exceeds P20,000
4. Is an estate tax return required to be filed in all cases?
116. No, only where the gross value of the
estate exceeds P200,000
5. How should the return be filed? What information
should be contained?
117. It shall be filed under oath and in
duplicate. It should show the following:
a. The value of the gross estate at the
time of the decedents death, or in case of non-
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resident alien decedent, that part of his gross
estate in the Philippines;
b. The allowable deductions under
Section 86;
c. Such other information as may be
necessary to establish the correct tax due.
118.
6. What is the additional requirement if the gross estate
exceeds P2,000.000?
119. The estate tax return shall be accompanied
by a statement showing:
a. Itemized assets of the decedent with their
corresponding gross value at the time of his death,
or in case of non-resident alien decedent, that part
of his gross estate in the Philippines;
b. Itemized deductions from the gross estate allowed
under Section 86;
c. The amount of tax due whether paid or still due
and outstanding duly certified by a CPA.
120.
7. What is the time for filing of the estate tax return? It is
extendable?
121. It shall be filed within six (6) months after
the decedents death. In meritorious cases, the BIR
Commissioner may give a reasonable extension of the
time, not exceeding 30 days.
122.
8. Where and to whom it should be filed?
123. The return shall be filed with the RDO,
collection agent or duly authorized treasurer of the
municipality (or city) in which the decedent was
domiciled at the time of his death, or if there be no
legal resident in the Philippines, the with the Office of
the BIR Commissioner.
9. When should the estate tax be paid?
124. At the time the return is filed by the
executor, administrator or the heirs. (Pay as you file
system)
10. May the time for payment be extended?
125. Yes, in meritorious cases, if payment of
such tax should cause undue hardship upon the estate
or any of his heirs, the BIR Commissioner may extend
the time as follows:
a. If the estate is settled through the
courts (juridically) 5years.
b. If the estate is settled through extra-
juridically 2 years.
126.
11. Who is liable to pay the estate tax?
127. It shall be paid by the executor or
administrator before delivery to any beneficiary of his
distributive share of the estate. Such beneficiary shall
be subsidiary liable for the payment of such portion
estate tax as his distributive share bears to the value
of the total net estate.
12. What if there is no executor or administrator appointed
or qualified?
128. Any person in actual or constructive
possession of any property of the decedent.
13. Is the tax a personal liability of the administrator or
executor?
P1.502A
 129. Yes, under Section 85 of NIRC 10. _____________ Funeral expenses of a NRA decedent
in the Phil. P85,000 gross estate worth P2,000.000
14. May he be discharged from such personal liability?
40% from Philippines.
How?
130. Yes, by making a written application to the 11. _____________ Transfer for public purposes made
BIR Commissioner for the determination of the estate inter vivos, P1M.
tax and his discharge from personal liability. He shall
12. _____________ A land worth P1M when inherited 4
thereafter be notified by the BIR Commissioner and
years ago by the decedent from his father with
upon payment of the amount of which he is notified,
mortgage of P200,000, 60% of which was paid by the
he shall be discharged from such personal liability and
decedent before he died . FMV of land upon
shall be entitled to a receipt or writing showing such
deathP1,500,000. Gross estate is P8M and deductions
discharge.
reached P750,000 40% of which represents ELIT &
15. May a judge allow the execution or administrator to TPP. Compute for VD only.
deliver a distributive share to an heir at anytime?
13. _____________ Loss of car by theft, occurring 8
131. No, unless the executor or administrator
months after the decedent death, value of car
can show a certification from the BIR that the estate
P300,000, 60% to be paid by insurance.
tax has been paid.
14. _____________ Transfer for public purposes donated
16. What is the duty of a bank upon knowing of the death
by the decedent to Manila City Hall (shown in the will)
of a person who maintained a joint account with
P200,000.
another?
