— ~ noose the letter of the correct answer. aster Taxes ri which of the following statements is false? Transfer tax is nposed upon gratuitous transfer of property of two kinds: estate tax and donors’ tax Classified as national tax None of the above Answer: D statement 1 Gratuitous transfer or donation is subject to transfer. tax. Statement 2: A donation which takes effect at the time of death of the donor is a donation rmoris causa subject to estate tax whilé a donation which takes effect during the lifetime of both the donor and the donee is a donation inter-vivos ‘subject to donor's tax. 2, Only statement 4 is correct Only statement 2is comect b. Both statements are correct 4. Both statements are incorrect a Answer: C Gratuitous Transfer: coh TAK = Donation inter-vivos: Donors Taxa tansferto Estate tax (a transfer tax) = Donation mortis causa Onerous Transfer The ordinary course of trade or business Business Tax + Income Tax Not in the ordinary course of trade or business Income tax only, if applicable ranemit property at death is known as: . Business t@x d, Income tax 3, Thetax imposed on the right tot a. Donor's tax b. Estate tax Answer: B + property without onsideraion between two or more 4, The tax imposed on the transfer o} persons who are living atthe time the transfer is made. a. Donor's tax c. Business tax b. Estate tax d. Income tax * Answer: A payment of transfer (2X res fon tha sty or rights to the 5 ‘Sia ; sale is a form of transfer transae i Se ee er mecrues atthe time of transfor ty the decedent’ Prope! heir, 459Estate 7 Only statement 4 is comect : Only statement 2 is correct Both statements are correct Both statements are incorrect Answer: D Transfer tax is applicable ony lo gratuitous transfers ‘A"sale’.in general, san onerous transfer, hence, not subject transfer ax. Transfer tax scores frm the effect ofthe gratuitous transfer (ypon death incase of mr nation and upon perfection ofthe donation incase of donation intros) cag 6. Statement 4: The rights to the succession are transmitted from the moment of deay, the decedent, notwithstanding the postponement of the actual possession or enjoyment the estate by the beneficiary. a Statement 2: The heirs succeed immediately to all the property ofthe deceased ances, at the moment of death as completely as ifthe ancestor had executed and delverey 7 them a deed for the same before his death. _ a. Only statement 1 is correct b. Only statement 2is correct c. Both statements are correct d. Both statements are incorrect “Answer: C 7. 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 o a particular her . Upon the death of the decedent d. Upon payment of estate tax. Answer: C 8. The subject matter or object of transfer taxes is aa. Right to transmit c. Properties of the decedent b. Decedent d. Beneficiaries + Answer: A Tho subject maller or ebec! of taxon are: + Persons, ohenvse known as ‘personal ax © Property ofervise known as property tox 2 RightorPrivege,othervise own as ‘excise fax” Eatolo Taxis a ex mposod on the ‘vege thal a persons given in cntoing fo certain exe the cisposion o his property ight transmi o take etfect upon death. Consequenth Estate Tex ‘eneneise fax mposed onthe act of passing the ownership of property atthe time of doa an on the property or right 9. Estate tax is a. Aproperty tax because it is imposed on the property transrritted by the decedent"? his heirs. 460cS Anindiect tax becau Estete Tee atthe hes ofthe donee ; - Ofthe decedent PYG the taxis shite ede Externe ra ee lifted on the executor or one Of property from the dea {Apol tax because itis also Altes NO lmPosed on esdensof the Philppnes wh 1e8 whether Filipino Answer: C © Eslate fox is imposed n on the d ‘pvlege" to transfer propet nt noon the "es gratuit ‘ransmited upon death but onthe ) tn elaincas Tagrag nn te ee asa ret wi the ainsatoorcut cr oa Personal obit stifed fo them The money used yt Ps. spectvey the fe ad pay the esate tox rsts administrator Used 0 ay the estate wil be laten om he get xecutor or any ofthe heir te will be taken from the estate For Philppine Taxation purposes, india a ooo indirect bene ian, ol a usta {axes pertain ony fo “business taxes” Estate laxis a Which of the following is incorrect? a Estate tax is an excise tax. Itis @ tax on the right to tr on certain transfers which are made by lathe crag jobeek taal a disposton, alent of testamentary Excise tax is an ad valorem aa tax. Itis assessed based on the net value of the estate Upon efecto te TRAIN Law estate taxis a roportonal i. sno lnger luated tax rate but to a fixed rate 1 aed of 6% on the net taxable estate of Estate tax is a specific tax. Answer:.D © Priorto TRAIN Law, estate fax is computed using a graduated tax table. 0 Specific tax is applicable only fo sin products and non-essential goods. Justification for the imposition of transfer tax. a b. © d * Redistribution of wealth theory Benefit received theory State partnership theory Allof the above Answer: D JUSTIFICATION FOR THE IMPOSITION OF ESTATE TAX ‘© Redistribution of Wealth Theory Fret at nberance i 2 conrbuig fac 1 fe mequalos 9 Wee au names Te impostion of esate tax reduces the property eceed Dy De SST us hea wong camabl dtrbuon of weath n soc. The (a base rae ee peat ol fe progressive scheme of taxation preaselY motivated by the dese to miigale the inthe present form. Benefit-Received Theory The law considers the service rendered by the O° his ws decedent, ether bylaw or naccordance wih ther benefits that acre tothe estate andthe hers Privlege or Stale Partnership Theory vyemment in the distibuton ofthe estate of the hes. For the performance ofthese services and the Slate collec the fax. 461bxstate r 4 pice RIE tne io Consequenly, the Slate asa pha, entanco snot a ight Du ito collect Ke she whch ° S prope eS yd et ty the protectin of the Sta Under ths theory, mh eon of property has the 1g toon acquired only wil pparet i the accumula 24 wen oF wand, a pon ay se, es Abit Pay Theory cis inthe nature of an nea abt to pay the tax and tug Conte Receipt of nhontance tho hands ofthe hers and benefixaes, Ths creles an to govexnment income. 12. Inheritance received is consitued as unequal cstrbution of wealth resutng imposition of estate tax desoribes: ‘oe a. redistribution of wealth theory c. state partnership theory d. abilty to pay theory b. benefit-received theory Answer: A stements is correct? 13. Which among the following sta by the statute in force atthe time of death ofthe a. Estate taxation is governet decedent. Estate tax accrues as ofthe death ofthe decedent. ‘Succession takes place and the right of the State to tax the privilege to transmit the estate vests instantly upon death. d. Allofthe above ° “Answer: D 14, The taxpayer in estate taxis: The decedent a b. The estate as a juridical entity c. The heirs or succession d._ The administrator or executor “Answer: B sha pertain only toa person, natural orjuiical For taxation purposes, ‘taxpayer y estate tax? 15. Who has the personal liability to pa! a. The decedent The estate as a juridical entity b. c. The heirs or successors d._ The administrator or executor “Answer: D Merpayer the esta a a rida person Bein a ure! prsat st cant fie te est cea pay the corresponding esate faxdue on sown, The Fears obigaton tb es Sree dmsratr, 35 te case may be. Inne absence of a rests with the exec! ‘aministator, any ofthe legal and rightful eis from: f death of the decedent ice of death is filed te tax retum is filed erties are delivered to the heirs 46. Estate tax accrues a, The moment of b, The moment the not c. The moment the esta The moment the ProP' 462‘ate Lee ge Answer: A $1c28550 fakes place and install upon death (Seon 4 eee Stato tart ‘Accrual shall coinde wth he ehecioe ee ne Death of the decedent Filing of estate tax return Either letter “b” or "o” whichever wi tee il result to higher estate tax liability eaes concept of Succession 4g. [tis a mode of acquisition by virtue of which, the property, rights and obligations, to the a extent of the value of the inheritance, of a perso another either by his will or by operation aes N are transmitted through his death to a. Succession ©. Prescripti ion b. Donation 4. Exchanges 4 Answer: A Tille IV, Chapter 1, Article 774 of RA No. 386, otherwise known as the Civil Code of the Philippines: cof a person, either through a last will and testament or in the absence of a wil, through provisions of law (new civil code) ‘Aihough obigationsfiabilfes ofa decedent may be transmitted tothe hei), the amount shal not ‘exceed the aggregate valve of properties and righ inert, Decedent is the general term applied to the person whose property is nether or not he left a will led to succession either by provision of a will or by Statement 1 transmitted through succession, wi Statement 2: An heir is a person cal operation of law. ‘a. Only statement 1 is correct b, Only statement 2 is correct c. Both statements are correct 4. Both statements are incorrect > Answer: C Answer: ie ond No 286 CCl Pe succession: Ea ansmissible property of a decedent including his The successor inherits all the tr liabilities. .¢ made liable for the obligati The successor can be made, value othe asset Ne rei goer te death fhe decedent © Insuccession, fruits and cred heirs even if they were not subjected to estate tax. ions of the decedent beyond the pass to the 463L ale" 4“ 4 Insuecesson, the successor can reuse the inhertane, ¢ Answer: B © ‘B'ishearect ough oigstonsatities of docoen no, {Cin shal nol exceed te age va ol popes onthe cite the bi © Fanaa, Oa popates upon deat shal te sec os Pr ‘s ath sal a be sujet tesa ox, owover, imap he subject f income fy Ray, © ‘D’iscared. In secession, eompulsry hors Inay be dsnheted (trough at * ni, hence, successors) or hes) shal also have ie ‘ight 1 elise or ren to Feguniatio of inertance may be fantamount fo danaton 1 tt © Dishnheriane shal beef Vis, Sujet oda et, fern the Civ Cod) sa oe, toad 1 Pn a thet iy te 24. Which of the followin, ‘Could legally Coyauecn ih : legally effect transfer of Properties through success ? |I. By operations of aw UI. By onerous transfer a only ©. Vand il only b.