SURBAN, QUENDRICK KEITH E.

BSA-4A HW#3 February 03, 2018

CHAPTER 6

Problem 1
Properties:
>Parcel of Land in California, USA 2,500,000
>House and Lot in Quezon City (Family home) 2,250,000
>Shares of stock in a foreign
Corporation with office
in California, USA 1,125,000
>Car in California, USA 312,500
>Proceeds of Life Insurance, his
son Junior as the irrevocable
beneficiary 250,000
>Bank Deposit 125,000
>Claims Against an Insolvent Person 62,500

Gross Estate 6,625,000

Less:Deductions
Claims Against the Estate 90,625
Claims Against Insolvent Person 62,500
Family Home 2,250,000
Standard Deductions 4,221,875 (6,625,000.00)

NET TAXABLE ESTATE 0

ESTATE TAX DUE ( 0*6%) 0/EXEMPTED

Problem 2
Properties
>Fishpond in General Santos City 2,500,000
>Lot in Las Piñas City 625,000
>House and lot in San Juan,
Metro Manila (family home) 593,750
>Honda Car 375,000
>Farm in Nueva Ecija donated
mortis causa to sister 262,500
>Time Deposit 150,000

GROSS ESTATE 4,506,250

Less: Deductions
>Mortgage on fishpond (137,500-112,500) 25,000
>Unpaid Real Estate Tax for the
4th quarter of 2015 20,000
Family Home 593,750
Standard Deduction 5,000,000
TOTAL DEDUCTIONS 5,638,750 (5,638,750)

NET TAXABLE ESTATE 0

ESTATE TAX DUE ( 0*6%) 0/EXEMPTED

Problem 3
Properties
>Farm,Camarines Sur 4,375,000
>Bank Deposit 2,125,000
>House and lot in Guadalupe,
Makati City (family home) 1,875,000
>Investment in domestic partnership 1,500,000

GROSS ESTATE 9,875,000

Less: Deductions
Family Home 1,875,000
Standard Deduction 5,000,000 (6,875,000)

NET TAXABLE ESTATE 3,000,000

180,000
ESTATE TAX DUE (3,000,000*6%)

Problem 4

RESIDENT NON-RESIDENT W/O NON-RESIDENT W/

RECIPROCITY RECIPROCITY

Properties
>Cash in Bank, Makati 1,200,000 1,200,000
>Investment in a Domestic Partnership 1,000,000 1,000,000
>Car 700,000 700,000 700,000

>Foreign Shares, Japan-based company with 40%

business in the Philippines 700,000
>Domestic Shares 500,000 500,000
>Accounts Receivable from a debtor residing in
Japan. Debtor is fully insolvent 100,000

GROSS ESTATE 4,200,000 3,400,000 700,000

Less: Deductions
Expenses, Losses, Indebtedness, etc.
(1) Resident 460,000
(2) Non-resident w/o reciprocity 0
(3) Non-resident w/reciprocity 0
Legacy in favor of Philippine National Red Cross 50,000 50,000 50,000
Legacy in City of Makati 100,000 100,000 100,000
Standard Deduction 5,000,000 500,000 500,000

(1,410,000)
NET TAXABLE ESTATE 2,750,000 50,000
or 0

ESTATE TAX DUE 0/EXEMPTED 165,000 3,000

Solution (0*6%) (2,750,000*6%) (50,000*6%)

Expenses,Losses, Indebtedness, etc Computations

(1) Resident
Loss by robbery 3 months after death 200,000
Unpaid Income Tax for 2014 160,000
Claims against insolvent person 100,000
TOTAL 460,000

(2) Non-resident w/o reciprocity

Gross Estate X World expenses, losses, etc.

World Estate

3,400,000 X 0 = 0
4,200,000

(3) Non-resident w/ reciprocity

Gross Estate X World expenses, losses, etc.

World Estate

700,000 X 0 = 0
4,200,000
CHAPTER 7

Problem 1

Conjugal Properties Exclusive Conjugal Total

Apartment, 3 units 1,000,000
Bank Deposit 700,000
Domestic Shares 500,000
Cars 400,000 2,600,000
Exclusive Properties
Family Home 1,250,000
Vacant Lot 300,000 1,550,000

Gross Estate 1,550,000 2,600,000 4,150,000

Less:Ordinary Deduction
Conjugal deductions
Unpaid Mortgage on 3-unit apt. 300,000
Note Payable, notarized,
maturing on Nov. 30 of the
current year 60,000 360,000

Net Conjugal Estate/Net Estate After Deduction 2,240,000 3,790,000

Less:Special Deductions
Standard Deduction 1,420,000
Family Home 1,250,000
Net Share of Surviving spouse
(2,240,000/2) 1,120,000