132. It shall not allow any withdrawal by a 15. _____________ Unpaid mortgage of P200,000 on a
surviving depositor from the said joint account unless P1,1000,000 house shown in the gross estate net of
the BIR Commissioner has certified that the estate tax the P200,000 mortgage.
has been paid. However, the administrator of the
16. _____________ The decedents administrator claims
estate or any one of the heirs of the decedent may
the following funeral expenses:
w/draw without such certificate an amount not
exceeding P20,000.00 upon authorization by the BIR 134. Expenses of internment 135. P
Commissioner. 40,0
00
133. EXERCISES/PROBLEMS 136. Cost of the burial lot (paid 137.
paid by friends & relatives 138. 2
A. State the amount of allowable deductions from the 0,00
gross estate in each of the following: 0
1. _______________ Gross estate of P8,000,000 and 139. Fees for performance of rites 140.
incident to internment 141. 1
funeral expenses of P250, 000.
0,00
2. _______________ Unpaid taxes of the decedent P3M, 0
142. Mourning clothing of widow & 143.
25% of w/c accrued after death already.
unmarried minor children 144. 5
3. _______________ Receivable of P75,000 from an ,000
insolvent debtor whose ratio of assets to liabilities is 145. Expenses during the wake before 146.
burial (paid by uncle, 25%) 147. 2
1:3
0,00
4. _______________ Hospitalization expenses until 0
148. Obituary notice 149. 3
death: P3,000,000, 50% incurred 1 yr. Prior to death
,000
but only of which is supported by receipts. 150. Card of thanks 151. 2
,000
5. _______________ Expenses for the probate of a will
152.
including P10,000 facilitation fee for a court 153. The allowable funeral expenses assuming the
personnel, P100,000: amount paid to broker to convert decedents gross estate is:
some property in the estate to cash as authorized by 154. a. P2,000,000
the court P50,000. 155. b. P1,500,000
156.
6. ______________ P75,000 indebtedness with interest B. Determine whether the following properties are
at 20% p.a. contracted 3months before death, not conjugal/community or exclusive:
notarized and a deed of mortgage P20,000, contracted 157. 158. ACP 159. CPG
6 months before death at 24% p.a. 1. Property acquired before 160. 162.
marriage 161. 163.
7. ______________ P100,000 note payable notarized 2. Property acquired during 164. 166.
earning 18% p.a. dated September 30, 2009. marriage 165. 167.
Decedent died March 15, 2010. a. By onerous Title 168. 169.
b. By gratuitous Title 170. 171.
8. ______________ A conjugal family house with FMV of 3. Income from 2-a earned 172. 174.
P900,000 and exclusive family lot worth P500,00 during marriage 173. 175.
owned by the decedent. 4. Income from 2-b earned 176. 178.
during marriage 177. 179.
9. ______________ Loss by fire of building worth P1M 5 5. Other income of the 180. 183.
months after decedents death, 75% compensated by couple earned during 181. 184.
insurance. Estate was settled in the 6th month. marriage 182. 185.

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6. Property acquired during 186. 188. d. Shares, obligations of bonds issued by any foreign
marriage thru exchange: 187. 189. corporation of such shares, obligations or bonds
a. Using exclusive prop. 190. 191. have acquired a business situs in the Philippines.
b. Using common 192. 193.
e. Shares or rights in any partnership, business or
property
7. Jewelry acquired during 194. 196. industry established in the Philippines.
marriage 195. 197. 226.
a. Using exclusive funds 198. 199.
b. Using common funds 200. 201. 7. A person who inherits personal property thru a will:
8. Property for personal & 202. 205. 227. a. Devisee c.
exclusive use of either 203. 206. Heir
husband or wife 204. 207. 228. b. Legateed.
208. Successor
229.
230. 8. A person who inherits real property thru a
C. Multiple Choice will:
1. It refers to a mode of transferring & acquiring 231. a. Devisee c. Heir
properties left by the decedent. 232. b. Legatee d.
Successor
209. a. Estate transfer c.
233.
Donation
234. 9. Succession wherein the decedent did not
210. b. Succession d.
leave any will:
Execution of a will
235. a. Voluntary succession c. Mixed
211.
succession
2. The property, rights & obligations of a person which
236. b. Legal succession d.
are not extinguished by his death & those which have Testamentary succession
accrued thereto since the opening of succession. 237.