- Land I only dU, tand ii Answer: B © fhe Question especialy pening fo ansler rough succes 2 gra hence, exclude onerous tate Semi a+ pli 22. An act whereby a person is Dermited, withthe formalities prescribed bylaw tp. 3 certain degree the disposition of his estate, o take effec after his sean aad a. Contract ©. Wil b. Trust 4. Legacy Answer: C © * The Forms ofa “wi” shal be observed, othorwiso, tis considered void (© FORMS OF ALAST WILL AND TESTAMENT Ontinary Wil or Notarial or Atosted Wil "must be in wnting and execuled ita language or ile known to the tesa, \imustbe subscribed at the end thereof by the testator imsol orb the estar rane wn by some other person in his presence and by his express drechon {Nmust be attested and subscribed by tree or mero credible winesss in he presence tte {testator and of one another. Holographic wit ‘us be ently tenn alanguage or alot known othe estar + Dated Signed by the hand ofthe testator himselt te lis subject o no olher form and it may be made in or out of he Phiigines and reed winessed (At. 811 OC), 2B. is a written will which must be entirely written, dated and siest me hand of the testator himself. It subject to no other form and it may be made in or Philippines and need not be witnessed a, Ordinary will c. Holographic will b. Notarial will 4d Codicil 464Estate Tae gp Answer: C Ordinary wil, attested ‘ ld wil ana in case of ay insertion, canconet i 8 O78 andthe sr fon, erasure or, aed authenticate the same by alteration ina he rm is fl sign on ia holographic wl, tho signature raph fostator must and 826, CC) rement 1; The making ofa wis si a Sel a willis stict athe discretion of hid pes ly a personal act. it ca Pent or ator. Pan, oF camped hush ester fan nt 2: The but ae sir spoons 8 On spn slr ws of sud ning Srcon who maintains the vali is wil was publy known to be ina versie. ty ofthe will must prove that the testator rade ae f Oniy statement 1is correct F Ony statement 2s correct ¢. Both statements are correct {L_ Both statements are incorrect 4 Answer: o _ Refer to Article 784 and 800 of RA No. 386 (the Civil Coda of the Philippines) ‘The persons prohibited by aw to make a wl ae Thase below 18 years of age. | IL Those who are not of sound mind at ‘the time of its execution. a. lonly c. Both | and I b. Honly d. Neither | nor It Answer: C the elements of succession, except 26. The following are a. Decedent c. Heir b. Estate d. Executor Answer: D in the 27. Succession which results from the design form prescribed by law is known as: a, Legal or intestate succession b. Testamentary succession c. Mixed succession d. Ordinary succession. vation of an heir, made in @ will executed I & Answer: B 2B. The portion ofthe decedent's estate which the law reserves tis compulsory heiris called: a. Legitime «. Legacy 7 d, Bequest b. Free portion 465oN Oslate “as. to two calegones legtme and fee porten tuo ofa ast wil and lestament rnvoling real propartns 29. person who inherits specific personal property through a wil a Devise c. Heir b. Legatee d, Successor Answer: B 30. person who inherits specific real property through a wil a. Devisee «. Heir b. Legatee d. Successor Answer: A 31. Which of the following is a valid will? ; Us which reduces the legitime of compulsory heirs. ‘hat which increase the share of one heir wit oa ne heir without impairing the legitime ofthe oth c. That which transfer the legitime of one heir to the other heir. d. That which impair the legitime of compulsory heirs. Answer: B ‘A compulsory heir shall receive at least equal fo the value of his or her lagitme ‘A compulsory heir may receive more than his or her legiime, provided the excess wil come tome ‘tee portion ofthe estate 32. Which of the following is not a compulsory heir? Legitimate children and descendants, with respect to their legitimate parents or a. ascendants ult of letter “a’, legitimate parents or ascendants, with respect 10 ‘their b. Indefal legitimate children or descendants c. Widow or widower d. Relatives by affinity Answer: D Composition and Valuation of the Gross Estate 33. one of the following is subject to estate tax on properties situated within the Philippines only ; a. resident citizen cc. nonresident citizen b. resident alien d, nonresident alien “Answer: D itn and without “ Decedert is @ nonresident allen = within ony sient, assume Ihre js 00 rei 466Lstate Tie he personal properties of a nop, 9 eluded inthe 05 stat it Tesident, not citizen ofthe F “The intangible personal e Property in the Phy The intangible personal pro ilippines the esa ax aw apply. °°" he Phipps and ths wie ‘ a sonal fel Property is inthe Pippin d erty is shay e business i inthe Phipprn® ©! Stk of domestic corporation of hone *illppines, would not bes ity clause of Answer: B 2 Reciprocity rule is not ass ssSuMOd. He mobem provides eo eu. ay sho bo app ne aly described thal recprocily clause a applicable Statement 1: As a general rule, it it % Sen oe i esting el Fain opty se en Statement 2: The rule that the situs of intangible personal | residence of the owner does not apply ete a. Only statement 4 is correct b. Only statement 2 is correct c. Both statements are correct 4, Both statements are incorrect Answer: C Refer also (0 the guidelines ilustated in quizzer No, 28 36. Allof the following are considered intangible in the Philippines, except a. Franchise which must be exercised in the Philippines b. Shares, obligations or bonds issued by any corporation or sociedad anonima organized or constituted in the Philippines in accordance with its laws c. Shares, obligations or bonds by any foreign corporation 75% of the business of Which is located in the Philippines 4. Shares, obligations of bonds issued by any foreign corporation if such shares, obligations or bonds have acquired a business situs in the Philippines; + Answer: C a Which of the following item is considered situated outside the Philippines? a. Franchise in the name of the decedent which is exercised in the Philippines b. Share of stock holdings of decedent in a foreign corporation whose business is 90% done in the Philippines ©. Bond certificate issued by a dome: 4. Foreign currency deposited in ban! stic corporation owned by a non-resident decedent 3k outside the Philippines > Answer: D erty within the Philipines when 38. Sha 1d pro} res are not deemed pi ‘ova domestic corporation. The shares are issued b)L “italy 1 dy The shares are issued by a forei \gn corporation with no busine ne 285 SilUS in th ‘The shares are issued by a foreign corporation with 85% business in th; Philippines, : The shares are issued by a corporation organized under Philippine laws, Answer: B SITUS of INTANGIBLES: INTANGIBLE Tus 1. InGeneral Danio, 2 Shares, bonds, secuiias A + DC (tegardess of% of operation nthe Ph) Philippines . Fe © Ingeneral Foreign At least 85% of its operations is in the Philippines Philippines 9 Regardless of % of operations in the Philippines Philippines, but expressly provided that it had acquired business situs in the Philippines: 2. SALE of shares, bonds, securities of, = DC Philippines = FC Place of Sale 4. Franchise, copyright, trademarks, patents Wher itis exerciseg 5. Receivables Residence ofthe debtor 6. Bank deposits Location othe depesiay bay SITUS of TANGIBLE Properties 1. MovablPersona properly Where tis located 2. Immovable or real property ‘Where it is situated The following are general rules on situs. Which one is not? The situs of real property is the place or country where itis situated, The situs of tangible personal property is the place or country where such is actually located at the time of decedent's death. The situs of intangible personal property is the place or country where such is actually located at the time of the decedent's death, ‘The situs of intangible personal property is the domicile or residence of the owner. Answer: C ‘Which is not a test of situs? Residence of the debtor in case of accounts receivable Place of storage in case of shares of stocks. Location of depository bank in case of bank deposit Place of exercise in case of copyright. Answer: B ae ‘Statement 1: For estate tax computation, real estate shall be valued at fair mart at the date of death of the decedent. 468Estate Tae this is higher than the fair stement 2:11 Z0NAl VIVES availabe at date ot 6 bbe reported in the sal str ale Per A88°SS0r Gn satement ts conec only statement 2s comect 5 goth statements are correct 4 goth statements are inconect ap Answer: € | part of the estate lefl by A are preference shar : es of MERALCO. The share: ied and ered in the Philippine Stock Exch aan vate ‘ange. Which of the following rules of valuation is a et Se be valued using the arithmetic mean between the highest pe n at the date nearest the date of death, if none is available on the date of death itset i : The preference shares will be valued based on their book value. The preference shares will be valued based on their par value. The preference shares will be valued based on their fair market value as determined by the Commissioner of Internal Revenue Answer: A Pedro died on Nov. 2, 2021, leaving the following properties: Common stocks of Sunchamp Corporation (2,000 shares) - listed in the Philippine Stock Exchange (highest - 40: lowest - P38). 