NET TAXABLE ESTATE 0

ESTATE TAX DUE ( 0*6%) 0/EXEMPTED

Problem 2

Conjugal Properties Exclusive Conjugal Total

Tobacco Plantation 2,000,000
Family Home 1,350,000
Bank Deposit at PDCP 650,000
Personal Property 300,000
Notes Receivable 200,000 4,500,000
Exclusive Properties
Family Vacation House,Tagaytay 800,000
Family lot 500,000 1,300,000

Gross Estate 1,300,000 4,500,000 5,800,000

Less: Conjugal Deductions

Unpaid Mortgage on Tobacco P. 200,000 200,000

Net Conjugal Estate/Net Estate After Deduction 4,300,000 5,600,000

Less:Special Deductions
Family Home
F.H. (1,350,000/2) 675,000
Lot 500,000 1,175,000
Standard Deduction 2,275,000
Net Share of surviving spouse
(4,100,000/2) 2,150,000

NET TAXABLE ESTATE 0

ESTATE TAX DUE ( 0*6%) 0/EXEMPTED

CHAPTER 7

Problem 3
Requirement 1
Conjugal Properties Exclusive Conjugal Total
Personal Property 1,300,000
Apartment and Lot 1,000,000 2,300,000
Exclusive Properties
Land 100,000
Jeep 20,000
San Miguel Shares 300,000 420,000

Gross Estate 420,000 2,300,000 2,720,000

Less: Conjugal Deductions

Mortgage on Apartment and Lot 70,000 70,000

Net Conjugal Estate/Net Estate After Deduction 2,230,000 2,650,000

Less: Exclusive Deductions
Vanishing Deduction 30,941
Loss of Jeep 20,000 50,941
Less:Special Deductions
Standard Deduction 1,484,059
Net Share of surviving spouse
(2,230,000/2) 1,115,000
NET TAXABLE ESTATE (0)

ESTATE TAX DUE ( 0*6%) 0/EXEMPTED

Vanishing Deduction Computation

Value Taken PPT:
Land 50,000
Jeep 20,000 70,000
Less: Mortgage paid 30,000
Initial basis 40,000
Less:Deduction
40,000 *90000 = 1,323.53
2,720,000
Final basis 38,676
Multiply: Rate 80%
Vanishing deduction 30,941.18
Requirement 2
Conjugal Properties Exclusive Conjugal Total
Personal Property 1,300,000
Apartment and Lot 1,000,000 2,300,000
Exclusive Properties
Land 100,000
Jeep 20,000
San Miguel Shares 300,000 420,000

Gross Estate 420,000 2,300,000 2,720,000

Less: Conjugal Deductions

Mortgage on Apartment and Lot 70,000 70,000

Net Conjugal Estate/Net Estate After Deduction 2,230,000 2,650,000

Less: Exclusive Deductions
Vanishing Deduction 38,676
Loss of Jeep 20,000 58,676
Less:Special Deductions
Standard Deduction 1,476,324
Net Share of surviving spouse
(2,230,000/2) 1,115,000
NET TAXABLE ESTATE (0)

ESTATE TAX DUE ( 0*6%) 0/EXEMPTED

Vanishing Deduction Computation

Value Taken PPT:
Land 50,000
Jeep 20,000 70,000
Less: Mortgage paid 20,000
Initial basis 50,000
Less:Deduction
50,000 *90000 = 1,654.41
2,720,000
Final basis 48,346
Multiply: Rate 80%
Vanishing deduction 38,676.47
Problem 4

Conjugal Properties Exclusive Conjugal Total

House and Lot in Proj. 3 Quezon City 1,500,000
Apartment in Pasay City 3,000,000
Personal Property 400,000 4,900,000
Exclusive Properties
Fishpond in Batangas 500,000 500,000

Gross Estate 500,000 4,900,000 5,400,000

Less: Conjugal Deductions

Unpaid Mortgage on Apartment 500,000
Claims against the estate 80,000
Fire Loss on apartment on Nov.6,2015 40,000 620,000

Net Conjugal Estate/Net Estate After Deduction 4,280,000

### 4,780,000
Less: Exclusive Deductions
Vanishing Deduction 70,519
Unpaid Mortgage 20,000 90,519
Less: Special Dedcutions
Family Home (1,500,000/2) 750,000
Standard Deduction 1,799,481
Net Share of surving spouse
(4,280,000/2) 2,140,000 4,689,481

