TAXATION ATTY. MACMOD, C.P.A.

Estate Tax

TAX TABLE
The estate tax shall be computed on the basis of the value of the net estate in accordance with following graduated rates
(effective Jan. 1, 1998)
If the net estate is:
Over But not over The tax shall be
- 200,000 0
P 200,000 500,000 5% of the excess over P 200,000
500,000 2,000,000 P 15,000 + 8% of the excess over 500,000
2,000,000 5,000,000 135,000 + 11% of the excess over 2,000,000
5,000,000 10,000,000 465,000 + 15% of the excess over 5,000,000
11,000,000 1,215,000 + 20% of the excess over 10,000,000

Basic Concepts: 15. _______________ portion of the estate reserved to

1. _______________ a mode of transferring and the compulsory heirs.
acquiring ownership, rights, interest and obligations
from a dead individual. Formula for computation of TNE:
2. _______________ refers to all property rights and 1.
obligations of a person which are not extinguished by Decedent single
his death and also those which accrued thereto since Gross estate P xx
the opening of succession; subject matter of Less: Allowable deductions xx
succession. Taxable net estate Pxx
3. _______________ a person whose property is Estate tax due (0%-20%) P xx
transmitted thru the succession whether or not he left
a will. 2.
4. _______________ a person whose property is Decedent married
transmitted thru succession with a will. Gross estate
5. _______________ a person called to the succession
Exclusive of the decedent P xx
either by a will or by provision of law.
Common property of the couple xx P xx
6. ______________ a person who inherits personal or
Allowable deductions
movable property by a will.
From exclusive property xx
7. _______________ a document wherein in his
From common property xx xx
handwriting an individual makes known his wishes
Net estate before share of xx
concerning the disposition of his estate after his death.
surviving spouse
8. _______________ the person to whom the property
Less: Share of surviving spouse xx
or property rights is transferred.
Net estate before special xx
9. _______________ a person appointed by a testator to
deductions
carry out the provisions of the will.
Less: Deduction for family
10. _______________ a person appointed by the court in
home/medical exp./s.deductions xx
the absence of an executor.
Taxable net estate P xx
11. _______________ one carried out according to the
Estate tax due (0%-20%) P xx
wishes of the testator to express in a will executed in a
*Computation of the share of surviving spouse
form prescribed by the law (voluntary).
Gross common property of the H & W P xx
12. _______________ one that takes place by operation
Less: Deductions from common
of law (involuntary).
property xx
13. _______________ succession affected party by will
Net xx
and partly by operation of law.
Divided by 2
14. _______________ tax imposed upon gratuitous
Share of the surviving spouse P xx
transfer of properties.

Your mind is a magnet. Continue to dwell on what you want with a strong belief and you will achieve it.
- A. Matthews

3. Limitation B: (by total, used if 2 or more foreign

Estate tax due P xx countries
*Deduct estate tax credit for the tax paid abroad xx
Estate tax still due P xx Are involved together with limitation A)
*Formula for estate tax credit: Total actual E.T. paid to all FCs P xx
Under Limitation (used it only 1 foreign country is Or TNE, all FCs/TNE, W x E.T. due in Phil. xx
involved: By country limitation.) Allowable tax credit (whichever is lower) P xx

Actual E.T. paid to FC P xx Note: If there are 2 or more FCs both limitations (A &B)
Or TNE,FC/TNE, W x E.T. due in the Phil. xx should be used, then get whichever is lower between the
Allowable tax credit (whichever is lower) two as the final allowable tax credit.
For the foreign country P xx
EXEMPTIONS AND EXCLUSIONS FROM THE GROSS
ESTATE 6. What is the additional requirement if the gross estate
exceeds P2,000.000?
A. Under Sections 85 & 86, NIRC
The estate tax return shall be accompanied by a
1. Capital or exclusive property of the surviving
statement showing:
spouse.
a. Itemized assets of the decedent with their
2. Properties outside the Philippines of a Non-
corresponding gross value at the time of his death,
Resident Alien decedent
or in case of non-resident alien decedent, that part
3. Intangible personal property in the Philippines of a
of his gross estate in the Philippines;
Non-Resident alien under the Reciprocity Law.
b. Itemized deductions from the gross estate allowed
under Section 86;
B. Under Section 87, NIRC
c. The amount of tax due whether paid or still due
1. The merger of usufruct in the owner of the naked
and outstanding duly certified by a CPA.
title.
2. The transmission or delivery of the inheritance or
7. What is the time for filing of the estate tax return? It is
legacy by the fiduciary heir or legatee to the
extendable?
fideiconussary.