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 Greeneray Inc. (3,000 shares) ~ not listed in the stock exchange. Cost - P70 per share; book value - P60 per share: par value — P50 per share + Car (cost - P600,000; book value - P350,000; market value P 400,000) «Real properties (zonal value - P120,000; assessed value -P72,000) The gross estate of Pedro is . P824,000 ‘a, P816 500 ». P817,500 d. P846,500 % Answer: A ‘Sunchamp [{PA0+P39V2 x 2.000 shares ‘79,000 ‘AgriNurture (P45 * 1,00 shares) Mt 500 Greenergy (P50 x 3,000 shares) 150,000 car eno 1 i ae ae P816.500 of land. The following data were available 4, Pedto died on March 1, 2021 leaving a parcel in connection with the property: Assessed valued, six 6) months before deal 2,500,000 469lxstate Te Fair market value at time of fling estate tax retum on Feb, 28,2 i Zonal value, March 1, 2024 ee 3000.00 What would be the value ofthe piece of land in the gross estate? 0,c09 a. P2,000,000 c. P3,000,000 b. P2,500,000 4. 5,000,000 + Answer: A ‘ The higher between the FMV provid by the City or Provincial assessors (2SSessed va value provided by the BIR, atthe time of death Meal 45, Juan died on Feb. 1, 2024 leaving a 1,000 s 1 of land in Samy \ith the following valuations: = a nee eel ‘Assessed valued as determined by the City assessors 25,0009, m, Zonal value as determined by the CIR 18,000,000 Fair market value as determined by independent appraisers 28,000,009 What would be the value of the piace of land in the aross estate? a, 18,000,000 ‘. P28,000,000 b. P25,000,000 d. P30,000,000 Answer: B anew eae there are no other avaiable vetiaSon, fer market valves determined by independ, appraisers are ignored for estate taxation purposes 46, Acdecedent lef 10,000 PLDT shares. The shares were traded in the local stock exchange, At the time of death, the following were avaliable, Mean between the highest and the lowest quotations P500 per share Book value P3650 per share What was the value included in the decedent’ gross estate? a, 3,500,000 b. 4,000,000 c. P5,000,000 4. Whichever was the highest among te fair market value, mean and book value Answer: C ‘VALUATION of Shares of Stock Yiu taded, ihe average betwoen te highest and fowest quotation nearest he date of death © GE= 10,000 shares x P500 por share = P500,000 © Gammon or ordinary shares, not traded ~ book value a the date of death Prefoned or preference shares, nol liaded ~ par value 47. Which property is valued using the book value? Bonds being traded in the bond market Annuity Shares of stock not traded in the stock exchange Usufruct. + Answer: C © 48. Mae Kaya owns various shares of stocks from different companies during her lifetime. a the time of her death, the following details were provided to her administrator: 470Estate Tye 000 ordinary shares of Prosperoy; ' Fae outstanding shares © zens, cst had domestic corporation. Retained Earrings -P3,000 900° » Book value per share ~ p4q 0,000 ordinary shares of Umaangat ey Outstanding shares.” ‘00000 + Retained earnings -P5,000 009 * Mean value ofthe shares inthe stock exchange - PIs Porated, a publicly listed corporation hares; P10 par 000 ordinary shares of Bi See Saitama ‘alin Corporation. Bigatn’s shares are listed in the local * Outstanding shares - 1,000,000 * Retained earings P5,000,990 ee P19 Far + Mean value ofthe shares in the stock exchange P12 ‘Te correct amount of gross estate should be a. P2,300,000 ©. P3,740,000 b. P3,500,000 d. P3,850,000 + Answer: C Prosperous (80,000 sh. x P10) Umaangat (100,000 x P15) Bigatn (120,000 x P12) Total 48, Ana, a Filipina who died in Syria left the following properties: House and Lot in Syria 1,000,000 Vacant Lot in Manila 2,000,000 Shares of stock in a domestic corp., 60% of the business is 100,000 located in the Philippines Shares of stock in a foreign corp., 70% of the business is 200,000 located in the Philippines Car in Manila 500,000 How much is the gross estate? a. P2,000,000 cc. P2,600,00 b. P2,500,000 d. P3,800,000 % Answer: D_ ; Reler to the solution in #51 5). Based on the preceding number, but assuming Ana is a non-resident aken, the gross estate is a. P2,000,000 c. P2,600,00 ». P2,00,000 d. P3,800,000 Answer: ©; Retorto the soldion in #54 51. Continuing the preceding number and the rule of reciprocity applies, the gross estate is a. P2,000,000 cc. P2,600,00 b. P2,500,000 d. P3,800,000 471state 7. € > Answer: B Cilizen’Resident "NRA wio roe House and Lol in Syria 1,000, NPA Vacant Lot in Manila 2000000 P2000 oy ‘Shares of slock in @ domestic “100, oe corporation, 01 my ‘Shares of slock ina foreign corp. amnomo (0000 2g Car Mania 500,000 500,009 300,000 P2600 000 py 80 00 © Meat lho seca dma caput sos cinond ng rays consid ‘egardless of the % of its operations in the Philippines. eine te Pisin © The situs of shares of stocks of a foreign corporation is Philippines ONLY Ir At least 85% of is operations is in the Philippines, or If expressly provided that the foreign corporation have already ac Philipines (regardless ofthe % of operations inthe Philippines) © Do not assume reciprocity. v Ue buss sus yg 52. The following are Properties in the gross estate of a decedent with their fair Market value House and lot, family home in Quezon City ; P1,500 00g Deposit in the foreign branch of a domestic bank 500,000 Shares of stock issued by a domestic corp., certificate kept in the US 1,000,009 Pieces of jewelry 800,000 Receivable, debtor in Cebu 200,000 If decedent was non-resident alien and there is reciprocity, property excluded from gross estate is valued at a. 4,000,000 c. P700,000 b. P1,700,000 d. 200,000 Answer: B Deposit in the foreign branch of @ domestic bank 500,000 Shares of stock of a DC 1,000,000 Receivable, debiorin Cobu 200,000 Total exclusion ~P4,700,000 © Since the decedent is NRA and there is recirocty, excluded trom GE are properties wihou te Philippines and Intangibles in the Philipines. Shares of @ DC is always considered an estate in the Philippines, regardless of where the cericale is kept Fe tested caret nies be depository bank is located (regardless of whether the banks foreign or domestic). Therefore, the bank deposit in the problem is considered part of estate ‘wi. {he Philppines” because, alhough the bank is domesti, i was deposited fo its foreign branch 53. Anon-tesident alien left the following properties at the time of his death Bank deposit, Canada Bank deposit, BDO-Manila Car in Quezon City Investment in bonds, PLDT Investment in stocks, IBM, USA House and lot, USA mmoom> deat The country ofthe non-resident alien decedent does not impose a transl! °°". tax of any character with respect to intangible personal property of citizensscat Extate Tae ry. What properties will be included in the alien decedent? © philippines not residing in that fo philippine 9°0SS estate of the n, ‘All the properties above Properties B,C, and D. c. Property C only gd. Properties A and c reign count 'on-Fesident se ge Answer: C INRA decedents are taxable on} Intangibles in the Philippines a Inthe problem provided, the in his estate are tangible on their estate 10 Brevi eae nthe Phipins, recon we apps decedent is NRA and reciproc reciprocity fore, incu ropes ketene ea appa Thorefor, included the same data in sa, using the preceding number, assuming the decedent is a resident alien, and his country does not impose tre i age oss estate shoud oe taxes to Filipino not residing therein, the a. Allthe properties above Property B, C and D ¢, Property C only d. Properties A and C Answer: A - Citizen and Resident decedents are taxable on the li oe me 55, Which of the following shall be included in the decedent's gross estate? | Share in common properties of the surviving spouse iL. Capital or paraphernal property of the surviving spouse {i _ Properties outside the Philippines of a non-resident citizen decedent. Nv. Intangible personal property in the Philippines of a non-resident alien a. lonly c. | Ill and IV only b. [and Ill only d. 1H, Mand IV “> Answer: C Revocable Transfers Transfer in Contemplation of Death and 56. 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. cc. The transferor retains the full or naked ownership and control of the property while alive. | 4. The transfer should be void if the donor should survive the donee. “Answer: A ents is incorrect? he decedent during his lifetime may revoke, alter, amend, or nt or ownership of the property. 57. Which of the following stater a. Ina revocable transfer, the terminate the terms of enjoyme!Cslale ue « bie transfer '§ always includible i" the gross estate of the test, re transfor shall Be rt ad of he decedent tang, nena nae to revoke terms may be exercised just ongg é 0 Answer: D sonnuay 2 various ailments on Jan\ ry 1, 2018. Moy sed of properties to his children and reset Ino: o old, was diag! dispose all his mo Aa tal i ment disposing all his propen'e’ ilippines tq fast will i rae de donations inter-vivos to his other relatives ag ch children. On the ae states. Lolo Sot died a month after disposing all his roperta i his other relatives be included in his one 8 ties in the Unite La the properties donated by Lolo Sot to ae Oe were not his properties anymore at the time of death. b. Yes, because the donations were donations mortis causa and should be governeg by the rules on estate taxation. No, if the donor's tax had been paid already on the donations. No, because they were not transfers in contemplation of death, since the donations were not simultaneous with the ‘execution of the last will and testament. * 58. Lolo Sot, 95 years 010, by though of death, he decided 1° He executed a G d. “Answer: B The motivating factor of Lolo Sotin transferring his properties was the “thought of his death” He both transfers, in substance, were made in contemplation of death. Consequently, both tensor, ‘must be included in his gross estate 59. To prevent undue avoidance of tax, inter-vivos disposition in contemplation of death is subject to a. Donor's tax c. Income tax b. Estate tax d. Excise tax “Answer: B 60 ed ening a Ha transfers in contemplation of death, except : a Bete ; et donated property where the donation will take effec &. The decedent Fela a a: regular course of the business operation. 