212. a. Inheritance c. Estate 10. Which statement is false about succession:
213. b. Capital d. Devisee a. The successor inherits all the transmissible
214. property of a decedent including his liabilities.
3. The estate tax accrues from the moment of:
b. The successor can be made liable for the
215. a. The fixing of notice of death
obligations of the decedent beyond the value of the
216. b. Expiration of a months after death
217. c. The death of the decedent asset he received.
218. d. The filing of estate tax return c. In succession, fruits and credits maturing after the
219. death of the decedent pass to the heirs even if
220. they were not subjected to estate tax.
221.
d. In succession, the successor can refuse the
222.
223. inheritance.
4. The gift tax paid on a donation mortis causa, if any: 238.
a. Exempts the property from estate tax. 11. One of statement is false:
b. Has no effect since the gift will be subject to a. Estate tax is an excise tax.
another gift tax. b. Estate tax is transfer tax on donation mortis causa.
c. Shall form as a tax credit to be deducted from the c. The object of estate tax is to tax the transfer of the
estate tax due. property from the dead to the living.
d. Is invalid & the tax will not be credited at all. d. Estate tax is synonymous to inheritance tax.
224. 239.
5. Which shall not form part of the gross estate of a 12. Which statement is wrong:
decedent: a. Claims against insolvent person should be included
a. Intangible personal property of non-resident alien in the gross estate even if uncollectible.
decedent without reciprocity law b. Transfer passing under special power of
b. Revocable transfer appointment is excluded from the gross estate.
c. Transfer passing special power of appointment c. Revocable transfers are includible whether or not
d. Life insurance where the executor is the the right to revoke is exercised.
beneficiary & it is irrevocable d. Transfer contemplation of death for adequate
225. consideration is still includible in the gross estate.
240.
6. All of the following are considered intangible in the 13. Which statement is incorrect about funeral expenses
Philippines, except: allowed:
a. Franchise which must be exercised in the Phil. a. The amount allowed is 5% of the gross estate or
b. Shares obligations or bonds which issued by any the actual expenses which ever is lower.
corporation or sociedad anonym organized or b. The actual expenses must be paid from the estate
constituted in the Philippines in accordance with it or chargeable to it.
laws. c. The allowed deduction can never be more than the
c. Shares, obligations or bonds by any foreign actual expenses paid.
corporation 75%.of the business of which is d. The expenses necessary for burial even if paid by
located in the Philippines. friends are also allowed as deduction.
241.

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14. Which statement is incorrect about claims against c. The executor in voluntary succession
insolvent persons? d. The estate itself
a. They must be included in the gross estate even if 23. 1st statement: The court may authorize the executor or
uncollectible. administrator to distribute the estate if in its sound
b. They must be duly notarized. discretion it believes that the heir badly needs his
c. The deduction is only the uncollectible portion. share.
d. The insolvency of the debtor must be established. 252. 2nd statement: The administrator or any of
242. the heirs may however upon authorization of BIR
15. One of the following is incorrect: withdraw from the decedents bank up to P50,000 even
without required certification that the estate tax has
a. Taxes to be deductible must accrue before the been paid.
decedents death. 253. a. True, True c. True,
b. Losses must occur also before the decedents False
death to be deductible. 254. b. False, False d. False,
c. Medical Expenses must be incurred within 1 year True
255.
prior to the decedents death.
24. 1st statement: A died giving B power to appoint a
d. Transfer for public purposes order to be deducted
person who will inherit As house and lot. B, however
must be mortis causa in character.
can only choose among C, D and F. B decided to
243.
transfer the property to C, in Bs will when he was old
16. Which statement is false about vanishing deduction:
already. The transfer from B to C is subject to estate
a. It pertains to a property presently found in the
tax.
gross estate.
256. 2nd statement: During As lifetime, he
b. The property must be previously subjected to a decided to give B as gift his (A) car subject to the
transfer tax or income tax. condition that if B does not become a CPA within 3
c. The property was received by the decedent within years. A shall revoke the transfer. In the second year
5 years prior to his death. however, A died. The car should form part of As gross
estate.
d. The property must be located in the Philippines.