It shall be filed within six (6) months after the
3. The transmission from the first heir or legatee in
decedents death. In meritorious cases, the BIR
favor of another beneficiary in accordance with the
Commissioner may give a reasonable extension of the
desire of the predecessor-similar to transfers
time, not exceeding 30 days.
passing S.P.A.
4. All bequests, devises, legacies, or transfers to
social welfare, cultural, charitable institutions, no 8. Where and to whom it should be filed?
part or the net income of which insures to the The return shall be filed with the RDO, collection agent
benefit of any individual provided that not more or duly authorized treasurer of the
than 30% of the said bequests, devises, legacies, municipality (or city) in which the decedent was
or transfers shall be used by each institution for domiciled at the time of his death, or if there be no
administrative purposes: legal resident in the Philippines, the with the Office of
the BIR Commissioner.
C. Under Special Laws
9. When should the estate tax be paid?
1. Benefits from GSIS by reason of Death
At the time the return is filed by the executor,
2. Benefits from SSS by reason of Death
administrator or the heirs. (Pay as you file system)
3. Benefits from Philippines and US government for
war damages 10. May the time for payment be extended?
4. Benefits from US Veteran Administration Yes, in meritorious cases, if payment of such tax
5. Retirement benefits of officials/employees of should cause undue hardship upon the estate or any of
private firms his heirs, the BIR Commissioner may extend the time
6. Life insurance proceeds on insurance policy upon as follows:
his own life, where the beneficiary is a third
a. If the estate is settled through the courts
person, and the designation is irrevocable
(juridically) 5years.
7. Life insurance proceeds on insurance policy (group
b. If the estate is settled through extra-juridically 2
insurance) taken out by the employer on the
years.
employees life regardless of who is the beneficiary
and the designation.
11. Who is liable to pay the estate tax?
It shall be paid by the executor or administrator before
REVIEW ON ADMINISTRATIVE PROVISIONS
delivery to any beneficiary of his distributive share of
ESTATE TAX
the estate. Such beneficiary shall be subsidiary liable
1. What is a notice of death?
for the payment of such portion estate tax as his
It is a written notice from the executor, administrator,
distributive share bears to the value of the total net
or any of the legal heirs, as the case may be,
estate.
informing the Commissioner of the Internal Revenue
about the decedents death. 12. What if there is no executor or administrator appointed
or qualified?
2. When should the notice of death be filed?
Any person in actual or constructive possession of any
Within two (2) months after the decedents death or
property of the decedent.
within 2 months after the executor or
administrator shall have qualified. 13. Is the tax a personal liability of the administrator or
executor?
3. Is it required in all cases of death?
Yes, under Section 85 of NIRC
No, only where the gross value of the estate exceeds
P20,000 14. May he be discharged from such personal liability?
How?
4. Is an estate tax return required to be filed in all cases?
Yes, by making a written application to the BIR
No, only where the gross value of the estate exceeds
Commissioner for the determination of the estate tax
P200,000
and his discharge from personal liability. He shall
5. How should the return be filed? What information thereafter be notified by the BIR Commissioner and
should be contained? upon payment of the amount of which he is notified,
It shall be filed under oath and in duplicate. It should he shall be discharged from such personal liability and
show the following: shall be entitled to a receipt or writing showing such
a. The value of the gross estate at the time of the discharge.
decedents death, or in case of non-resident alien
15. May a judge allow the execution or administrator to
decedent, that part of his gross estate in the
deliver a distributive share to an heir at anytime?
Philippines;
No, unless the executor or administrator can show a
b. The allowable deductions under Section 86;
certification from the BIR that the estate tax has been
c. Such other information as may be necessary to
paid.
establish the correct tax due.
16. What is the duty of a bank upon knowing of the death Expenses of internment P40,000
of a person who maintained a joint account with Cost of the burial lot (paid paid by
another? friends & relatives 20,000
It shall not allow any withdrawal by a surviving Fees for performance of rites incident to
depositor from the said joint account unless the BIR internment 10,000
Commissioner has certified that the estate tax has Mourning clothing of widow & unmarried
been paid. However, the administrator of the estate or minor children 5,000
any one of the heirs of the decedent may w/draw Expenses during the wake before burial
without such certificate an amount not exceeding (paid by uncle, 25%) 20,000
P20,000.00 upon authorization by the BIR Obituary notice 3,000
Commissioner. Card of thanks 2,000
EXERCISES/PROBLEMS
The allowable funeral expenses assuming the decedents
A. State the amount of allowable deductions from the gross estate is:
gross estate in each of the following: a. P2,000,000
1. _______________ Gross estate of P8,000,000 and b. P1,500,000
funeral expenses of P250, 000.
