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Module 10 - Cases On Co-Ownership, Estates, and Trusts

The document contains 6 cases on co-ownership, estates, and trusts. Case 1 asks how much income tax is due on an estate that earned P1,200,000 in gross income and incurred P600,000 in expenses, with P200,000 distributed to the heir. Case 2 establishes a trust earning P1,000,000 and asks the taxable income of the trust and benefactor, who earned P1,500,000 in compensation and P1,000,000 in business income. Case 3 asks the taxable income of the benefactor given the information in Case 2. Case 4 establishes a trust earning P40,000,000 that distributed P10

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538 views7 pages

Module 10 - Cases On Co-Ownership, Estates, and Trusts

The document contains 6 cases on co-ownership, estates, and trusts. Case 1 asks how much income tax is due on an estate that earned P1,200,000 in gross income and incurred P600,000 in expenses, with P200,000 distributed to the heir. Case 2 establishes a trust earning P1,000,000 and asks the taxable income of the trust and benefactor, who earned P1,500,000 in compensation and P1,000,000 in business income. Case 3 asks the taxable income of the benefactor given the information in Case 2. Case 4 establishes a trust earning P40,000,000 that distributed P10

Uploaded by

Rizzalyn Arriesgado
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Module 10 .

Cases on
Co-ownership, Estates, and Trusts
Case 1. Namahinga Nah died leaving an estate worth P10,000,000.
The estate is under administration. In 2020, the properties in the
estate earned a gross income of P1,200,000 and the estate incurred
expenses of P600,000. Felipe, the only heir, received P200,000 from
the income of the estate (refer to Module 9 for the formula).

How much is the income tax due on the estate?


Case 2. Mr. Nag-aalangan created a trust naming his eldest son, Kadudaduda
as beneficiary. If the eldest son could not abide with the terms provided in the
trust instrument, Mr. Nag-aalangan has the power to cancel the trust
agreement.

For the current taxable year, the trust earned a net income of P1,000,000. On
the other hand, Mr. Nag-aalangan earned a compensation income of
P1,500,000 and business income of P1,000,000.

The taxable income of the trust is _________________

Case 3. Based on the above data, how much is the taxable income of Mr.
Nag-aalangan? ________________
Case 4. On January 1, 2022, Pedro established a trust fund for the
benefit of his daughter, Ana. Pedro appointed Mr. Abugado as the
trustee. The property transferred to the trust is a piece of land with a
dormitory earning rental income. During the year, the trust earned
P40,000,000 revenues and incurred expenses of P10,000,000. Out of
the trust’s income, Mr. Abugado transferred P10,000,000 to Ana.
During the year, Ana earned a compensation income of P2,500,000.
How much is the taxable income of the trust?

Case 5. How much is taxable income of Ana?


Case 6. In 2020, Bowbong Jr. created two (2) trusts for his minor son,
Xandrow. During the year, the two trusts earned net income as
follows:
Trust 1 P4,000,000
Trust 2 6,000,000

How much is the total income tax due of the two Trusts?

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