257. a. True, True c. True,
244. False
17. A donation inter vivos but due to thought of death is; 258. b. False, False d. False,
a. Subject to donors tax True
b. Subject to estate tax if for inadequate 259.
25. A died leaving a farm land, In his will, he transferred
consideration
the ownership thereof to B but subject to the
c. Subject to estate tax a bonafide transfer
condition that C will have the right to use the land for
d. Subject to inheritance tax
a period of ten years (Usufruct) in the seventh year,
245.
however, C died and Cs will be surrendered his over
18. In filing the estate tax return , a CPA certificate is
the land to B.
required when:
a. The transfer is subject to donors tax
a. Gross estate exceeds P2,000,000
b. The transfer is subject to estate tax
b. Gross estate reaches P20,000
c. The transfer is both an inclusion and exclusion
c. Gross estate exceeds P200,000
from the gross estate
d. Gross estate reaches P2,000,000
d. The above is a tax-exempt transfer.
246.
260.
19. A died leaving a house and lot to B March 31, 2009
26. The notice of death must be filed when:
which was questioned by C and it is under litigation but
a. Gross estate exceeds P200,000
the parties have stated an extra-judicial settlement.
b. Gross estate exceeds P20,000
The last day for filing the estate tax return is
c. Gross estate reaches P200,000
247. a. April 30, 2010 c.
September 30, 2009 d. Gross estate reaches P2,000,000
248. b. April 30, 2013 d. October 261.
30, 2009 27. One of the following is not an exemption or exclusion
249. from the gross estate:
20. The last day for the payment of estate tax may be
a. Capital or exclusive of the surviving spouse
extended, until;
b. Properties outside the Philippines of non-resident
a. March 21, 20028 c. September 30,
Chinese decedent
2015
c. Shares of stocks of San Miguel Corporation of a
b. September 30, 2011 d. April 30, 2013
non-resident Mexican.
250.
d. The merger of usufruct in the owner of the naked
21. The taxpayer in estate tax is:
title
a. The decedent
262.
b. The estate as a juridical entity 263. Questions 28 through 31 are based on the
c. The heirs or succession following information:
d. The administrator or executor 264. A decedent left the following 265.
251. properties:
266. Land in Italy (with P1M unpaid 267. P2,00
22. The payment of estate tax is a personal liability of mortgage) 0,000
a. The heirs or successors 268. Land in Davao City, Phil. (zonal 269.
b. The administrator in testamentary succession value 750,000) 270. 500,0

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 00 surviving wife 000
271. Franchise in USA 272. 100,0 325.
00 326. He also transferred mortis causa the following:
273. Receivable from debtor in Phil. 274. 50,00 327. 328. 330. FMW 331. FMV
0 329. S - - Death
275. Receivable from debtor in USA 276. 100,0 Price Transfer
00 332. Car, 333. P 334. P1,0 335. P
277. Bank deposit in Phil. 278. 20,00
Mla. 500,000 00,000 800,000
0
336. Land 337. 1,50 338. 2,00 339. 1,00
279. Bank deposit in USA 280. 80,00
, Mla. 0,000 0,000 0.000
0
281. Shares of stocks of PLDT, Phil. 282. 75,00 340. Land 341. 2,00 342. 1,80 343. 3,00
0 , USA 0,000 0,000 0,000
283. Shares of stock of ABC, foreign 284. 125,0 344.
corporation 00
285. 75% of the business in the Phil. 32. If the decedent is a Filipino citizen, his gross estate is:
286.
287. Other personal properties 288. 300,0 a. P10,850,000 c. P10,950,000
00 b. P12,900,000 d. P11,050,000
289. 345.
28. If the decedent is a non-resident citizen his gross 33. If the decedent is a non-resident alien and his country
estate is: does not impose transfer tax on any intangible
290. a. P3,650,00 c. properties left by a Filipino decedent, his gross estate
P2,500,000 is:
291. b. P3,600,000 d. a. P5,350,000 c. P6,500,000
P2,650,000 b. P5,300,000 d. P6,000,000
292.
346.