B. Determine whether the following properties are
2. _______________ Unpaid taxes of the decedent P3M, conjugal/community or exclusive:
25% of w/c accrued after death already. ACP CPG
3. _______________ Receivable of P75,000 from an 1. Property acquired before
insolvent debtor whose ratio of assets to liabilities is marriage
1:3 2. Property acquired during
marriage
4. _______________ Hospitalization expenses until a. By onerous Title
death: P3,000,000, 50% incurred 1 yr. Prior to death b. By gratuitous Title
but only of which is supported by receipts.
3. Income from 2-a earned
5. _______________ Expenses for the probate of a will during marriage
including P10,000 facilitation fee for a court 4. Income from 2-b earned
personnel, P100,000: amount paid to broker to convert during marriage
some property in the estate to cash as authorized by 5. Other income of the
the court P50,000. couple earned during
marriage
6. ______________ P75,000 indebtedness with interest
6. Property acquired during
at 20% p.a. contracted 3months before death, not
marriage thru exchange:
notarized and a deed of mortgage P20,000, contracted
a. Using exclusive prop.
6 months before death at 24% p.a.
b. Using common
7. ______________ P100,000 note payable notarized property
earning 18% p.a. dated September 30, 2014. 7. Jewelry acquired during
Decedent died March 15, 2015. marriage
a. Using exclusive funds
8. ______________ A conjugal family house with FMV of
P900,000 and exclusive family lot worth P500,00 b. Using common funds
owned by the decedent. 8. Property for personal &
exclusive use of either
9. ______________ Loss by fire of building worth P1M 5 husband or wife
months after decedents death, 75% compensated by
insurance. Estate was settled in the 6th month.
C. Multiple Choice
10. _____________ Funeral expenses of a NRA decedent 1. It refers to a mode of transferring & acquiring
in the Phil. P85,000 gross estate worth P2,000.000 properties left by the decedent.
40% from Philippines. a. Estate transfer c. Donation
11. _____________ Transfer for public purposes made b. Succession d. Execution of a will
inter vivos, P1M.
2. The property, rights & obligations of a person which
12. _____________ A land worth P1M when inherited 4 are not extinguished by his death & those which have
years ago by the decedent from his father with accrued thereto since the opening of succession.
mortgage of P200,000, 60% of which was paid by the a. Inheritance c. Estate
decedent before he died . FMV of land upon b. Capital d. Devisee
deathP1,500,000. Gross estate is P8M and deductions
reached P750,000 40% of which represents ELIT & 3. The estate tax accrues from the moment of:
TPP. Compute for VD only. a. The fixing of notice of death
b. Expiration of a months after death
13. _____________ Loss of car by theft, occurring 8
c. The death of the decedent
months after the decedent death, value of car
d. The filing of estate tax return
P300,000, 60% to be paid by insurance.
14. _____________ Transfer for public purposes donated
by the decedent to Manila City Hall (shown in the will)
P200,000. 4. The gift tax paid on a donation mortis causa, if any:
15. _____________ Unpaid mortgage of P200,000 on a a. Exempts the property from estate tax.
P1,1000,000 house shown in the gross estate net of b. Has no effect since the gift will be subject to
the P200,000 mortgage. another gift tax.
c. Shall form as a tax credit to be deducted from the
16. _____________ The decedents administrator claims estate tax due.
the following funeral expenses: d. Is invalid & the tax will not be credited at all.
5. Which shall not form part of the gross estate of a
decedent:
a. Intangible personal property of non-resident alien
decedent without reciprocity law
b. Revocable transfer
c. Transfer passing special power of appointment
d. Life insurance where the executor is the
beneficiary & it is irrevocable
6. All of the following are considered intangible in the
Philippines, except:
a. Franchise which must be exercised in the Phil.
b. Shares obligations or bonds which issued by any
corporation or sociedad anonym organized or
constituted in the Philippines in accordance with it
laws.
c. Shares, obligations or bonds by any foreign
corporation 75%.of the business of which is
located in the Philippines.
d. Shares, obligations of bonds issued by any foreign
corporation of such shares, obligations or bonds
have acquired a business situs in the Philippines.
e. Shares or rights in any partnership, business or
industry established in the Philippines.
7. A person who inherits personal property thru a will:
a. Devisee c. Heir
b. Legatee d. Successor
8. A person who inherits real property thru a will:
a. Devisee c. Heir
b. Legatee d. Successor
9. Succession wherein the decedent did not leave any
will:
a. Voluntary succession c. Mixed succession
b. Legal succession d. Testamentary succession
10. Which statement is false about succession:
a. The successor inherits all the transmissible
property of a decedent including his liabilities.
b. The successor can be made liable for the
obligations of the decedent beyond the value of the
asset he received.
c. In succession, fruits and credits maturing after the
death of the decedent pass to the heirs even if
they were not subjected to estate tax.
d. In succession, the successor can refuse the
inheritance.
