LEARNING ACTIVITY – UNIT 4

DEADLINE: DECEMBER 10, 2021

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WRITE NUMBERS ONLY!!!!! NO SPACES, NO COMMAS, NO PESO SIGNS!!!! (Ex. 100000)
WRITE NUMBERS ONLY!!!!! NO SPACES, NO COMMAS, NO PESO SIGNS!!!! (Ex. 100000)

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PROBLEMS
Problem 1. A decedent died leaving the following properties. Check the appropriate box if
included in the gross estate.

Resident NRA-No NRA-With

deceden Reciprocit Reciprocit
t y y

House and lot, USA,

Condominium unit, Philippines

Furniture and appliances, Philippines

Car, USA

Bonds, Philippines

Common shares of stock not traded in the local stock

exchange, Philippine Corporation

Preferred shares of stock, foreign corporation, 85% of the

business in the Philippines

Proceeds of life insurance, Philippines

Problem 2. Determine the amount to be included in the Gross Estate of the transferor-
decedent from the following independent cases:
* If it is a valid sale, just put “ 0 “ in your google form.
1. FMV at the time of Transfer P 5,000,000
FMV at the time of Death 6,000,000
Consideration received 5,000,000
Answer: _________________
2. FMV at the time of Transfer P 5,000,000
FMV at the time of Death 6,000,000
Consideration received 6,000,000
Answer: _________________
3. FMV at the time of Transfer P 5,000,000
FMV at the time of Death 6,000,000
Consideration received 7,000,000
Answer: _________________
4. FMV at the time of Transfer P 5,000,000
FMV at the time of Death 6,000,000
Consideration received 2,000,000
Answer: _________________
5. FMV at the time of Transfer P 5,000,000
FMV at the time of Death 6,000,000
Consideration received nil
Answer: _________________

Problem 3. Determine the value to be included in the gross estate

a. Real property, zonal value, time of death, P1,500,000; value per

tax declaration, time of death, P1,200,000

b. Real property, zonal value, 6 months before death, P1,500,000;

assessed value, time of death, P1,200,000

c. Personal property, recently purchased, FMV, time of death,

P700,000; purchase price, P800,000

d. Personal property, recently purchased, purchase price, P800,000

e. Personal property, not recently purchased, pawn value, P80,000

f. 10,000 shares of stock, traded in the local stock exchange, par

value, P20/share; mean between highest and lowest quotation,
P15/share

g. 5,000 common shares, not traded in the local stock exchange,

FMV, time of death P2/share; par value, P5/share
h. 5,000 common shares, not traded in the local stock exchange, par
value, P5/share; book value, P4/share

i. 10,000 preferred shares, not traded in the local stock exchange par
value, P10/share; book value, P15/share

Problem 4. Determine whether or not the following proceeds of life insurance shall be included
in the gross estate. (Y/N)

1) Proceeds from life insurance, third person is irrevocably designated as beneficiary

2) Proceeds from life insurance, third person is revocably designated as beneficiary

3) Proceeds of life insurance, the beneficiary’s designation is not clear

4) Proceeds of life insurance, administrator of the estate is irrevocably designated as

beneficiary

5) Proceeds of life insurance, executor of the estate is revocably designated as

beneficiary

6) Benefits received from SSS, third person is irrevocably designated as beneficiary

7) Benefits from GSIS, third person is revocably designated as beneficiary

Problem 5. Determine the deductible family home in 2018 from the following independent
cases:

CAS PARTICULARS FAMILY AMOUNT

E HOME DEDUCTIBL
E

A Decedent is single P 10 000 000

B Decedent is a head of a family 5 000 000

C Decedent is married. The family home is the exclusive 8 000 000

property of the surviving spouse

D Decedent is married. The family home is the exclusive 10 000 0000

property of the decedent

E Decedent is married. The family home is classified as 12 000 000

conjugal property

F Decedent is married. Fifty percent (50%) of the family 10 000 000

home is classified as conjugal property, the remainder
is the exclusive property of the decedent
Problem 6. Classify the following as exclusive or conjugal property under Absolute Community
of Property (ACP) and Conjugal Partnership of Gains (CPG). Put a check mark "✓" in the space
provided if the property is classified as common property and leave it blank if the property is
classified as exclusive.