29. If the decedent is non-resident alien his gross estate
34. The gross estate of a non-resident alien is P2,000,000,
is:
75% of which is from abroad. The actual funeral
293. a. P1,195,000 c.
P1,250,000 expenses totaled to P80,000, of which was paid by
294. b. P945,000 d. his employer. The deductible funeral expense is:
P1,070,000 a. P25,000 c. P6,250
295. b. P20,000 d. P80,000
30. If in the preceding number, reciprocity law can be 347.
applied the gross estate is: 35. Based on the preceding number (the same world G.E.)
296. a. P1,050,000 c. but the decedent is a non-resident citizen, the
P1,250,000
deductible funeral expense is:
297. b. P945,000 d.
P1,070,000 a. P25,000 c. P5,000
298. b. P60,000 d. P80,000
31. Based on the original problem but assuming the PLDT 348.
shares of stocks (PLDT) are not listed in the Local 36. 1st statement: A note payable contracted 11 yrs. ago
Stock Exchange,& there are 1,000 shares at the time is a deduction from the gross estate if notarized.
of death, the companys outstanding shares were 349. 2nd Statement: To be deductible, medical
10,000 shares. Its retained earnings was P2,000,000, expenses must be paid within one year period before
par value per share was P50/share. The gross estate death.
a. True, True c. True, False
should show the said shares at:
b. False, False d. False, True
299. a. Still at P75,000 c. 37. 1st Statement: Unpaid mortgage indebtedness is
P200,000
deductible from the gross estate provided the said
300. b. P250,000 d. P0
301. property subject to the indebtedness is included in the
302. Questions 32 & 33 are based in the following gross estate net of the mortgage indebtedness.
information: 350. 2nd Statement: A donation inter vivos by
303. Building, USA 304. P5,00 the decedent to the Phil. government few months
0,000 before his death is a deduction from the gross estate.
305. House & lot in Bulacan (500 sq. 306. 351. a. True, True c. True,
meters) zonal value is P10,000 per 307. False
square meter 308. 4,500, 352. b. False, False d. False,
000 True
309. Life insurance proceeds, 310. 353.
beneficiary is the wife, the 311. 500,0 354. 38. Purobuto, non-resident Japanese, died
administratix, irrevocable 00 leaving the following:
312. Life insurance proceeds with 313.
another company beneficiary, his son, 314. 200,0 355. Exclusive properties, Philippines 356. P
irrevocable 00 560,00
315. Claims against a debtor who died 316. 0
a year ago (50% collectible) 317. 50,00 357. Conjugal properties, Philippines 358. 42
0 0,000
318. Death benefits from US Veteran 319. 359. Conjugal properties, Abroad 360. 1,8
Administration 320. 100,0 20,000
00 361. Deductions claimed: 362.
321. Death benefits from SSS 322. 40,00 363. Funeral expenses 364. 10
0 0,000
323. Paraphernal property of his 324. 2,000, 365. Judicial expenses 366. 10

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 0,500 P600,000)
367. Unpaid expenses 368. 15
0,500
369. Losses: occurring 3 mos. After 370. 429. Standard Deductions 430. 1,50
death due to fire 371. 12 0,000
0,000 431. Transfer to the Govt, included 432. 30
372. Donation mortis causa to Makati 373. above 0,000
City Hall 374. 18 433. Death Benefits from Employer 434. 20
0,000 0,000
375. Family Home (inc. above), 376. 435. Family home (included above) 436. 2,00
located abroad 377. 1,0 0,000
00,000 437. The allowable varnishing deduction is:
378. Standard deduction 379. 1,0 438. a. P213,000 c.
00,000 P426,000
380. 439. b. P626,000 d.
381. The taxable net estate is: P440,625
382. a. P210,000 c. 440.
P1,900,000 42. The taxable net estate based on the preceding number
383. b. P516,500 d. is:
P2,100,000 441. a. P4,056,250
384. c. P3,974,000
385. 38-a. If decedent is a Filipino citizen, TNE is 442. b. P5,555,300
__________ d. P4,175,000
386. 443.