4 ma hl at is stl alive le condition that he/she will enjoy the fruts * Answer: B a. {0 take effect after his/her death Perea ge NRC CON oy Estate la ec . ial Power of Appoj, siaementt: ASpecial power f Appointment (SPA) only fom among a designate cla nent authorizes the donee of the ower to appoint siatement 2: The donee-dag, of persons other than himselt. m Ha atte. the propery gg, PEAl power of apres ly holds the Only statement 1 is cone rey Shall form Ppointment ony hol a. Corre, Patt of the donee. Only statement 2ig ae lonee-decedent's gross estate. c. Both statements are 4 Corr Both statements are oa incorrect 4 Answer: A © GPA= Add to GE; spa. ©The power granted tothe gaat” tom Ge Appoiniment (GPA) hehe co" ©" cent dcedent shal bo known as “General Power ol ‘not merely based on the desie of hove 30 “anyone” wha should inherit the properly, and Hoss estate, %. lencompasses ownership, hence, shall be 9 The power granted othe dee death crtent decedent shal be known as “Special Power of Appointment (SPA)"ithe/ rd Thus, the dancer '0 choose only rom those identified by the predecessor. was, ‘SPA was ony ent “ese i enn eet ni ce 62, Which is correct? a. The person who creates the Power i is the b. The person whois ghee donor ofthe power (donor decedent). Ie right te ise (donee devs Tht fo exercise the power of appointment is the donee . The property being transferred and the sub; intent i Bp pact Subject of the power of appointment is the d. Allofthe above “Answer: D 0 The donor-decedent is also known the present decedent or rst hei 8 the predecessor while the donee-deceden i also known as 83. Which of the following statements is incorrect? a. A.general power of appointment authorizes the donee of th person to possess or enjoy the property. b. A general power of appointment makes the donee of the power the owner of the property, ©. The appointed property passing under a general power of appointment is not includible in the gross estate of the donee-decedent, j 4. None of the above I 1 power to appoint any © Answer: C; (GPA = Add to GE, SPA = exclude from GE) 64. Siatement 1: The power of appointment is "general" when the power of appointment authorizes the donee of the power to appoint only from a restricted or designated class of Persons other than himself. Statement 2 Special power of appointment exists when the power of appointment authorizes the donee of the power to appoint any person he pleases,6 66. 67. 68. al rect a. only state” ea correct b. Only sie aa correct Bon seents ae inoorest 4. Both sta 7 co = SPA + Answer: D; (statement ' ¢ of land; naked title to Bonifacio ang aa in ris wil PETE t9 Bonifacio. ‘The transmission fro ssiatement 1: Aguing’ a ial lives: ther iy Bethe merger of the usuaae " utruct to Rizal fOr as Pimeubject estate ; nd Riza isexempt: ‘Aguinaldo to Bonfacr io upon the death of Re ee rother Fidal whois entrusted rel tego i HY ral Tope © OV. 8 98 of Fidel, when statement nit 8 i nd tan Fi is subject to Dy tc ge the tr miss from Fidel t0 iS son DV is subject 0 tax. Jl 28 of a a pecetly statement 118 COTEC b. Only statement 2's correct c. Both statements are corre d. Both statements are incorrect hee fe itacio and Rizal = subject 10: estate tax. Bonifacio to Rizal = exempt 2 at and DV = ubject fo estate 12% Fidel to JOV = not subject f0 estate fax luded as part of gross estate One of the following donations is not incl Revocable transfers tion of certain rights a b. Transfers with reserval Transfers under special power of appointment 4. Transfers in contemplation of death + Answer: C led in the gross estate? Which of the following transfer is not include a. Transfer with reservation of certain rights b. Lao for insufficient consideration c. Transfer for an adequate and full consideration in money o! E d. Transfer in contemplation of death Mei ied + Answer: C ° Frstrtoren adequate and fll consideration in money or money's worth = valid sale Udabieiad emery worth includes tangible and intangible property, services, and other ible f.4 money value (Monoreh v US, 2009, US Dist LEXIS 64546) Statement 1; Pe ‘edro di je ae oe Juan the power to appoint a person who will inherit his g an only choose among Ana, Lorna and Fe. Juan decided Fes to transfer the pro pert sian Ihe propery to Fe trough the formers wil. The transfer fom Juan toEstate Tae fement 2. During A's lifeti setae 8 Ce het ie ov ait is erie fhe second year MOWEVEr, A died, The ‘A within 3 years, A shall revoke the transfer. '" acorn sslement tis oa Car should form part of A's gross estate. b. Only statement 2 is correct c. Both statements are correct d Both statements are incorrect Answer: B; (Stater 7 aa 'ment 1 = SPA, Statement 2= revocable transfer subj to estate tax) em a fromthe Rs and acquisitions exempt rom vars ak, €x02pt ‘with the desire of the ecsieent jonee in favor of another beneficiary in accordance Transmission or deliver ‘ : tothe ‘ideicommissary Of the inheritance or legacy by the fiduciary heir or legatee , _ The merger of usufruct in the owner of the naked title All bequests, devi i : 4. Reais ises, legacies or transfers to social welfare, cultural and charitable Answer: D Choices “a” and “b” are properties “held in trust” pr trust" only by the decedent. co The decedent in letter ‘c* i not the owner ofthe propery, therefore, excluded. ‘© Bequest to Charitable institutions - Requirements for Exclusion Al beatae devises, legacies or transfers fo social welfare, cultural and chartable institulions, n> part of the net income of which inures tothe benefit of any individual. Provided, however, that not ‘more than thily percent (30%) ofthe said bequest, devises, legacies ot transfers shall be used by such institutions for administration purposes. ~ Insufficient Consideration 79. On the belief that Pedro is about to die, he sold to his daughter a parcel of land valued at 23,000,000 for the same amount. One (1) year later, Pedro died of a car accident. At that time, the property had already a value of P3,500,000. For Philippine estate tax purposes, the amount includible in the gross estate is a. P500,000 c. P3,500,000 b. 3,000,000 4. nil “> Answer: D oi the proceeds ae substantially the same or higher than the FMV of th property sold, itis @ bona fide or valid sale and therefore excluded from the gross estate ‘ 7 Viad died on October 20, 2018. During his lifetime, upoh knowing that he had Stage 4 cancer, sold his Lamborghini car to his son for P4,000,000. The fair market value of the car at the time of sale is P3,000,000 while itis already valued at P5,000,000 at the time of death. The amount that will be added to gross estate is: a. PO cc, 800,000 b. P500,000 d. PA,200,000 % Answer: A. ttisa valid orbona fide salesing number, it 72. Based on the pr ? = 7.000.000 6. hatte se proceeds 1s assur fo be Poy rrctncus sale means 7 the time of his death. The 5, o nC. > Answel 000 at not 700, mit Value ag 4 73. Pedro, decedent owns a property valued a to Juan for property was sold by Ped Oo ang Juan that the former will onioy ee Of the 1.200.000. It was io Sah Philippine estate tax purposes. how Mcludeg ive property as long ashe Ives ining gross estate in dstornining 9 . P#00,000 b. P500,000 dg. P1,200,000 : of FHV upon death over the pro iste 2c all be used ono deter, tate ross ome oftransier of P1200 The anon ed 700000 proceeds Tre FO unr ro ket value of the 74. Based onthe preceding number, ifthe fair mar os only ‘2500 000, how much will form part of gross estate? c. P800,000 d. P1,200,000 property at the time of death a. PO b. P500,000 “Answer: A of the deceased, his executor or administrator ‘as an urance n his own life is: ble by the estate jcy taken by the decedent upot yross estate; te whether the beneficiary is revocable or irrevocable; if the beneficiary is revocable; evocable. Proceeds of Life Inst 75. Amounts receivat insurance under pol a. Excluded from the gi Part of the gross esta b. cc. Part of the gross estate d._ Partof the gross estate if the beneficiary is irre Answer: B ‘APPLY THE FOLLOWING RULES INCLUDED IN THE Gross Estate: Proceeds ofl insurance taken out by the by the decedent on his own life should be includ stale f the following requisites are present ee 1. Itmust be an insurance on the if of the decedent 2. The beneficiary must be either of the following, © His estate, executor or administrator (revocable or not) ‘Any third person (other than his estate, administrator or executor) provided that the designation 1s not inevocable aoe IN THE Gross Estate: ‘ceeds of life msurance taken out by the by the decedent on his own life should be excluded # We gross estate if the following requisites are present 7 ae be an insurance on the life of the decedent he beneny must be OTHER THAN, lis estate, executor or administrator (\., children, spouse, parents), and © The designation is irrevocable B. Tax exer nce nc er for the bene! pt insurar Pe (ie, group insurance taken out by the employer for the bene'i ofr Estate Tae Taken oul by decedent's ‘EMPLOYER ~Excided trom the GE. Not subject toestale tax : Taken ot : ____Taken out by the decedent Berekiny Esl antaror Oe Rene aaa »xecutor tal _ admins of excite Designation Revocable Indu nthe E Include __Inevocabie__Incudein the GE Eats tea he a . La Code presumes thatthe designation ofa poicys revocable m Cae bs ea 'ebenetcary sno clearer sent Secon 11 of the Insurance Code (RA I Proves ta The sued shoud have the ng o change he benficar he designated he Doley, unless he tas expressly