ACP CPG

1. Properties owned by the spouses before the marriage

2. Rental income on a property acquired before marriage.

3. Property acquired during marriage.

4. Income on property described in #3

5. Property acquired by gift before marriage.

6. Income on property described in #5.

7. Property inherited during marriage

8. Income on property described in #7

9. Property acquired during marriage from common fund

10. Income on property described in #9

11. Car purchased during marriage using funds derived from practice
of profession

12. Property owned before marriage for personal and exclusive use of
the decedent.

13. Jewelry items during marriage for personal and exclusive use by
the decedent

14. Real property acquired during marriage with decedent's own

income

15. Car inherited during marriage

Problem 7. (UPLOAD YOUR SOLUTIONS in our Google Classroom)
Pedro Cruz died intestate on September 30, 2020. He was survived by his wife and his two
children. He left the following properties:

 Land (1,000 sq. m.) inherited from his father 15 months before his death. Fair market
value per tax declaration at the time of Pedro's death was P20,000,000 while the zonal
value was P30,000 per sqm.;
 House and lot (Family Home) acquired during marriage, FMV, P50,000,000
 Other tangible personal properties (mode of acquisition unknown), FMV, P22,00,000.
The following were considered as deductions from the gross estate:

 Actual funeral expenses, P480,000

 Judicial expenses, P1,000,000
 Other claims against the conjugal properties; P5,000,000
 Unpaid taxes; P1,200,000
 Claims against insolvent persons, P500,000
 Medical expenses, P1,200,000
The estate of the decedent's father paid the estate tax on the land at the fair market value of
P25,000,000. During the marriage, Pedro mortgaged the inherited land for P7,000,000 for the
benefit of the family. He paid P3,500,000 before he died.

Determine the following:

a) Vanishing deduction –
b) Net Taxable estate –
c) Estate tax due –
TRUE OR FALSE
1. Estate tax is a tax on the right to transfer property at death and on are made by law the
equivalent of testamentary disposition and is measured by the value of the property.

2. The taxpayer in estate taxation is the estate of the decedent juridical person.

3. Estate tax accrues as of the date of the actual possession or enjoyment of the estate by
the beneficiary.

4. Executor is the person appointed by a court to carry out the directions and request of a
decedent in his will and to dispose of his property according to his testamentary
provisions after his death.

5. A holographic will is a will entirely written by a testator with his own hand and may be
witnessed or attested.

6. The will of an alien residing abroad produces effect in the Philippines if made in
conformity with the formalities prescribed by law of the place in which he resides.

7. Relatives by affinity are strangers for estate tax purposes.

8. A codicil is a supplement or addition to a will, made after the execution of a will and
annexed to be taken as a part thereof, by which any disposition made in the original will
is explained, added to or altered.

9. Under the law on legitime, if the only survivor is the widow or widower, she or he shall be
entitled to one half of the hereditary estate of the deceased spouse, and the testator may
freely dispose of the other half.

10. Representation is a right created by fiction of law by virtue of which the representative is
raised to the place and degree of the person represented and acquires the rights which
the latter would have if he were living or if he could have inherited.

11. Delivery and acceptance are essential elements of estate taxation.

12. Regardless of situs, the tax code excludes intangible personal property of a non-resident
alien decedent in determining his taxable estate.

13. Section 85 of the Tax Code provides that the value of the gross estate of a nonresident
alien should be determined by including the value at the time of his death, of all property,
real or personal, tangible or intangible, wherever situated.

14. Ron devised in his will real property to his brother Bert who is entrusted with the
obligation to preserve and transmit the property to Jay, son of Bert, when Jay becomes
of age. The transmission from Bert to his son Jay is subject to estate tax.
15. When an estate, under administration, has income-producing property and its income
during the year is distributed to the heirs, the income so distributed is taxable to the heirs
as part of their gross income for the year.

16. Casualty loss is deductible from gross estate if such loss was incurred during the
settlement of the estate.

17. Casualty losses could be claimed as deduction from the gross income and from the
gross estate.

18. In computing for vanishing deduction, the value to be taken is the lesser amount of the
value of the property at the date of the previous transfer or the value of the property at
the date of death of the decedent.

19. Vanishing deduction is being allowed to lessen the impact of successive taxation of the
same property within a very short period.

20. The maximum amount of deductible family home from the gross estate upon the
effectivity of the TRAIN Law is P10,000,000.

21. Under the regime of absolute community of property, the husband and the wife place in
a common fund the proceeds, products, fruits and income from their separate property
and those acquired by either or both spouses through their effort or by chance

22. The gross estate of a married decedent under the system of conjugal partnership of
gains during the marriage is a mixture of his exclusive property and conjugal property.