39. JR, administrator claims the following funeral expenses 43. Mr. Dinakahinga, head of family died on January 15,
for a decedent: 2010, leaving the following properties and obligations:
387. Expenses of interment (paid by 388. P 444. Cash in bank, 50%, donated 445.
friend) 60,000 mortis causa to Natl Govt;50-% to Q.C. 446. P
389. Cost of burial & tombstone 390. govt 300,000
(1/2 paid by relatives) 42,000 447. House and lot in Makati, F. 448. 1,50
391. Other funeral parlor expenses 392. Home 0,000
36,000 449. Personal properties 450. 1,5
393. Expenses during the wake 394. 00,000
395. Before burial 396. 451. Farm lot 452. 8
13,000 25,000
397. Obituary notice 398. 453. Claim against an insolvent debtor 454. 2
7,500 25,000
399. Card of thanks 400. 455. Transfer in contemplation of 456.
3,500 death (gratuitous) 457. 1,50
401. Mourning clothing of friends 402. 0,000
15,000 458. Transfer passing special power of 459.
403. Mourning clothing of 404. appointment 460. 75,0
immediate family members 5,000 00
405. 461. Deduction claimed: 462.
406. If the gross estate is P1,000,000 the 463. Funeral expenses 464. 5
allowable funeral expense is: 75,000
407. a. P75,000 c. P174,500 465. Judicial expenses 466.
408. b. P82,500 d. P 50,000 67,500
409. 467. Donation mortis causa to Quezon 468.
40. Based on Number 39 but the gross estate is City government 469. 150,
P2,500,000 the allowable funeral expenses is: 000
410. a. P75,000 c. P125,000 470. Unpaid mortgage on the farm lot 471.
411. b. P82,500 d. P93.500 75,000
412. 472. Medical expenses (included in the 473.
41. Mr. Nabigla died on March 20, 2011 leaving a gross funeral expense incurred within the 1 474.
estate of P7,800,000 including a land inherited from year period with receipts) 475. 225,
his uncle on October 15, 2007 and a car donated to 000
him on April 20, 2005. The following data pertain to 476. 477.
the two properties: 478. The farm lot was inherited 5 years by
413. 414. Unp 415. FMV 416. FMV the decedent before his death with a value then of
aid upon upon P575,000 and a mortgage indebtedness of P150,000.
Mortga receipt death 479. The total deduction from the gross estate
ge is:
417. La 418. P10 419. P1,8 420. P1,2 480. a. P1,867,500
nd 0,000 00,000 50,000 c. P2,092,500
421. Ca 422. 50, 423. 300, 424. 400, 481. b. P867,500
r 000 000 000 d. P3,092,500
425. 482.
426. The decedent was able to pay of the 483. 44. Based on the preceding number, the
unpaid mortgage on the land before his death. The taxable net estate assuming the farm was inherited 5
deductions are: yrs ago:
427. Expenses, losses, 428. P1,200 484. a. P3,982,500 c. P2,757,500
indebtedness, taxes (excluding the ,000 485. b. P4,982,500 d. P2,672,329
unpaid mortgages above but 486.
including actual funeral expenses of 45. Mr. Jose, Filipino, married died leaving the following
P300,000 and medical expenses of estate:

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 487. Car acquired before marriage by 488. 552. The gross estate is:
Mr. Jose 489. P 553. a. P4,280,000
300,0 c. P2,730,000
00 554. b. P4,480,000
490. Car acquired before marriage by 491. d. P4,160,000
Mrs. Jose 492. 45 555.
0,000 556. 48. The total deductions excluding share of
493. House and lot acquired during 494. 1, surviving spouse and special deduction is:
marriage 500,0 557. a. P655,000 c.
00 P855,000
495. Jewelries of Mrs. Jose 496. 558. b. P891,000 d.
100,0 P1,016,000
00 559.
497. Personal properties inherited by: 498. 560. 49. The deduction for family home is:
499. Mr. Jose during marriage 500. 561. a. P1,000,000 c.
250,0 P900,000
00 562. b. 950,000 d.
501. Benefits from SSS 502. P750,000
50,00 563.
