ESTATE TAX

A died leaving a house and lot to B on April 1, 2018 which was questioned by C and it is under litigation but,
subsequently, the parties executed an extra-judicial settlement. The last day for filing the estate tax return is *
April 30 2018
April 30 2019
October 1 208
March 31 2019

One of the following is a conjugal property of the spouses *

Pedro died on Nov 2 2018, leaving the following properties: I. Common Stocks from C Corp (2,000 shares) – listed in
PSE (highest 40; lowest 39); II. Common Stocks from A Corp (1,500 shares) – not listed in PSE. Cost 50 per share; BV
45; III. Preferred stocks of G Inc (3,000 shares) – not listed in PSE. IV. Cost P70 per share; BV P60 per share; par value
P50 per share; V. Car (cost 600,000; BV 350,000; FMV 400,000); VI. Real properties (zonal 120,000; assessed value
72,000). The gross estate of Pedro is *
816,500
817,500
824,000
846,500

Pedro died on March 1, 2018. The following data were available in connection with the property: Assessed value, 6
months before death, 2,500,000; FMV at the time of filing of estate tax return, Feb 28, 2019, 3,000,000; Zonal value,
March 1, 2018, 2,000,000. What would be the value of the piece of land in the gross estate *
2,000,000
2,500,000
3,000,000
5,000,000

Statement 1: Tax credit is allowed to all decedents who have properties within and outside the Philippines. |
Statement 2: An estate tax return showing a gross estate value of P2,000,000.00 shall be supported with a statement
duly certified by a CPA *
Only statement 1 is correct
Only statement 2 is correct
Both statements are correct
Both statements are incorrect
Statement 1: Tax credit is allowed to all decedents who have properties within and outside the Philippines. |
Statement 2: An estate tax return showing a gross estate value of P2,000,000.00 shall be supported with a statement
duly certified by a CPA *
Only statement 1 is correct
Only statement 2 is correct
Both statements are correct
Both statements are incorrect

On the belief that Pedro is about to die, he sold to his daughter a parcel of land valued at 3,000,000 for the same
amount. One year later, Pedro died of a car accident. At that time, the property had already valued of 3,500,000.
What is the amount included in the gross estate? *
500,000
3,000,000
3,500,000
0

When an estate is settled extra-judicially, the estate tax return may be filed and the estate tax paid *
By any of the heirs, with a right of reimbursement from the heirs
Only by the heir with authority from other heirs
By each of the heirs, the payment being for his distributive share in the estate tax
The eldest of the heirs and closest in relationship to the decedent

A died leaving a house and lot to B on April 1, 2018 which was questioned by C and it is under litigation but,
subsequently, the parties executed an extra-judicial settlement. The last day for the payment of estate tax may be
extended until *
October 1 2019
March 31 2021
October 1 2021
March 31 2022

Statement 1: The last will and testament should be notarized to be valid. | Statement 2: In all cases, the surviving
spouse shall receive one-half of the net distributable estate. *
Only statement 1 is correct
Only statement 2 is correct
Both statements are correct
Both statements are incorrect

Exclusive property of the husband is called? *

Exclusive property of the wife is called? *

The gross estate of a decedent who was married at the time of death will be composed of *
His capital property, the wife’s paraphernal property and the common property
His capital property, and the common property
Common property
His capital property

Ana, an NRA, died in Syria leaving the following properties: I. House and Lot in Syria, 1,000,000; II. Vacant lot in
Manila, 2,000,000; III. Shares of stock in a domestic corp., 60% of the business is located in the Philippines, 100,000;
IV. Shares of stock in a foreign corp., 70% of the business is located in the Philippines 200,000; V. Car in Manila,
500,000. How much is the gross estate assuming the rule of reciprocity applies? *
2,000,000
2,500,000
2,600,000
3,800,000

Statement 1: Under absolute community property relationship, the fruit of an exclusive property is classified as a
community property. | Statement 2: If there is a conflict on the zonal value and the assessed value of real property,
the independent appraiser’s value must be used for estate taxation purposes *
Only statement 1 is correct
Only statement 2 is correct
Both statements are correct
Both statements are incorrect

Statement 1: All properties and transfers which are exempt by law from estate tax are not included as part of the
gross estate. | Statement 2: Reciprocity is applicable only to non-resident alien’s personal properties situated within *
Only statement 1 is correct
Only statement 2 is correct
Both statements are correct
Both statements are incorrect