NET TAXABLE ESTATE 0

ESTATE TAX DUE ( 0*6%) 0/EXEMPTED

Vanishing Deduction Computation
Value Taken PPT:
Fishpond 140,000
Less: Mortgage paid 40,000
Initial basis 100,000
Less:Deduction
100,000 *640,000 = 11,851.85
5,400,000
Final basis 88,148
Multiply: Rate 80%
Vanishing deduction 70,518.52
Problem 5
Exclusive Conjugal Total
Conjugal Properties
House and lot 1,500,000
Fishpond, Dagupan 1,200,000
Domestic Shares and Stock 300,000
Investment in a Business Partnership 250,000
Time Deposit 1,600,000 4,850,000

Gross Estate 4,850,000 4,850,000

Less:Conjugal Deductions
Mortgage on Fishpond 350,000 350,000

Net Conjugal Estate/Net Estate After Deduction 4,500,000 4,500,000

Less:Special Deductions
Family Home (1,500,000/2) 750,000
Standard deductions 1,500,000
Net share of surviving spouse 2,250,000 4,500,000

NET TAXABLE ESTATE 0

ESTATE TAX DUE ( 0*6%) 0/EXEMPTED

Problem 6
Exclusive Conjugal Total
Conjugal Properties
Azucarera,Tarlac 1,800,000
House and lot,San Juan, Metro Manila 1,350,000
Investment in a domestic partnership 400,000
Personal property 160,000
Cash in Bank 200,000 3,910,000
Exclusive Properties
2-door apartment, Quezon City 1,135,000 1,135,000

Gross Estate 1,135,000 3,910,000 5,045,000

Less: Conjugal Deductions
Unpaid mortgage on Azucarera 140,000
Income Tax 2014 24,000 164,000

Net Conjugal Estate/Net Estate After Deduction 3,746,000 4,881,000

Less: Exclusive Deductions
Unpaid Mortgage on Apartment 100,000 100,000
Less: Special Deductions
Family Home 675,000
Standard Dedcution 2,233,000
Net share of surviving spouse
(3,746,000/2) 1,873,000 4,781,000

NET TAXABLE ESTATE 0

ESTATE TAX DUE ( 0*6%) 0/EXEMPTED

Problem 7
Exclusive Conjugal Total
Conjugal Properties
Real Properties 4,500,000 4,500,000
Exclusive Properties
Family Home 1,750,000
Other Exclusive properties 2,800,000 4,550,000

Gross Estate 4,550,000 4,500,000 9,050,000

Less: Deductions
Other Deductions 1,600,000 1,600,000

Net Conjugal Estate/Net Estate After Deduction 2,900,000 7,450,000

Less: Special Deduction
Family Home 1,750,000
Standard Deductions 4,250,000
Net Share of surviving spouse
(2,900,000/2) 1,450,000 7,450,000

NET TAXABLE ESTATE 0

Problem 8
Exclusive Conjugal Total
Conjugal Properties
Real Properties 3,800,000
Family Home 2,500,000 6,300,000
Exclusive Properties
Other Exclusive properties 2,200,000 2,200,000

Gross Estate 2,200,000 6,300,000 8,500,000

Less: Deductions
Other Deductions 1,700,000 1,700,000

Net Conjugal Estate/Net Estate After Deduction 4,600,000 6,800,000

Less: Special Deduction
Family Home (2,500,000/2) 1,250,000
Standard Deductions 3,250,000
Net Share of surviving spouse
(4,600,000/2) 2,300,000 6,800,000

NET TAXABLE ESTATE 0

Problem 9
Exclusive Conjugal Total
Conjugal Properties
Real Properties 7,000,000
Family Home 1,700,000 8,700,000
Exclusive Properties
Other Exclusive properties 2,500,000 2,500,000

Gross Estate 2,500,000 8,700,000 11,200,000

Less: Deductions
Other Deductions 2,400,000 2,400,000

Net Conjugal Estate/Net Estate After Deduction 6,300,000 8,800,000

Less: Special Deduction
Family Home (1,700,000/2) 850,000
Standard Deductions 4,800,000
Net Share of surviving spouse
(6,300,000/2) 3,150,000 8,800,000

NET TAXABLE ESTATE 0

Problem 10
Exclusive Conjugal Total
Conjugal Properties
Real Properties 3,300,000
Family Home 1,100,000 4,400,000
Exclusive Properties
Other real properties 2,200,000
Family Lot 450,000 2,650,000

Gross Estate 2,650,000 4,400,000 7,050,000

Less: Deductions
Other Deductions 1,500,000 1,500,000

Net Conjugal Estate/Net Estate After Deduction 2,900,000 5,550,000

Less: Special Deduction
Family Home
Family Home (1,100,000/2) 550,000
Family Lot 450,000
Standard Deductions 3,100,000
Net Share of surviving spouse
(2,900,000/2) 1,450,000 5,550,000

NET TAXABLE ESTATE 0