waived this right in said policy. Notwihstanding the forego.) pit ir a aon shal be deemed rege, °° chance thebenefiarycunghis etme he dest ¢. Which of the following is not included in th ? i a, Revocable transfer where the conieaon fot sfn b. Revocable transfer where the Power of revocation was not exercised. c. Proceeds of life insurance where the beneficiary designated is the estate and the designation is irrevocable d. Proceeds of life insurance where the benef i designated is the mother and the designation is irrevocable. “> Answer: D T 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 whether the beneficiary is revocable or irrevocable c. Not part of gross estate if the beneficiary is revocable d. Part of gross estate regardless whether the beneficiary is revocable or irrevocable > Answer: C Proceeds of life insurance to the extent of the amount receivable by the estate of the deceased, his executor or administrator under policies taken out by the decedent upon his ou fe shall be \ Part of the gross estate irrespective of whether or not the insured retained the power of revocation ll. Not part ofthe gross estate if the beneficiary is irevocable UL Part of the gross income if the designation of the beneficiary is revocable 'V. Not part of the gross income imespective cof whether or not the insured retained the power of revocation a. and I . land IV ». |and il d. only! % Answer: DEstat, Ae ‘oceeds shall not be included % pods fed in sof te folowing fife insurance Pr the hg sq Which of the” gross ee ary is the estate, executor or administrator and the Sesignajig peneficary 1 : vocable i ehowary IS revocal tae a is the estate, executor of administrator and the 25 naon eneficiaty 8 : peneficiaty IS irrevocable; 7 «Beneficiary is other than the estate, executor or administrator and the eign ' the beneficiary iS revocable. at : Beneficiary is other than the estate, executor or administrator and the Aesin, the beneficiary is irrevocable. alg +> Answer: D PROPERTY RELATIONSHIP; MARRIAGE SETTLEMENT 80. Which of the following statements is incorrect? a. Marriage settlements may fix the property relations of spouses during the mat within the limits provided by the family code mage The purpose of system of property relationship is to distinguish a ‘community property from an exclusive property. b. Conjugal 4, c. Modifications or amendments in the marriage settlements may only be all ‘the celebration of the marriage. lowed a, None of the above Answer: C; (amendments shall be made prior to marriage) 81. Statement: Conjugal partnership of gans, absolute community of property and comps separation are al valid regimes that may gover property reations between spouses Statement 2: Under the regime of absolute community of property, the husband andthe wife place a common fund the proceeds, products, fs and income from the separ property and those acquired by ether or both spouses through their effort or by chane a. Only statement {is correct Only statement 2is correct c. Both statements are correct d. Both statements are incorrect “Answer: C 82. Under the lav, the property relationship between husband and wife shall be governed i iat order? |. By marriage settlements executed before the mariage. \\, By the provisions ofthis Code W. By the local custom, al, M elt AM a Answer: A,i a 86. Listate lige xcs propotty of the wito is called? income © pa S. paraph 2 C Answer exclusive proper ofthe husband is cated? a. noone ©. paraphernal b. capital d. equity gp Answer: B ross estate of a de Me Oris capital on ee married al the time of death will be composed of: His capital property and the ee property and the common property Common property property His capital property b. 6. 4 Answer: B 5 Mis inconoct, Exclus gross esiale. ve propetis of the surviving spouse shall nl be included inthe decedent's o Briscomect The decedom's gu ‘5 corel The decades goss ee shal be compos of hier eine properties and statement 1: In the absence of marriage settlements executed before the marriage, the property relationship between husband and wife shall be governed by local custom and by the provisions of law, respectively, Statement 2: Claims against insolvent persons may be charged against exclusive property a. Only statement 1 is correct b. Only statement 2 is correct c. Both statements are correct d. Both statements are incorrect Answer: B Statement 1 - Order of Prioity Agreement of the spouse: o By operations of law ° Customs or traditions executed before marriage ‘or when the regime agreed upon is void, the In the absence of a marriage settlement, ied before August 3, 1998 shall be governed property relations of the spouses who marti by. @. Absolute community of properties. b. Conjugal partnership of gains ¢. Absolute separation of properties. d. No property relations * Answer: B88. Inthe absence of a matriage settlement, or when the r ‘egime agreed y property relations of the spouses who were married on or ater figs get . , a. Absolute community of property 'b. Conjugal partnership of gains c, Absolute separation of Properly 4. Either absolute community of property or Conjugal partnership of Gains Answer: A 89. The following are exclusive property of each Wr 0 a. Thatwhich sack perty Spouse. Which one is not ‘acquires during the marriage by lucrative ti b. That which is purchased th aie rs with the exclusive money of either spouse. ¢. Thatwhich is Acquired by exchange with other property belonging to the Spouses 4. That which is brought to the ‘Marriage as his or her own. Answer: ¢ Conjugal Partnership of Gains (CPG) $0. One of the fllowingis a conjugal property ofthe spouses a. That whichis brought to the marriage as his or her own 'b. That which each acquires during the marriage by inheritance ©. The fruits of an exclusive property d. That which is purchased with the exclusive property of the wife Answer: C Conjugal and community propery, ae genealy interchangeable. However, ihe poten sy sl the type of the mariage stent, apply the folowing rls. The term “conjugal property’ shall potain io common property under CPG The term ‘community property’ sal pertain to comfon property under ACOP 9 \Which ofthe following is exclusive property under the system of conjugal partnership | gains? 4 a. Property before marriage . Inheritance during marriage ©." Property acquired during marrage out of exclusive money 4. Allofthe above. Answer: D 92. Which is not an exclusive property ofa spouse? That which is brought tothe marriage as his or her own, . That which each acquired during the marriage by gratuitous tite. ©. That which is aoquired by right of redemption 4. That which is purchased with the spouses’ common fund. Answer: D| | si Tay Estate Lae munity of Property jute Om po ne ofthe flowing is not a community a property inherited by the husban 2 winnings in gambling Frits of property inherited during the marriage Fruits of property inherited before the marriage 'y property of the spouses \d before marriage b o a Answer: © cP a roperty acquired duri a Cote on FRUITS. ing mariage, under ACoP, is generally exclusive property ‘ACoP. FS - Fruit will Follow the GPG. AFC - All Fruits are Common (regardless of source) Since the fut n this particular case came rom inhentance during mariage (an excusive proper) ‘shal be classed as exclusive property Source (ie., community if from communily property) . Which of the following is exclusive property under the system of absolute community of roperty? oP roperty before marriage pb, Inheritance during marriage Property acquired during marriage d._ Allof the above. Answer: B gs, Properties owned by the spouses before and brought into the marriage shall be classified as. Absolute Community Property Conjugal Partnership of Gains a ‘Community Conjugal b. Exclusive Exclusive ©. Community Exclusive d. Exclusive Conjugal + Answer: C The fruits on properties owned by the spouses before and brought into the marriage shall be classified as: Absolute Community Property Conjugal Partnership of Gains a Community Conjugal b. Exclusive Exclusive C. Community Exclusive d Exclusive Conjugal Answer: A 51. Properties received from gratuitous transfer during marriage shall be classified as. Absolute Community Property Conjugal Partnership of Gains a, Community Conjugal b Exclusive ExclusiveExclusive Conjugal community Exclusive rransfer will be classified as; : «> Answer: B tous transt yatuitou! pring mariage 9. Conjugal Partnership of Gains Conjugal 98. The fruits received dt 8 ‘Absolute Co! yn - Commune Exclusive . b. Exclusi Exclusive é Cote Conjugal d. “Answer: D fer during mariage are generally classified from grtuous ane op and the donor oF testator expressly ora hay Properties recived on prope’ ess . it shall "Yim par of te common ‘property of fe SPOUSES iclusive USe shall be classified as: Ce | Partnership of Gains 99. Personal property for personal and ex “Absolute Commun) it onjugal a ‘Community yonjugal Exclusive a. b. Exclusive i c. Community Exclusive d. Exclusive Conjugal Answer: B © General Rule: Exclusive © Frowever, jowely for personal and exis se’ under ACOP, shall be classified as commun propery 35 provided under Secon 92 tthe Now Gil Code. This rule, however, shal nt ae CPG. is effected at the time of transfer of the decedents 400. Statement 1: The right to succession is property or rights to the heir. Statement 2: Ana is the surviving spouse of Jose. Her share in their community property is classified as her exclusive property and shall form part of the decedent's distributable estate. a. Only statement 1 is correct Only statement 2 is correct Both statements are correct Both statements are incorrect b G. d “Answer: D State lalement 1 is incorect. It shall be effected at the time of death of the decedent o The 7 common poperis of the spouses shall be included in the GE surviving spouse in the common property shall nat be included in of “distributable net estate. The next four (4) questions are based on the data provided below: e next four (4) questions are based on the data provided below. Mr. J. oe Ton the following properties: in Cebu, acquired be : Income from rest house in cae ee the determinate”condominium in Davao, brou Estate Tae e >, brought to marriage by wit 3,600,000 income from condominium inDavag 0° PY wile 360,000 own house in Quezon City, acquired durin 10,500,000 Inoome from a house in Quezon City dees 1,050,000 Car, inherited by wife during marriage (the decedent provided in his wil that it shall form part of the common properties ofthe spouses) 1,300,000 Jewelry, acquired during marriage for exclusive use of the wife 200,000 jot. How much is the conjugal properties under Conjugal Partnership of Gains? a. P12,510,000 ©. P22,310,000 b. P18,510,000 4. P23'610.000 > Answer: A Rest house in Cebu 2 Excl, of the decedent (Mr. J) Income from rest house in Cebu ‘600,000 Conjugal Condominium in Davao “.