11. One of statement is false:
a. Estate tax is an excise tax.
b. Estate tax is transfer tax on donation mortis causa.
c. The object of estate tax is to tax the transfer of the
property from the dead to the living.
d. Estate tax and inheritance tax are the same.
12. Which statement is wrong:
a. Claims against insolvent person should be included
in the gross estate even if uncollectible.
b. Transfer passing under special power of
appointment is excluded from the gross estate.
c. Revocable transfers are includible whether or not
the right to revoke is exercised.
d. Transfer contemplation of death for adequate
consideration is still includible in the gross estate.
13. Which statement is incorrect about funeral expenses
allowed:
a. The amount allowed is 5% of the gross estate or
the actual expenses which ever is lower.
b. The actual expenses must be paid from the estate
or chargeable to it.
c. The allowed deduction can never be more than the
actual expenses paid.
d. The expenses necessary for burial even if paid by
friends are also allowed as deduction.
14. Which statement is incorrect about claims against
insolvent persons?
a. They must be included in the gross estate even if
uncollectible.
b. They must be duly notarized.
c. The deduction is only the uncollectible portion.
d. The insolvency of the debtor must be established.
15. One of the following is incorrect:
a. Taxes to be deductible must accrue before the
decedents death.
b. Losses must occur also before the decedents
death to be deductible.
c. Medical Expenses must be incurred within 1 year
prior to the decedents death.
d. Transfer for public purposes order to be deducted
must be mortis causa in character.
16. Which statement is false about vanishing deduction:
a. It pertains to a property presently found in the
gross estate.
b. The property must be previously subjected to a
transfer tax or income tax.
c. The property was received by the decedent within
5 years prior to his death.
d. The property must be located in the Philippines.
17. A donation inter vivos but due to thought of death is;
a. Subject to donors tax
b. Subject to estate tax if for inadequate
consideration
c. Subject to estate tax a bonafide transfer
d. Subject to inheritance tax
18. In filing the estate tax return , a CPA certificate is
required when:
a. Gross estate exceeds P2,000,000
b. Gross estate reaches P20,000
c. Gross estate exceeds P200,000
d. Gross estate reaches P2,000,000
19. A died leaving a house and lot to B March 31, 2014
which was questioned by C and it is under litigation but
the parties have stated an extra-judicial settlement.
The last day for filing the estate tax return is
a. April 30, 2015 c. September 30, 2014
b. April 30, 2018 d. October 30, 2014
20. The last day for the payment of estate tax may be
extended, until;
a. March 21, 2028 c. September 30, 2020
b. September 30, 2016 d. April 30, 2018
21. The taxpayer in estate tax is:
a. The decedent
b. The estate as a juridical entity
c. The heirs or succession
d. The administrator or executor
22. The payment of estate tax is a personal liability of
a. The heirs or successors
b. The administrator in testamentary succession
c. The executor in voluntary succession
d. The estate itself
23. 1st statement: The court may authorize the executor or
administrator to distribute the estate if in its sound
discretion it believes that the heir badly needs his
share.
2nd statement: The administrator or any of the heirs
may however upon authorization of BIR withdraw from
the decedents bank up to P50,000 even without
required certification that the estate tax has been paid.