23. The inclusion of claims against insolvent person in the gross estate of the decedent
spouse as either exclusive or communal property will depend on the nature of the claim-
whether it is for an exclusive or for a communal property

24. Funeral expenses are no longer deductible from the gross estate of a decedent
beginning January 1, 2018.

25. The share of the surviving spouse in the estate shall be deducted equal to ½ of the
gross conjugal property.
MCQ – Theory
1. The object of estate tax is the:
a. Right to transmit
b. Decedent
c. Properties of the decedent
d. Beneficiaries

2. Mortis causa transfer of property is effected:

a. When the property is received by the heir.
b. When the court awarded the ownership of property to a particular heir.
c. Upon the death of the decedent.
d. Upon payment of estate tax.

3. The tax imposed on the transfer of property without consideration between two or more
persons who are living at the time the transfer is
a. Estate Tax
b. Business Tax
c. Donor's tax
d. Personal tax

4. Statement 1: Inheritance refers to all the property, rights and obligations of a person
which are not extinguished by death and all which have accrued thereto since the
opening of succession.

Statement 2: Rights which are purely personal are not transmissible for they are
extinguished by death.
a. Statements 1 and 2 are false
b. Statement 1 is true but statement 2 is false
c. Statement 1 is false but statement 2 is true
d. Statements 1 and 2 are true

5. It is a mode of acquisition by virtue of which, the property, rights and obligations, to the
extent of the value of the inheritance, of a person are transmitted through his death to
another either by his will or by operation of law.
a. Succession
b. Purchase
c. Barter
d. Donation

6. Heir who inherits personal property by will is known as:

a. Devisee
b. Legatee
c. Compulsory Heir
d. Donee
7. A person appointed by the testator to carry out the provisions of the will is called:
a. Administrator
b. Executor
c. Enforcer
d. Beneficiary

8. Succession which results from the designation of an heir, made in a will executed in the
form prescribed by law is known as:
a. Legal or interstate succession
b. Testamentary succession
c. Mixed succession
d. Ordinary succession

9. Which of the following statements regarding degree of relationship is incorrect?

a. In the direct line, ascent is made to the common ancestor. Thus, the child is one
degree removed from the parent, two from the grandfather, and three from the
great-grandparent.
b. In the collateral line, ascent is made to the common ancestor and then descent is
made to the person with whom the computation is to be made. Thus, a person is
two degrees removed from his brother, three from his uncle, who is the brother of
his father, four from his first cousin, and so forth.
c. Both "a" and "b"
d. Neither "a" nor "b"

10. How many degrees (of generation) apart are third cousins?
a. two
b. four
c. six
d. eight

11. In default of testamentary heirs, the law determines who are to succeed to the
inheritance of the ceased. Which one of the following ranks first in the order of
succession?
a. Legitimate children
b. Surviving spouse
c. Legitimate parents
d. Illegitimate parents

12. Certain parts of the estate of a deceased Filipino citizen cannot be freely disposed of
because Philippine law reserves them for the "compulsory heirs". This portion of the
decedent's estate is known as
a. Legitime
b. Free Portion
c. Legacy
d. Bequest
13. No Will shall be revoked, except
a. By implication of law
b. By some will, codicil, or other writing executed as provided in the case of wills
c. By burning, tearing, canceling, or obliterating the will with the intention of
revoking it, by the testator himself, or some other person in his presence, and by
his express direction.
d. All of the above

14. Which of the following is not a valid will?

a. That which increases the legitime of a compulsory heir.
b. That which transfers the portion of legitime to other successors other than
compulsory heir(s).
c. That which reduces the free portion of the estate tax.
d. That which transfers a part of free portion to a compulsory heir.

15. It deprives an heir to inherit properties by the decedent through issuance of a will.
a. Disinheritance
b. Distributable share
c. Legitime
d. Disqualification

16. Estate tax is imposed upon the:

a. Decedent
b. Property or rights transferred
c. Right to transfer property upon death
d. Privilege to receive inheritance

17. Which of the following is not a characteristic of donation mortis causa?

a. The transfer to the donee is irrevocable while donor is alive
b. There is no conveyance of title or ownership to the donee before the death of the
donor.
c. The transferor retains the full or naked ownership and control of the property
while alive.
d. The transfer should be void if the donor should survive the donee.