— Exal ofthe Surviving Spouse Income from condominium in Davao 360,000 Conjugal Town house in Quezon City 10,500,000 Conjugal Income from town house in Quezon City 1,050,000 Conjugal Car, inherited by wite during mariage i Jewelry for personal and exclusive use : Total Conjugal Properties 12,510,000 Excl of the Surviving Spouse Excl. of the Surviving Spouse 102. How much is the gross estate under Conjugal Partnership of Gains? a. P12,510,000 c. P22,310,000 b. P18,510,000 d. P23,610,000 “> Answer: B Rest house in Cebu 6,000,000 Income from rest house in Cebu 600,000 Condominium in Davao Income from condominium in Davao 360,000 Town house in Quezon City 40,500,000 Income from town house in Quezon City 1,050,000 Car, inherited by wife during marriage : + Jewelty for personal and exclusive use Total Gross Estale under CPG 8,510,000 Excl. of the decedent (Mr. J) Conjugal Excl. of the Surviving Spouse Conjugal Conjugal Conjugal Excl. ofthe Surviving Spouse Excl. of the Surviving Spouse 103. How much is the community properties under Absolute Community of Property? a. P12,510,000 c, P22,310,000 b. P18,510,000 d. P23,610,000 % Answer: D Rest house in Cebu 6,000,000 Income from rest house in Cebu 600,000 Condominium in Davao 3,600,000 Income from condominium in Davao 360,000 Town house in Quezon City 10,500,000 Income from town house in Quezon City 1,050,000 Car, inherited by wite during marriage 41,300,000 Jewelry for personal and exclusive use 200,000, Total Gross Estate under CPG 23,610,000 Community Community Community Community Community Community Community Communitybe atotous wanstor (ihertance O¢ donteg, aq no ear oF dor ABST POM hat roperty Under ACRE ray exchis¥® mares conmsny orn sf Properties’ ross estate under Absolute Community of Prop 104 How mec le estat 12,5104 b. p18.510,000 d. P23, Answer: D 1 may be classified as excusive Or Common, Hons pug ) Under bpoettieri nal rope ae classified as commu properties : below is not included in the gross estate of a decedent, except: mon properties of the surviving spouse, Exclusive property of the surviving spouse: n decedent 7 . ; ili resident alie Properties outside the Philippines ofa non. resi é tangible personal property in the Philippines of a non-resident alien when the tg of Reciprocity applies. 105. The list provided a. Share in com “Answer: A : aaa The entre common property shall be included fst the gross estate before the 1 share or, surviving spouse is deducted 'B to D” shall be excluded from the GE Use the following data for the next two (2 questions: | decedent, married, who died on April 1, 2021 were as The estate of Pedro, resident citizen follows: P14,000,000 House and lot (Family Home) The lot was acquired at a cost of P3M, five (5) years ago, before marriage, while the house was constructed on March 1, 2021, during marriage, at a cost of P10M from partnership funds. The lot had a FMV of P4,000,000 after construction of the house. Other properties acquired during marriage 6,000,000 Vacation house in Batanes inherited on Feb. 14, 2020, during marriage, 2,500,000 then with a fair market value of P1,300,000 oe Property in Davao, received as gift during marriage from a friend on 2,300,000 oe fo 2020 (the applicable donor's tax was not paid by the donor) a ‘ental income on the property in Davao up to the time of Expenses/Claims: , of death a Funeral expenses Judicial expenses sence Casualty losses incurred on Dec. 10, 2021 00,000 Claims against the estate 1 600,000 4,000,000 Medical expenses within 1 year prior to death, only half was receipted 06. How much is the net ta: '@ under Conjugal Pai es xable estat a Ce | Partnership of Gains’ b. P6,426,000 d. P1.348.0 0 Answer: Dsouton fenty tone face, Soman art tome se prao00.00 ter popertios 000,000 Vacalion house premio Rontal income Total Gross Estate ORDINARY DEDUCTIONS. Casually Losses Clim against the estate Vanishing deduction’ 52.000) NETEstate belore Special Deductions and P7,848,000 Share ofthe SS SPECIAL DEDUCTIONS: ‘Standard Deduction (6,000,000) Family Home (9,000,000 Lol = PAM House = PIOM2 = PSM 750.00 SHARE OF THE SS (P15MI2) a TAXABLE NET ESTATE PH, 348,000_ Value to lakerntial Basis (vacation house) P1,300,000 Proportional deduction (P1 3264 x P2 2M 110,000 Fria Basis Vanishing Deduction VANISHING DEDUCTION FORMULA (PROFORMA COMPUTATION): oa ean betwen FV ol he death v_FIN upon meanceordonabon) Px Less Matgage pa by present decedent (on modgaged assumes) 3) intial Bass (8) Pax Less: Proportional Deduction | inal BasisGross Estate x (LITe + TFPU)] on) Pex 0% a _ Pex} RATE OF VANISHING DEDUCTION: interval of Acqusion(nhentance or donation) — and death of present decedent RATE Win # year 100% More than | year but not more than 2 years 80% More than 2 years but not ore than 3 years 60% More than 3 years but not more than 4 years 0% a More than 4 years but not more than 6 years Note +The value of he lot amounting fo PAM is assumed fo be the FHV ofthe property upon death of the decedent since the decedent died shoy after construction ofthe house The property n Davao, received as gis nol subject o vanshing deducton because the applicable |__ no’ tx was not paid by the dona Funeal,juiial and medical expenses are no longer deductible from the gross estateMe sty of the decedent oy ere win one 1) Year eat vate es were 4 of common proper ut uctble ined to be pa es, ‘Te casual erence, ded ie, are assul ton wath the SOUFCE of the selene pss proved len ame classification wih Of he cong mer EPecommon; ACOF ius: 1 Rental income 2 estate under Absolute Community of Property? sor. tow muon s the nt tax@ble °F Sa9,000 a. P4,836,000 . P2,174,000 b. (P2,174,000) . Common k ee Answer: C scsi | Commen, .—Toy Family home-ot 100.000 Faniy hone tuse oo oe Other properties 2,500, Vacation house 2.300000 ee eo ce Eee 76 000,000 20,000,000 P26,000,009 Total Gross Est ‘ORDINARY DEDUCTIONS: (600,000) Casuay Losses «1'500,000) Claims against the esta ; 2600 a iseom Vanishing deduction (refer to preceding #) , 7 aie oso. Special Deductions and, P5,048,000 17,800,000 22.4800 Share of the SS ‘SPECIAL DEDUCTIONS: Standard Deduction (5,000,000) Farnily Home (P14M/2) (7,000,000 SHARE-OF THE SS (P17,800,000/2) (8,300,000) TAXABLE NET ESTATE P1948 000 Losses Pian RCOs ss. 108. Pedro died in 2021. The following are the requisites in claiming casualty losses in the computation of estate tax, except aocm 109. Vario Losses are not compensated by insurance, Losses must not have been claimed as deduction in the computation of income tax; Losses were incurred not later than one (1) year from the time of death None of the above Answer: D us types of losses incurred by a decedent's estate were as follows Loss due to typhoon, a day before the decedent's death, P1,000,000 Loss due to shipwreck, ten (10) months after the decedent's death, P500,000 Loss due to robbery, 1 ¥4 years after the decedent's death, 2,000,000 Gambling losses before death, P2,250,000 _Estate Te How much is the deductible losses from the gross estate of the decedent? ‘a. P500,000 P2.500,000 b P2,250,000 4 P1,500,000 4» Answer: A (P5000,000) Only the loss duo to shipwreck is deductible from the gross el Indebtedness OF Claims Against the Estate and Unpaid Taxes 110 Deductible clams against the estate or indebtedness in respect of property may arse out. except a, contract ©. operations of law b. tort d. none of the above > Answer: D 111, Which of he following statements pertaining tothe duly notarized certification from the creditor a8 10 the unpaid balance of debt of debt by the decedent including interest as of the date is correct? Ifthe ceditoris @ corporation it shall be signed by President or Vice-President or other principal officer of the corporation. ifthe creditor is a partnership, it shall be signed by any of the general partners c.__ Ifthe creditors a bank or other financial institutions, itshall be executed by the branch manager of the bank/financial institution which monitors and manages the loan of the debtor-decedent. 4d. Allof the above + Answer: D 112, The following are the requisites in order for claims against the decedent's estate may be deductible, except which one? a. They must be the personal debt of the decedent b. They must be enforceable in court c. They may have been condoned prior to death d.