Extension for the payment of the estate tax shall be allowed on the ground of *
Undue hardship upon the estate or any of the heirs
Negligence
Intentional disregard of rules and regulations
Fraud

Statement 1: The gross estate of a nonresident citizen decedent includes all properties and interest situated in the
Philippines. | Statement 2: The independent appraiser’s value is considered in the determination of the real property
for estate taxation purposes. *
Only statement 1 is correct
Only statement 2 is correct
Both statements are correct
Both statements are incorrect

Ana, Filipina, died in Syria leaving the following properties: I. House and Lot in Syria, 1,000,000; II. Vacant lot in
Manila, 2,000,000; III. Shares of stock in a domestic corp., 60% of the business is located in the Philippines, 100,000;
IV. Shares of stock in a foreign corp., 70% of the business is located in the Philippines 200,000; V. Car in Manila,
500,000. How much is the gross estate? *
2,000,000
2,500,000
2,600,000
3,800,000

Ana, an NRA, died in Syria leaving the following properties: I. House and Lot in Syria, 1,000,000; II. Vacant lot in
Manila, 2,000,000; III. Shares of stock in a domestic corp., 60% of the business is located in the Philippines, 100,000;
IV. Shares of stock in a foreign corp., 70% of the business is located in the Philippines 200,000; V. Car in Manila,
500,000. How much is the gross estate? *
2,000,000
2,500,000
2,600,000
3,800,000

Statement 1: Standard deduction would actually reduce the net distributable estate. | Statement 2: Intangible
property within of a resident alien decedent is subject to reciprocity *
Only statement 1 is correct
Only statement 2 is correct
Both statements are correct
Both statements are incorrect

Statement 1: All proceeds of life insurance are estate tax exempt. | Statement 2: All donations for educational
purposes are exempt from estate tax *
Only statement 1 is correct
Only statement 2 is correct
Both statements are correct
Both statements are incorrect

Statement 1: The deductions from gross estate are valued at the FMV at the time of filing and paying the estate tax. |
Statement 2: Outstanding obligations by a person during his lifetime are terminated upon his death *
1/1
Only statement 1 is correct
Only statement 2 is correct
Both statements are correct
Both statements are incorrect

Pedro, decedent, owns a property valued at P1,500,000 at the time of his death. The said property was sold by Pedro
during his lifetime to Juan for P700k when its value was 1.2M. it was agreed by Pedro and Juan that the former will
enjoy the income of the property as long as he lives. For estate tax purposes, how much will be included in
determining gross estate? *
0
500,000
800,000
1,200,000

Statement 1: The transfer tax accrues at the time of transfer of the decedent’s property or rights to heir. | Statement
2: The property left by the decedent without a will shall be transferred in favor of the government. *
1/1
Only statement 1 is correct
Only statement 2 is correct
Both statements are correct
Both statements are incorrect

If the decedent died on or after 2018, the estate tax return should be filed *
1/1
At the time of death
Within 30 days after death
Within 6 months after death
Within 1 year after death

Mr. Pobre needs money to start a small business. However, he has no property to secure a loan from a bank so he
sought the help of his good friend, Mr. Rich. Mr. Rich then obtained a loan from BDO amounting to 1M secured by a
real property worth 2M to accommodate the request of Mr. Pobre. If subsequent to securing the loan and delivering
to Mr. Pobre the proceeds, Mr. Rich died, how much gross estate should be reported? *
1,000,000
2,000,000
3,000,000
0

Statement 1: Claims against the estate are unpaid are unpaid lawful obligations by the decedent which should be paid
by heir if the value of the estate is inadequate. | Statement 2: Loans granted by banks must be notarized to be
deductible from gross estate *
Only statement 1 is correct
Only statement 2 is correct
Both statements are correct
Both statements are incorrect

A decedent left 10,000 PLDT shares. The shares were traded in the local stock exchange. At the time of death, the
following were available: Fair Market Value, 400 per share; Mean between the highest and lowest quotation, 500 per
share; Book Value, 350 per share. What was the value included in the decedent ‘s gross estate? *
3,500,000
4,000,000
Whichever was the highest among the FMV, mean and BV
5,000,000

Pedro, decedent, owns a property valued at P600,000 at the time of his death. The said property was sold by Pedro
during his lifetime to Juan for P700k when its value was 1.2M. it was agreed by Pedro and Juan that the former will
enjoy the income of the property as long as he lives. For estate tax purposes, how much will be included in
determining gross estate? *
0
500,000
800,000
1,200,000