18. Mr. Wais thought that due to old age, death may be imminent. Knowing that the value of
estate tax is high, he disposed his properties to his rightful heirs prior to his death
(transfer in contemplation of death). To prevent undue avoidance of tax, inter vivos
disposition in contemplation of death is subject to:
a. Donor's tax
b. Estate tax
c. Income tax
d. Excise tax
19. Which of the following is subject to the rule of reciprocity?
a. Car in the Philippines owned by a non-resident alien decedent.
b. Investment in stock in a US Corporation owned by a non-resident alien decedent.
c. Investment in bonds in a U.S.-Corporation that has acquired business situs in the
Philippines, and is owned by a resident alien.
d. Shares owned by a non-resident alien in a partnership established in the
Philippines.

20. W Which is not a test of situs?

a. Residence of the debtor in case of accounts receivable.
b. Place of storage in case of certificates of stocks.
c. Location of depository bank in case of bank deposit.
d. Place of exercise in case of copyright

21. Which of the following value is not used when valuing gross estate?
a. Fair market value at the time of death;
b. Fair market value at the time the estate return is filed;
c. Zonal value when higher than the assessed value in case of real property;
d. Book value in case of shares not traded in the stock

22. The following are deemed transfers in contemplation of death, except

a. While still alive, the decedent donated property where the donation will take
effect at the time of his death.
b. The decedent transferred a property in the regular course of the business
operation.
c. The decedent donated a property with the condition that he/she will enjoy the
fruits of such while he/she is still alive.
d. The decedent transferred a property to take effect after his/her death

23. An agreement created by will or an agreement under which title to property is passed to
another for conservation or investment with the income therefrom and ultimately the
corpus to be distributed in accordance with the directives of the creator as expressed in
the governing instrument
a. Estate
b. Trust
c. Fiduciary
d. Beneficiary

24. Which of the following transfer is not included in the gross estate?
a. Transfer with reservation of certain rights
b. Transfer for insufficient consideration
c. Transfer for an adequate full consideration in money or money's worth
d. Transfer in contemplation of death
25. Amounts receivable by the estate of the deceased, his executor or administrator as an
insurance under policy taken by the decedent upon his own life is:

a. Excluded from the gross estate.

b. Part of the gross estate whether the beneficiary is revocable or irrevocable
c. Part of the gross estate if the beneficiary is revocable.
d. Part of the gross estate if the beneficiary is irrevocable

26. Proceeds of life insurance where the beneficiary of the decedent is not his estate,
executor or administrator is
a. Part of gross income if the beneficiary is revocable
b. Part of gross income regardless of whether the beneficiary is revocable or
irrevocable
c. Not part of gross estate if the beneficiary is irrevocable
d. Part of gross estate regardless of whether the beneficiary is revocable or
irrevocable

27. Which of the following is not true regarding a claim against insolvent persons?
a. The decedent's claim is deductible in full because the debtor's liabilities exceed
his remaining assets.
b. The decedent's claim must be included in full in the gross estate.
c. The decedent's claim which cannot be collected is deductible according to the
ratio of the debtor's assets to his liabilities.
d. Claim against insolvent person is a claim against person whose assets are not
sufficient to pay his liabilities.

28. Which of the following is included in the income of the estate of a decedent?
a. Income received by the estate of a deceased person during the period of
administration or settlement of the estate.
b. Excess of selling price over the appraised value placed upon the property at the
time of death, where the property was sold after the settlement of the estate.
c. Appreciation in the value of property passed to the executor or administrator
upon death of decedent.
d. Delivery of property in kind to legatee or devisee. of the following transfer is not
included in the gross estate?

29. Under which of the following situations an estate tax return is required to be filed under
the TRAIN Law?
a. Transfers which are subject to estate tax.
b. The estate consists of registered or registrable properties for which a clearance
from the BIR is required as a condition precedent for the transfer of ownership.
c. Both "a" and "b"
d. Neither "a" nor "b"

30. Who shall file the estate tax return?

a. Executor, or administrator, or any of the legal heirs
b. Creditors of the decedent
 c. Personal secretary of the decedent
d. Debtors of the decedent
31.
 Which of the following statements is correct?
a. A person is insolvent when his properties are not sufficient to pay his obligation.
b. The claims of the creditors will be satisfied out of the available properties of the
insolvent debtor.
c. For estate tax purposes, there are two kinds of creditors, preferred and ordinary
creditors.
d. All of the above