— Ifthe loan was contracted 3 years before death, submit statement showing the disposition of the proceeds. Answer: C 113. Which of the following is not deductible from the gross estate of a decedent? |. Income taxes on income received after death |. Property taxes not accrued before death MW Estate Tax a. land Il only c. All of the above b. land Ill only d. None of the above Answer: C Accommodation Loan : 114. Ifa loan is found to be merely an accommodation loan where the loan proceeds went to another Person, which of the following statements is incorrect? @ The value of the unpaid loan must be included as a receivable of the estate b. Ifthere is a legal impediment to recognize the same as receivable of the estate, said unpaid obligation shall not be allowed as a deduction from gross estate. .Estate 4, rorgaged propery tote cnet decedent iterest ng © Inatinstances. the mot aiways form part ofthe gross estate 4 None of the choices Answer: 0 rement in daiming unpaid Mortgage as deduction fy 115 Which of the folowing is not a requirement — Purposes? propery, net ofthe mortgage indebtedness 2 The far market value ofthe mortgaged = included in the gross estale ey undelete ere iF market V mortgaged property u 29e i b__The fair market value of the mortg rite should be included in the gross estale, © The loan must be contracted in good faith The loan must be for an adequate and full consi Answer: A. 116. Mr. Pc to star a small business. However, he has No property to sen, loan from bark 9) he Cong tne help of is good friend Mir. Rich. Mr. Rich en Sbained aie from Banco de Uro amounting to 1,000,000 secured by eal property worth 2.09) accommodate the request of Mr. Pobre. f subsequent to Securing the foan and delverng iy Pobre the proceeds, Mr. Rich died, how much gross estate should be reported? a. P1,000,000 c. P3,000,000 b. P2,000,000 d. nil Answer: C; (2M+ 1M) 117A piece of land wit a far market value of P10,000,000 at the time of the decedents death vag included in the gross estate, Upon closer examination, you found out thatthe value used was neg 2,000,000 unpaid mortgage on the same land. How much should have been included and dedicieg from the gross estate? Amount to be included Amount to be deducted a P 12,000,000 2,000,000 b. P 10,000,000 2,000,000 ©. P 10,000,000 0 d. 8,000,000 0 Answer: A VANISHING DEDUCTION 118. The following are the requisites for vanishing deduction to be allowable, except one. 3 The estate tax of the prior succession must have been finally determined and paid. b. The present decedent died within five (5) years from date of death of the prior decedent d. None of the above Answer: DEstate Tae Manila died intestate on November 2, 2916. ene tuted through pubkc sale of properties lef by Bemardo Nha, a ctzen of the Phi fi Biog ns GOs eae ate propert ded 4% Years 290. What pe; wing deduction? "Sena Of deduction wil be used in computing the amount of 2. 6% cam b. 40% nil Answer: D (orate tet ee jn PRRERY nas aquired tough aati arse (buble auction; onerous tensor) ie in reas pian vas acquired trough public of the following pro 10 Metra dedicn? | S O Nemavape Na who ded on Decenbe 1, 2201s sbet Property 1: Rest House in Tagaytay purchased in 2044 Propety 2. Commercial lot and be tax thereon had not been paid ding inherited from her mother in 2013 where the estate Property 3: Donation ftom a tiend in 2015 Propet 4: Property won in alotery six (6) months before death, Pusetit Perv? — Pepery? rated ye a Yes it o No Yes No ¢ Yes Yes ic a 4 Yes Yes i i Answer: B 1t, Pedro ctizen ofthe Philippines and resident of Makat Ciy. ied testate on May 10, 2018. Among tis goss estate were properties inherited fom his deceased father who died on Apri 4, 2016. What percentage of the deduction would be used in computing the amount of vanishing deduction? a. 60% ©. 20% b. 40% d. nil Answer: B © The property was inherted ftom the predecessor mare than three years before the present decedent's death. The vanishing deduction rate shall be Interval of Acquision and death of the present decedent Win one year 100% Within two years 80% Withi three years 60% Within four years 0% Within fv years 20% ‘2. Mr. Pim Manaw, resident decedent, married, died, leaving the following properties: Real and personal properties acquired during the marriage R 3,000,000 House and lot inherited from his father one year and 3 months before he 2,000,000 ded (far market value when inherited, P1,500,000) used as the decedent's family home Car purchased with cash received as gift from his mother during the year 500,000 he died Cash (inclusive of 500,000 received as inhertance from the father) 1,500,000‘Te folowing obigations and expenses were Cams against coniugalP operties i " 'p600,000) also made available: fonginal montgage was f° tax purposes deduction fr estate ronan rein eS b. P1,080,000 d. nil Answer: a INHERITANCE FROM THE FATHER: etme nt) 1,600,000 House ad tower aro soo Tout promos Less: Mortgage pid on morgage assumed (sno) Inaba etc Less. Proprtonal deduction (1,500/7,000 x P700,000) aR Final Basis 38 te 1 Vanishing deduction % Vanishing deduction - inheritance aes DONATION FROM THE MOTHER: Value fo fkeMitl Bass 500,000 Less. Proporional deduction (5007, 000 x P 700,000) 60,000), Final Basis wo 2 Vanishing deduction % — TOTAL VANISHING DEDUCTIONS —P1.530,000 423. Teh Pok died on November 20, 2020. Some of the properties he left are the following: Market Value Mode Date Date Date of Asset of Acquisifion Acquired Acquired Death Land Purchase 73:16 500,000 350,000 Car Donation 10-2-19 800,000 980,000 Other information: a) The gross estate of the decedent amounts to 3,000,000. b) The car was mortgaged for 50,000 when it was acquired and Teh Pok paid the same before he died ©) The allowable deductions totaled P325,000, which includes judicial expenses of ‘30,000 and funeral expenses of 150,000, The vanishing deduction is — a, 581,000 b. P571,000 c. P648,783 d. P637,617 oe Answer: B 492Estate Ti Solution Volo Ta Ca ess. Morigage pai Pe Ls rr tonmoad _" Less. Proportional deduction aM 75000000 x P 143,000" Final Basis — 820 x Vanishing deduction % ae Vanishing deduction - inher Lind ton -inhortancé—* ari 000" Pari. o00 c oeeees udicial expenses are no longer wea ge alowed a daduction ibd io doar be teeny AN Lon 08) i secdent edn 202 leaving propels he there 2 / years ago hi “i rect ate tine of his death (P6,500,000 at te tm of i aonane on np mote rs a a he present decedent). After inhenlance, the decedent motgagesthe money as y Scan a the ah pee a Other — inhis gross estate eroatel 000, losses, indebtedness, taxes and transfer for pubi space aounied 0 PSTD O00, Expensesineured, whch we nee 790 000 for funeral expenses and P400,00 for judicial cee te ees How much isthe vanishing deduction? a. P2,000,000 . P3,000,000 b. 2,750,000 . P3,120,000 Answer: D Solution: Value fo Take (lower valve) 6 500.000 TES Morgege pad on mortgage assumed (00,000 Inital Basis 4,000,000 Less: Proportional deduction 6,000/18,000 x P2,400,000 (800,000) Final Basis 5,200,000 x Vanishing deduction % 60% Vanishing deduction P3,120,000 +. indebledness, taxes and transfer for pubic use = 3,00 000-200, 000400, 00 = P2400, 00) rises were repeaied under the TRA cued in the computation OF i ing deduction purposes raced by be present decedent afte seller ab ignored for purposes of computing the (1 Alowable Losse ‘and judicial expense Funeral and judicial expe these expenditures shal be 0) proportional deduction fr vanish 2a The morgage afer inhoiance and Tine motgane aimed men neriod sh vanishing deduction. vo subsequent mrtgage has natin do withthe inhentance or donation, hence tho applicable vanishing deduction. shall be ignored in comput March 20, 2021 leaving 2 3 45, 2017 and a car do ding 2 land ross estate of P80, 000,000 inc 5, The 18, Ws. Nay Gok mated to im on April 20, 204 imerited from his uncle on October folowing data pertain to the two propertes : V upon death Unpaid Mortgage FMY upon receipt FM\/upon deat Land ne 7,000,000 18,000,000 12,500,000 Car 500,000 3,000,000 4,000,000 493Estate 7- * the unpaid mortgage onthe and before his death. The a Neto luding the unpaid mortgages p4; “3,000,000 and medical" °°00q) ‘The decedent was ableto pay 74°F : “ excl ses, indebtedness, taxes (' Expenses Pretuing aca funeral expenses ‘expenses of P6,000,000) Tranter to the Government, included above te Family home (included above) ae The alowable vanishing deductonisy a 455 499 000 PA 350000 d. P6,260,000 Answer: C ‘Solution: Value to Take -Land (lower value) nei ue e ‘mortgage ass J aor eae al 12,000,000 Less: Proportional deduction 12,000/80,000 x P7,000,000"* 1,050,000) Final Basis 10,950,000 x Vanishing deduction % 40% Vanishing deduction PA, 360,000 co “Corrected LITe + TFPU. LiTe- unadjusted 12,000,000 on 500,000 Unpaid mortgage on land Unpaid mortgage on the car 500,000 LESS. Funeral expenses (2,000,000) Medical expenses ADJUSTED LITe ADD: TFPU ADJUSTED LITe and TFPU™ ” 426. The taxable net estate based on the preceding number is: a. P2,174,000 c. P53,620,000 b. 40,000,000 d. P52,000,000 * Answer: C Gross estate 80,000,000 Adjusted LTe (4,000,000) Transfer for Public Use (3,000,000) Vanishing Deduction (4,380,000) Standard Deduction (6,000,000) Family Home (10,000,000) Taxable Net Estate 53,620,000 127. Vanishing deduction on properties received from gratuitous transfer before marriage shall be classified as Absolute Community Property Conjugal Partnership of Gains a Community Conjugal b. Exclusive Exclusive . Community Exclusive d Exclusive Conjugal 494slate Tag 4 Answer: C > The casitcation of © Pet toe mann Aca tnd one da on the classification of the property. ~ Commu Vanishing deduction on pro i. CPG Excuse, 128. perties: fie recet asst ete ived from Gratuitous transfer dur shall Aste Cont Poca ring marriage shall be : Community ‘Conjugal Parnershi of Gains Exclusive Conjugal ¢ Community Exclusive Exclusive Exdusive Cc Answer: B aaa 429, If the: decedent is married under the chargeable against? ‘Conjugal partnership of gains, vanishing deduction shall be ‘a. Exclusive Properties 2 Ete Bounce 6 cclusive Properties