0 564. 50. The taxable net estate is:
503. Retirement benefits from a 504. 15 565. a. P401,500 c.
private firm 0,000 P201,500
505. Proceeds of group insurance 506. 566. b. P326,500 d.
taken by his employer 507. 7 P101,500
5,000 567.
508. Land inherited by the wife during 509. 568. 51. Assuming the commercial land was
marriage 510. 1, received as donation by the decedent from his uncle 3
000,0 years ago, the TNE is __________
00 569. 52. Mr. Bombo, Filipino died on April 10, 2010 with
511. Income earned from the land 512. the following data:
inherited by wife(25% of which was 513. 570. 571. 573. 575. Es
earned after death) 514. 20 572. Gros 574. D tate
0,000 s Estate educti tax
515. The gross estate under conjugal partnership of on paid
gain is: 576. Philippines 577. P 578. P 579. P
516. a. P2,600,000 c. P1,950,000 1,375,0 75,00 -
517. b. P3,600,000 d. P2,200,000 00 0
518. 580. Foreign 581. 300, 582. 1 583.
country A 000 50,00 3,750
46. Under the same problem, the gross estate under
0
absolute community of property is:
584. Foreign 585. 450, 586. 5 587.
519. a. P2,600,000 c. P1,950,000 country B 000 25,00 -
520. b. P3,600,000 d. P2,500,000 0
47. Mr. Malungkot died intestate on September 30, 2011. 588. Foreign 589. 600, 590. 2 591.
He is survived by his wife. An inventory of the estate country C 000 25,00 18,00
showed the following: 0 0
521. 522. FMV 523. 592.
tax 524. Zonal 593. The estate tax due still due is:
declarati Value 594. a. P13,500
on c. P14,000
525. Exclusive estate of Mr. Bayot 595. b. P9,000
526. Commercial land 700 527. P 528. P d. P13,250
sq. m. 850,000 900/sq. 596.
m. 597. Mr. Tantor married under the regime of absolute
529. Residential land 900 530. 580, 531. 1,000 community of property. Survived by his wife, left
sq. m. 000 /sq. m. behind the following properties and charges upon his
532. Conjugal estate: 533. 534. estate:
535. Farm land, 800, sq. 536. 1,30 537. 700/s 598.
m. 0,000 q. m. 599. Real property acquired during the marriage P
538. Residential house 539. 750, 540. 3,000,000
000 600. Family Home, built using community fund
541. Car, Toyota 542. 200, 543. 1,000,000
000 601. Real property received as a gift during the
544. Other property 545. 280, 546. 602. Marriage
000 2,000,000
547. Death benefits (RA 548. 200 550. 603. Lot where family home was built, inherited
4917) ,000 604. During the marriage 400,000
549. 605. Funeral expenses 300,000
551. On January 1, 2011, the commercial land was 606. Taxes and Losses 1,300,000
mortgaged at the Phil. National Bank for P200,000 at 24% 607. Medical Expenses, with receipt, incurred
per annum. The residential house (certified family home is 608. within 1 year period 1,000,000
mortgaged with unpaid balance of P180,000 as of the date 609.
of death). The 900 sq. m. residential land is the family 53. The allowed family home deduction is:
homes lot. Actual funeral expenses amounted to P250,000 610. a. P1,000,000 c.
but of which is non-deductible. Medical expenses P900,000
reached P600,000 but only was incurred with in 1 yr 611. b. P1,400,000 d.
before death. Judicial expenses reached P150,000. P700,000

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612. 55. The net taxable estate is:
54. The deduction for share of the surviving spouse is:
614. a. P 1,250,000 c. P 1,500,000
a. P 2,500,000 c. P 4,000,000
615. b. P 2,500,000 d. P 4,000,000
b. P 1,250,000 d. P 1,500,000 616.
617.
613.
618.
619.
620.
621.
622.
623. Einstein told us that time is just an illusion. When you understand and
accept that there is no time, you can see that whatever you want in the future already
exists. That is why when you write, imagine, or speak of your desire, you should use
the present tense. Radiate your desire in your mind, heart, and body, and see it as here
now.
624.
- The Secrets by Rhonda Byrne

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