32. It pertains to the amount of all the bequests, legacies, devises or transfers to or for the
use of the Government of the Republic of the Philippines, or any political subdivision
thereof, for exclusively public purposes.
a. transfer for public use
b. Vanishing deduction
c. Property previously taxed
d. Inheritance

33. Ded Nha, a citizen of the Philippines and a resident of Bacolod City, died testate on May
10, 2021. Among his gross estate are properties inherited from his deceased father who
died on April 4, 2018. What percentage of deduction will be used in computing the
amount of vanishing deduction?
a. 80% of the value taken as basis for vanishing deduction;
b. 100% of the value taken as basis for vanishing deduction;
c. 60% of the value taken as the basis for vanishing deduction
d. 40% of the value taken as the basis for vanishing deduction

34. Upon effectivity of the TRAIN Law, which is not true about standard deduction?
a. It need not be substantiated
b. It does not apply to nonresident alien decedent
c. It must be reflected in the estate tax return
d. None of the above shall file the estate tax return?

35. Only one statement is correct? A deduction for family home

a. Shall be allowed if the family home is in the Philippines.
b. Shall be at a maximum of P10,000,000, based on cost.
c. May be allowed for two family homes (one in the city and another in the
province), both in the Philippines and with certifications of the barangay captains.
d. Shall be deducted at lesser than P10,000,000 if, with vanishing deduction and
unpaid mortgage or indebtedness, the value of the family home is already
reduced to zero. shall file the estate tax return?

36. Which is not an exclusive property of a spouse?

a. That which is brought to the marriage as his or her own.
b. That which each acquired during the marriage by gratuitous title.
c. That which is acquired by right of redemption.
d. That which is purchased with the spouses' common fund
37. Which of the following distinguishes conjugal property from community property?
a. Properties inherited during marriage.
b. Those acquired through occupation during marriage.
c. Fruits of exclusive property.
d. Income earned by each spouse during marriage.

38. The gross estate of a decedent who was married at the time of death will be composed
of:
a. His capital property, the wife's paraphernal property and the common property
b. His capital property and the common property
c. Common property
d. His capital property

39. The following are required to be listed as part of the gross estate, but are exempted from
estate tax, except
a. Share of the surviving spouse
b. Transfer for public use
c. Exclusive property of the decedent
d. Amount received by heirs under RA 4917

40. All of the following items are allowed as deductions against exclusive portion of the
estate, except
a. Unpaid taxes
b. Claims against insolvent persons
c. Vanishing deduction
d. Family home
MCQ – Problems
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UPLOAD YOUR SOLUTIONS IN OUR GOOGLE CLASSROOM

1. Pedro died on April 13, 2021, leaving the following properties:

Common stocks of Sunchamp Corporation (2,000 shares) - listed in the Philippine Stock
Exchange (highest - P40; lowest - P39).
Common stocks of AgriNurture Corporation (1,500 shares) - not listed in the stock exchange.
Cost - P50 per share; book value - P45 per share.
Preferred stocks of Greenergy Inc. (3,000 shares) - not listed in the stock exchange. Cost - P70
per share; book value - P60 per share; par value - P50 per shar
Car (cost- P600,000; book value- P350,000; market value – P400,000)
Real properties (zonal value - P120,000; assessed value - P72,000)
The gross estate of Pedro is –
a. P817,500
b. P816,500
c. P824,000
d. P846,500
2. A Filipino decedent residing in Hawaii during his lifetime, left the following properties:

 House and lot, USA P 10,000,000

 Mansion, Philippines 50,000,000
 Cars, Philippines 2,000,000
 Shares of stock, Singapore 5,000,000
 Accounts receivable, USA 3,000,000
The gross estate of the decedent is
a. P70,000,000
b. P67,000,000
c. P65,000,000
d. P62,000,000
3. The gross estate of a decedent included the following:

Cost Fair Value

Land and building, Philippines P1,600,000 P2,000,000

House and lot, UK 1,800,000 1,500,000

Personal properties, UK 1,000,000 600,000

House and lot, Philippines 4,000,000 3,500,000

Shares of stocks, UK corp 200,000

Shares of stocks, domestic corp. (certificate kept in UK) 250,000

Shares of stocks, domestic corp. (certificate kept in Philippines) 100,000

Franchise exercised in the Phils. 200,000

Franchise exercised in UK 150,000

Receivables, debtor is from UK 50,000

Receivables, debtor is from Phils. 50,000

3. If the decedent was a nonresident alien and his country exempts a Filipino citizen from estate
tax, how much of his assets would be subject to reciprocity?
a. P1,000,000
b. P800,000
c. P600,000
d. P350,000
4. If the decedent was a nonresident alien and assuming there is no reciprocity, how much is
the gross estate?
a. P10,700,000
b. P6,600,000
c. P6,100,000
d. P5,850,000
A decedent left 1,000 XYZ Corporation common shares. The shares were not traded in the
stock exchange. The following data were made available:
Capital stock, XYZ Corporation P 10,000,000
Retained earnings 2,000,000
Outstanding shares 100,000
5. What was the value included the decedent's gross estate?
a. P100,000
b. P120,000
c. P150,000
d. PO
6. Assume that the shares were classified as preference shares, what was the value included
the decedent's gross estate?
a. P100,000
b. P120,000
c. P150,000
d. PO
7. Assume that the shares were traded in the stock exchange. Assume further that the average
value at the time of death was P100 per share, What was the value included the decedent's
gross estate?
a. P100,000
b. P110,000
c. P120,000
d. P150,000
8. Assume that the shares were traded in the stock exchange. However, the quoted price at the
time of death was not determinable. Nonetheless, the highest and lowest quotations of the
shares in the market were P140 and P80, respectively, what was the value included the
decedent's gross estate?
a. P100,000
b. P110,000
c. P120,000
d. P150,000
9. Decedent died in 2018 leaving a will which directed all real estate owned by him not to be
disposed or sold for a period of 2 years after his death, and ordered that the property be given
to Juan Dela Cruz after 2 years. In 2018, the estate left by the decedent had a fair market value
of P500,000. In 2020, the fair market value of the said estate increased by P4,500,000 and the
BIR Commissioner assessed thereon estate tax based on assessed value of P4,000,000 in
2018. What would be the correct amount of the gross estate?
a. P5,000,000
b. P4,000,000
 c. P4,500,000
d. P500,000
10. A revocable transfer was made for a consideration of P100,000. Fair market values of the
property at the time of transfers and at the time of death were P250,000 and P300,000,
respectively. In the gross estate, the value of the property was
a. P100,000
b. P250,000
c. P200,000
d. Exempt
11. Awa Nhen died on January 1, 2021 leaving among following charges and obligations:
Real property tax for the year 2020 P 100,000
Notarized interest-bearing promissory note 100,000
Accrued interest on the promissory note
at the time of death 20,000
Interest to accrue on the promissory note from the
date of death to the date of maturity 10,000
Income tax due for 2020 200,000
How much were the allowable ordinary deductions from the gross estate?
a. P420,000
b. P430,000
c. P510,000
d. P520,000
12. Claims against the estate of the decedent who died on February 2021:
Notes payable for money borrowed, not notarized P 500,000
Accounts payable for supplies used in business 200,000
Debts from gambling losses 120,000
How much is the deductible claims against the estate?
a. P200,000
b. P320,000
c. P470,000
d. P850,000
Among the properties included in the gross estate of the decedent at the time of death is a
three-story commercial building with a fair market value of P12,000,000. During the settlement
of the estate and before the last day of paying the estate tax, the said property is destroyed by
fire. The fair market value at the time of the incident was P13,000,000.
13. The amount that should be included as part of the gross estate is
a. PO
b. P12,000,000
c. P12,500,000
d. P13,000,000
14. The amount of deductible loss will be
a. PO
b. P12,000,000
c. P12,500,000
d. P13,000,000
15. Assume that the property was insured for P10,000,000 and the amount recovered from the
insurance company was P9,000,000. The amount of deductible loss will be
a. P1,000,000
b. P3,000,000
c. P9,000,000
d. P12,000,000
16. Assume that 70% of the property is destroyed by fire and the property is not insured. The
deductible loss will be
a. PO
b. P3,600,000
c. P8,400,000
d. P12,000,000
17. Yumao Na Rhin transferred a 3,000 square meter lot purposely to be converted as a zoo to