or C¢ d. Neither Exclusive nor Conjugal Properties a “Answer: A The following are 490 Te e 9 are required tobe listed as part ofthe gross estat, but are exempted from estate tax, ‘a. Share of the surviving spouse b. + Transfer for public use c. Exclusive property ofthe decedent : d. Amount received by heirs under RA 4917 Answer: C “Claim Against Insolvent Persons: {B1, Which statement is incorrect about claims against insolvent persons? a. They must be included inthe gross estate even ifuncolectble. They must be duly notarized as a rule. b. ‘¢._ The deduction is only the uncollectible portion. The insolvency of the debtor must be established Answer: B 192. Statement 1: In a claim against insolvent person the insolvency of the debtor must be proven and Siemon! a ead te that the aroun tobe incuded as part of he goss esate 090 aim against insolvent person i less than the full amount owed. a, Only statement 1 is correct b Only statement 2is correct Both statements are correct 4. Both statements are incorrect ‘Answer: A 495tile € Ge tate of Pedro: following data were taken from the est ‘aims against Juan (insolvent, 100,000, uly uncollectible Claims against Manuel (insolvent), 200,000, 50% coli Claims against a person who absconded, F300, Based on the data provided, how much should be deducted from Pedro's gross estate a. P600,000 c, P200,000 'b. P500,000 d. nil > a 2 natin po en nina © Aperson who absconded is a person who escaped or runaway, not an insolvent person 134. One of the following statements is incorrect. Claims against insolvent persons @. Should always be included in the gross estate. {entirely uncollectible, may be omitted in the computation for the net taxable estate b, ©. Can give rise to reduction even if the debtor had some properties. ¢. Can be a deduction even if secured by a mortgage. Answer: B 135. The gross estale of Juan includes P80,000 receivables which is duly notarized from debtor Pesto whose records show: Assets 100,000 Indebtedness to ‘© Government (unpaid taxes) 40,000 © Juan 80,000 © Other creditors 20,000 The deductible claims against insolvent person is a. P29,285 . P48,000 b. P32,000 d. P80,000 Answer: B Solution: Assets 100,000 Unpaid taxes fo tho government (40,000) Juan's receivable fom Pause (priority) Pedro Available assets 60,000 x uncollectble portion (100%-60%) = Divide by remaining abilities 100,000 —_Uncollectible Portion - Claim Against insolvent Pl Persons Se Collectible % of receivables 0% 496Estate Tae ees g dard Deduction stant following statements are cor, «8 2 educon nthe oman tS BMENG laa eacton under e TRAN LAW, ect need of substantiation, 000 shall be allowed as an additional deduction without The full amount of P5,000,000 b st Shall be allowed as ‘deduction for the benefit of the decedent. tandard deduction is not allowed None of the above to decedents who are nonresident aliens. Answer: C PRIOR T0 2018 Allowable only cizen and Deductible amount = P4, 000,000" estes For decedents who died ON OR AFTER JAN, © Allowable to al deceden ft oa 2 Arai 0a decedent (czens, sents and NRA) Citizen and Resident Decedent = NRA Decedent = P500 009." "092000 © Substantiation requirements = none st Atte ‘towing ‘tems are allowed as deductions against exclusive portion ofthe estate, except b. Claims against insolvent persons Share of the surviving spouse Family home “Answer: C © Share of the surviving spouse as well as special deductions are not deductible under “exclusive” nor ‘common” property ofthe decedent. Family Home (FH) BEGINNING JANUARY 1, 2018: For decedents who died on or after January 1, 2018 ‘Allowable only o atizen and resident decedents whd are married or head ofthe family. Deductible amount = Actual FIV of the FH but not fo exceed P10,000,000 If the FH is purely common, its FMV shal be divided by two but the deductible amount shall not exceed the limit of P10,000,000 If the FH is purely exclusive, the deductible amount shall be its entiro FMV but not exceed the limit of P10,000,000 © Ifthe FH is partly exclusive and partly common, the deductible amount shall be the total allowable common and exclusive FH as describe in the preceding paragraphs, but is total allowable amount ‘shail not exceed the limit of P10,000,000 ‘38. Which of the following statements is incorrect in connection with family home deduction? 3. Family home deduction shall be allowed only if such family home is situated in the Philippines The total value of the family home must be included as part of the gross estate of the decedent b © For purposes of availing family home deduction, a person may constitute only one family home d Family home deduction may not be lower than P10,000,000 * Answer: 497Estate % | ¢ 130. Adecedent died on Nov. 1, 2021 leant fan Nae aed ote olin — ° r woth Onn aM ge gaa he edt antl rhe Py vee PB 00.000, . P12,000,000 'b. P10,000,000 d. P19,000,000 4 Answer: A ; Alowable 4 - ¢P@.000,0007) + 4,000,000 = 8,000,000 cclusive 1140, Based on the preceding number, if the house Is also an exc PEN HoH ak deductible family home allowance? ‘a. P8,000,000 . P12,000,000 bb. P10,000,000 d. 19,000,000 Answer: B (Allowable FH = 8,000,000 + 490,000 = 12,000,000, max = 0,000,000) 141, in 2021, a married, nontesident citizen decedent has the folowing common properties, big, and expenses Real property, Pilpines 40,000,000 Real property, USA 0,000,000 Funeral expenses 700,000 Judicial expenses 800,000 indebtedness 3,000,000 Unpaid taxes 4,000,000 Unpaid medical expenses 2,000,000 ‘The real property in the Philippines includes the family home valued at P15,000,000. How much is the taxable net estate? a. P26,000,000 c. P30,500,000 'b. P28,000,000 d. P33,000,000 Answer: C Salon Gross Estate ‘eal prope, Philpines 40,000,000 Real property, USA 56,900,000 Total 90,000,000 Less: Indebtedness (3,000,000) Unpaid taxes (1,000,000) ,000) Net common estate ‘86,000,000 Less ‘Share of surviving spouse (86M/2) (43,000,000 eer (7,500,000) tar tion (5,000.0 Net taxable estate P30,500, me Use the following data for ‘the next three (3) question: ‘The following information were from the estate of a marted czen decedent who died on Januaty 221 — fe amily home 12,000,000 Domestic shares inherited 6 years ago during marriage 6,000,000 Bank deposit, representing dividend earned during marriage 1,000,000 Jewelry received as gift 8 years ago during marriage 1,000,000 498 442. Ur 143.7 144. ericExpenses. SS “Clam Estate Tae against the estat ct ee expences judicial 4,000,000 1,000,000 expenses mien 442, Under conjugal partnership of, 2. P13,000,000 °°" 98S. gross conjugal rope b. P12,000,000 ©. 8,000.09 rty is > Answer: A 4. 6,000,000 149, The % share ofthe survivin a. P6,000,000"" 9 Pauses ». Pé.500,000 § p00 Answer: B & P3.000,000 4144, The net taxable estate of the a. P600,000 aah b. P575,000 &. parson Answer: C 2 Gross Estate Exclusive Coniugal a Famly horn home 12,000,000 st (interest earned) me 1,000,000 1,000,000 7,000,000 43,000,000 20,000,000 (4000,000) (4,000,000) 77,000,000 P3.000.000 16.00.00 (6,000,000) (6,000,000) ‘Share of the surviving spouse (4500 Net taxable estate 'P500,000 Use the following data for the next four (4) questions: din 2021, leaving his estate in favor of his surviving Mr, Pim Musay, Filipino and married, die spouse. The following information were made available: the estate id property is supported by a the time of Mr. Musay's death tion is P15,000,000 while the held as a mortgage ding balance of the Real property in Quezon City, acquired during marriage. Sai barangay certification that the spouses resided in this property at The fair market value of this property as per latest tax declarat 2onal valuation as ofthe time death is P 20,000,000, Side pepe wa ina loan applied by the spouses. AS of the time of death, the 0 Mortgage payable amounted to 5,000,000 ring marriage, two and half years ago, 7 of his death is 8,000,000 while Mr, Musay dul 10,000,00 declaration as herited by eae previously taxed ata value ct P Real propert a y in Batangas, l tom his late father. The fair market value per tax the zonal valuation is P12,000,000 Said propel ‘when Mr. Musay inherited the Prope" 499= Esta te, 7 property it fore marriage) by .tyin Cavite, donated to Ms. Musey, 100805 200 Ue se) by hi a The fei are value as per atest tax declaration 3s of the time of Mr. Mu mat is P3,000,00 while the zonal valuation is P4,000,000. Other exclusive properties of Mr Musay P1,000,000; ; Other properties of Mr. and Mr proper incurred by the estate during the wake and burial of| ws 3,000,000. Funeral expenses i ns’ amounted to P1, 900,000. say 445, Compute item 34 (Gross Estate) of BIR form no, 1801 ‘a. P28,500,000 cc, P30,000,000 b. P32,500,000 d. P40,000,000 “Answer: D 446. Compute Schedule V (Ordinary deductions) of BIR Form no. 0801 a. P5,000,000 . P12,000,000 b. P10,250,000 + d. P8,500,000 «> Answer: B; (Total of the mortgage payable and vanishing deduction) 447. Compute item 40 (Net Taxable Estate) of BIR from no. 1801 a. P3,750,000 c. P29,750,000 b. P13,750,000 d. PO Answer: A 448. Compute item 20 (Estate Tax Payable) of BIR from no. 1801. a. P226,000 c. P1,785,000 b. P825,000 d. PO > Answer: A Solution Exclusive Common Total RPQC 26,000,000 RP Batangas 12,000,000 RP Cavite 4,000,000 Other exc! 4,000,000 Other common 3,000,000 GROSS ESTATE —p22,080000 P27,000,000” 000 ORDINARY DEDUCTIONS: ee Horlgoge Payee 5,000,000) (6,000,000) Vanishing deduction ee ee D rra000 NET ESTATE 7,750,000 22,000,000 _ F29,750.000 Share ofthe SS 11,000.00 oem (8,000,000) amily Home (P2042) 90,000) NET TAXABLE ESTATE no Estate tax rate ae ESTATE TAX DUEIPAYABLE meValue to takeinitial basis Proportional deduction 10/40 x P§,000,000 Final Basis x Vanishing Deduction 10,000,000 1,250,000) 8,750,000 P52 oe 250,000" Estate Lae