DMC College Foundations In-house Review (TAX)

ESTATE TAX
1. Transfer taxes are taxes on
a. Property under gratuitous transfer c. Property under onerous transfer
b. Rights and privileges d. onerous transfer
2. Estate tax is imposed upon the
a. Decedent b. property and right transferred c. right to transfer properties d. privilege to receive
3. To prevent undue avoidance of tax, inter-vivos disposition in contemplation of death is subject to
a. Doors tax b. estate tax c. income tax d. excise tax
4. Donation mortis causa transfer of property is effected
a. When the property is received by the heir
b. When the court awarded the ownership of a property to a particular heir
c. Upon the death of the decedent
d. Upon payment of the estate tax.
5. Part of estate which is restricted for the compulsory heirs of the decedent.
a. Free portion b. legitimate portion c. legitime d. restricted property
6. It refers to the supplement or addition to the will.
a. Holographic will b. last will & testament c. accessory will d. codicil
7. Who is the taxpayer in estate taxation?
a. the decedent person b. estate c. administrator d. heir
8. A testator to whom a personal property is given by virtue of a will.
a. Testator b. devisee c. legatee d. executor
9. Which of the following is not a compulsory heir?
a. Legitimate children b. surviving spouse c. illegitimate children d. parents of the decedent
10. Which is not authorized to take charge of the estate during intestate period?
a. Executor b. court c. administrator d. successors
11. A tax resulting from inter-vivos transfer of property may be a
a. Donors tax b. Estate tax c. death tax d. inheritance tax
12. Which of the following could be legally effect transfer of properties through succession?
a. By virtue of a will b. onerous transfer c. both a and d d. by operation of law
13. For estate tax purposes, the time of payment is
a. When you have the means c. when you inherit the property
b. When you file d. when required
14. Extension for payments when estate is settled through the courts not to exceed
a. 5 years b. 4 years c. 3 years d. 2 years
15. Statement 1: Where there are two or more executors or administrators, all of them are severally liable
for payment of the tax.
Statement 2: The executor or administrator of an estate has the primary obligation to pay estate tax.
a. True;true b. true;false c. false;true d. false;false
16. If filing the estate tax return, a CPA Certificate is required when the gross estate:
a. Exceeds P2,000,000 b. reaches P200,000 c. exceeds P200,000 d. reaches P2M
17. Properties owned before marriage and brought into marriage are generally classified as:
I. Exclusive property under conjugal partnership of gains
II. Common properties under absolute community of properties.
a. Only I is correct b. only II is correct c. both are correct d. both are incorrect
18. Crisostomo died on July 31, 2014. His estate tax return should be filed within:
a. 6 months from filing of the notice of death c. 60 days from the time he died
b. 6 months from the time he died d. 60 days from the appointment of the administrator
19. Under absolute community of property, which of the following is a community property?
a. Property inherited by the surviving spouse during the marriage
b. Property bought during the marriage using the salary of the decedent earned before marriage
c. Personal belongings (e.g. clothes) bought during marriage for the exclusive use of the decedent
 d. Jewelry inherited by the decedent during the marriage.
20. If transfer in contemplation of death, revocable transfer or property passing under general power of
appointment is made created, exercised or relinquished for consideration in money or moneys worth,
but there is no bona fide sale for an adequate and full consideration in money or moneys worth, the
gross estate will include:
a. Fair market value of such property at the time of transfer
b. Historical cost of such property at the time acquired.
c. Excess of the FMV of the property at the time of death over the value of the consideration recreive
d. FMV or assessed value of such property, at the time of death whichever is higher.
21. The following selected data were taken from the Estate of Ed Santos:
Claims against an insolvent person (fully collectible) P500,000
Claims against a person who absconded (fully uncollectible) P200,000
Claims against an insolvent person (20% collectible) P100,000
How much should be deducted from the gross estate?
a. P80,000 b. P100,000 c. P500,000 d. P580,000
22. The ranch of the decedent was mortgaged to accommodate the request of his brother for a loan. The
value of the loan to the brother was not included as receivable in the gross estate of the decedent. What
would be the treatment of the unpaid mortgage on the ranch?
a. Deductible from the gross estate c. Deductible from the gross income of the estate
b. not deductible from the gross estate d. deductible either gross estate or the gross income
23. For proceeds of life insurance not to constitute part of the gross estate
a. Must have been taken out by the decedent upon his life
b. Must have designated the estate of the decedent as irrevocable beneficiary
c. Must have designated a third person as, the decedents executor or administrator as the irrevocable
beneficiary
d. Must have designated a third person other than the estate, the decedents executor or administrator
as the irrevocable beneficiary
24. Estate tax returns are filed
a. In all cases of transfer subject to tax c. the gross value exceeds P200,000
b. Where the said estate consists of registrable property d. when the gross value exceeds P20,000
25. The following information are available relating to the computation of estate tax of a resident decedent
who died in May 8, 2016:
Australia- Net asset P100,000 and estate tax paid P3,500; UAE- Net asset P200,000 and estate tax paid
P5,000; Philippines- Net estate of P200,000
Compute for the estate tax still due after foreign tax credit
a. P6,000 b. P6,500 c. P7,000 d. P8,000
26. Under conjugal partnership of gains, vanishing is a deduction from
a. Exclusive property b. community property c. both a and c d. neither a and c
27. Which of the following deductions where all decedents can avail?
a. Share of surviving spouse b. Vanishing deduction c. Losses d. Medical Expense
28. All of the following are exclusions from gross estate under special laws, except
a. Amount received as war damages c. amount received from US Veteran Administration
b. Benefits received from GSIS d. amount received from mortis causa transfer
29. Mr. Estrado, an unmarried resident of the Philippines, died on January 12, 2015 leaving real properties
in Manila with fair market value of P1,560,000. Deductions claimed by the administrator of the
decedent estate are as follows:
Medical expense during the decedents sickness paid
out of the decedents available at date of death P45,000
Expense during the wake paid out of the decedents cash P85,000
Coffin donated by friends of decedent P40,000
Claims against insolvent person P100,000
How much funeral expense is allowed as deduction from gross estate?
a. P200,000 b. P90,000 c. P83,000 P78,000
30. The following are acts requiring a certification from the Commissioner, except one
a. Delivery of distributive shares to the heirs
 b. Transfer of inherited share, rights or bonds.
c. Withdrawal not exceeding P20,000
d. Registration of registry of deeds of transfer of inherited real property
31. Mr. and Mrs. Genaro Robles got married on August 3, 1988. They failed to have a pre-nuptial
agreement. As such, they were under the absolute community of property. Mr. Robles died. The
following properties with their fair market values were left behind:
Properties inherited by the decedent before the marriage P3,500,000
Properties received as donation by the surviving spouse 3,000,000
Properties inherited by the decedent during the marriage 500,000
Income from the properties inherited by the decedent before the marriage 100,000
Income from properties inherited by the decedent during the marriage 200,000
Properties acquired before the marriage by the decedent who had legitimate
descendants by a former marriage 50,000
Total Community Properties?
a. P3,600,000 c. P6,600,000
b. P6,500,000 d. none of the choices
32. Total Exclusive properties?
a. P1,200,000 c. P700,000
b. P1,000,000 d. None of the choices
33. Assuming they were under the regime of conjugal of partnership of gains, how much is the conjugal
properties?
a. P3,800,000 c. P300,000
b. P800,000 d. None of the choices
34. Refer to assumption number 8, total exclusive properties?
a. P4,050,000 c. P4,000,000
b. P4,350,000 d. P3,850,000
35. The primary liable to pay the estate tax is the-
a. Heir c. beneficiary
b. Executor d. both A and C