be administered by the city government of Tawi tawi. The lot was acquired by the decedent 10
years ago for P50,000. Its fair market value at the time of Yumao Na Rhin's death was
P5,000,000. The deduction from the gross estate relative to this transfer is
a. P50,000
b. P2,500,00
c. P5,000,000
d. PO
18. On September 4, 2021, Yumao N. Rin died leaving an apartment building which has a fair
value of P1,000,000 which he inherited from his mother. The property was valued at P9,000,000
at the time of inheritance dated July 28, 2018. The building has a previous mortgage of
P1,500,000 of which P500,000 was paid by Yumao N. Rin prior to his death. In computing for
the vanishing deduction, what percentage will be used and how much will be the vanishing
deduction?
 a. 40%; P3,060,000
b. 60%; P3,000,000
c. 40%; P3,230,000
d. 20% P3,050,000
19. A decedent has one year left to complete 30 years of continuous service with his employer
when he died. His only heir received P1,500,000 as benefit under RA 4917. What should be the
amount to be included in the gross estate?
a. P1,500,000
b. P500,000
c. P1,000,000
d. PO
20. Based on the preceding problem, what amount should be included as part of deductions
from gross estate?
a. P1,500,000
b. P500,000
c. P1,000,000
d. P0
Decedent is a citizen of the Philippines and a resident of Quezon City. died leaving the
following:
Rest house in Batangas inherited from his father during marriage P2,500,000
Car received as gift from his mother before his marriage 1,000,000
Commercial land received as gift from his mother before marriage 5,000,000
Income from the commercial land 500,000
Commercial building inherited by the surviving spouse during marriage 1,500,000
Income from exclusive property of his spouse, during marriage 200,000
Jewelry owned before the marriage 300,000
Personal exclusive property of the surviving spouse 100,000
Other properties at the time of her death 1,000,000
21. Under the regime of conjugal partnership of gains, how much is the decedent's gross
exclusive properties?
a. P8,800,000
b. P8,600,000
c. P8,700,000
d. P10,300,000
22. How much is the gross conjugal properties?
a. P7,700,000
b. P9,200,000
c. P1,500,000
d. P1,700,000
23. Under the regime of absolute community of property, how much is the decedent's gross
exclusive properties?
a. P2,800,000
b. P2,500,000
c. P3,800,000
d. P3,500,000
24. Using the same assumption in the preceding number, how much is the gross conjugal
properties?
a. P7,500,000
b. P6,800,000
c. P7,800,000
d. P6,800,000
The following data were taken from the records of a citizen decedent:
Land inherited from his mother 2 years before death,
during marriage (valued of P15,000,000 when inherited) P24,000,000
Other personal property owned before marriage 16,000,000
Other personal property acquired during marriage 5,000,000
Cost and expenses:
Claim against the estate 2,000,000
Medical expenses incurred within one year before death 7,000,000
Losses 1,000,000
25. The amount of exclusive property under absolute community of property should be:
a. P15,400,000
b. P30,800,000
c. P45,000,000
d. P24,000,000
26. The share of the surviving spouse under the absolute community of property should be:
a. P15,400,000
b. P30,800,000
c. P45,000,000
d. P9,000,000
27. The share of the surviving spouse under conjugal partnership of gains should be:
a. P1,000,000
b. P2,000,000
c. P9,000,000
d. P18,000,000
28. A Filipino taxpayer died in 2021 leaving the following: Net taxable estate, Philippines,
P3,000,000; Net Estate - Korea, P1,000,000; Estate tax paid in Korea, P80,000.
How much is the estate tax due after tax credit?
a. P60,000
b. P180,000
c. P200,000
d. P240,000
29. An American, residing in the Philippines, died in 2021 leaving the following estate before
deducting special deductions, if any:
Net taxable estate, Philippines P6,000,000
Net taxable estate, Qatar 3,000,000
Net taxable estate, Dubai 1,000,000
Estate tax paid, Qatar -
Estate tax paid, Dubai -
There is no estate tax law in Qatar and Dubai. The estate tax due after tax credit is
a. PO
b. P400,000
c. P600,000
d. P1,000,000
30. Decedent was a citizen of the Philippines who was single at the time of death. Compute the
vanishing deduction based on the following information that were made available:
Properties inherited two-and-a-half years before death:
Located outside the Philippines P3,000,000
Located in the Philippines
FMV, when inherited 6,500,000
FMV, time of death 7,000,000
Unpaid mortgage on the property when inherited 1,500,000
Unpaid mortgage on the property at the time of death 1,000,000
Property acquired through own labor 2,000,000
Losses, indebtedness, taxes, etc. (excluding the unpaid mortgage of P1,000,000) 800,000
Transfer for public use 970,000
Medical expenses 800,000
Answer: _____________