a. True, True c. True, False
b. False, False d. False, True
24. 1st statement: A died giving B power to appoint a of death, the companys outstanding shares were
person who will inherit As house and lot. B, however 10,000 shares. Its retained earnings was P2,000,000,
can only choose among C, D and F. B decided to par value per share was P50/share. The gross estate
transfer the property to C, in Bs will when he was old should show the said shares at:
already. The transfer from B to C is subject to estate a. Still at P75,000 c. P200,000
tax. b. P250,000 d. P0
2nd statement: During As lifetime, he decided to give
B as gift his (A) car subject to the condition that if B Questions 32 & 33 are based in the following information:
does not become a CPA within 3 years. A shall revoke Building, USA P5,000,000
the transfer. In the second year however, A died. The House & lot in Bulacan (500 sq. meters)
car should form part of As gross estate. zonal value is P10,000 per square
a. True, True c. True, False meter 4,500,000
b. False, False d. False, True Life insurance proceeds, beneficiary is the
wife, the administratix, irrevocable 500,000
25. A died leaving a farm land, In his will, he transferred Life insurance proceeds with another
the ownership thereof to B but subject to the company beneficiary, his nephew, 200,000
condition that C will have the right to use the land for irrevocable
a period of ten years (Usufruct) in the seventh year, Claims against a debtor who died a year
however, C died and Cs will be surrendered his over ago (50% collectible) 50,000
the land to B. Death benefits from US Veteran
a. The transfer is subject to donors tax Administration 100,000
b. The transfer is subject to estate tax Death benefits from SSS 40,000
c. The transfer is both an inclusion and exclusion Paraphernal property of his surviving wife 2,000,000
from the gross estate
d. The above is a tax-exempt transfer. He also transferred mortis causa the following:
FMW- FMV - Death
26. The notice of death must be filed when: S Price Transfer
a. Gross estate exceeds P200,000 Car, Mla. P 500,000 P1,000,000 P 800,000
b. Gross estate exceeds P20,000 Land, Mla. 1,500,000 2,000,000 1,000.000
c. Gross estate reaches P200,000 Land, USA 2,000,000 1,800,000 3,000,000
d. Gross estate reaches P2,000,000
32. If the decedent is a Filipino citizen, his gross estate is:
27. One of the following is not an exemption or exclusion
a. P10,850,000 c. P10,950,000
from the gross estate:
b. P12,900,000 d. P11,050,000
a. Capital or exclusive of the surviving spouse
b. Properties outside the Philippines of non-resident
33. If the decedent is a non-resident alien and his country
Chinese decedent
does not impose transfer tax on any intangible
c. Shares of stocks of San Miguel Corporation of a
properties left by a Filipino decedent, his gross estate
non-resident Mexican.
is:
d. The merger of usufruct in the owner of the naked
a. P5,350,000 c. P6,500,000
title
b. P5,300,000 d. P6,000,000
Questions 28 through 31 are based on the following 34. The gross estate of a non-resident alien is P2,000,000,
information: 75% of which is from abroad. The actual funeral
A decedent left the following properties: expenses totaled to P80,000, of which was paid by
Land in Italy (with P1M unpaid mortgage) P2,000,000
his employer. The deductible funeral expense is:
Land in Davao City, Phil. (zonal value
a. P25,000 c. P6,250
750,000) 500,000
Franchise in USA 100,000
b. P20,000 d. P80,000
Receivable from debtor in Phil. 50,000 35. Based on the preceding number (the same world G.E.)
Receivable from debtor in USA 100,000 but the decedent is a non-resident citizen, the
Bank deposit in Phil. 20,000
deductible funeral expense is:
Bank deposit in USA 80,000
a. P25,000 c. P5,000
Shares of stocks of PLDT, Phil. 75,000
Shares of stock of ABC, foreign corporation 125,000
b. P60,000 d. P80,000
75% of the business in the Phil.
36. 1st statement: A note payable contracted 11 yrs. ago
Other personal properties 300,000
is a deduction from the gross estate if notarized.
2nd Statement: To be deductible, medical expenses
28. If the decedent is a non-resident citizen his gross
must be paid within one year period before death.
estate is:
a. True, True c. True, False
a. P3,650,00 c. P2,500,000
b. False, False d. False, True
b. P3,600,000 d. P2,650,000
37. 1st Statement: A decedent OFW cannot claim Family
Home deduction.
29. If the decedent is non-resident alien his gross estate
2nd Statement: The liability of the heirs for estate tax
is:
is solidary.
a. P1,195,000 c. P1,250,000
a. True, True c. True, False
b. P945,000 d. P1,070,000
b. False, False d. False, True
30. If in the preceding number, reciprocity law can be 38. Purobuto, non-resident Japanese, died leaving the
applied the gross estate is: following:
a. P1,050,000 c. P1,250,000
b. P945,000 d. P1,070,000 Exclusive properties, Philippines P 560,000
Conjugal properties, Philippines 420,000
31. Based on the original problem but assuming the PLDT Conjugal properties, Abroad 1,820,000
shares of stocks (PLDT) are not listed in the Local Deductions claimed:
Stock Exchange,& there are 1,000 shares at the time Funeral expenses 100,000
 Judicial expenses 100,500 Farm lot 825,000
Unpaid expenses 150,500 Claim against an insolvent debtor 225,000
Losses: occurring 3 mos. After death Transfer in contemplation of death
due to fire 120,000 (gratuitous) 1,500,000
Donation mortis causa to Makati City Transfer passing special power of
Hall 180,000 appointment 75,000
Family Home (inc. above), located Deduction claimed:
abroad 1,000,000 Funeral expenses 575,000
Standard deduction 1,000,000 Judicial expenses 67,500
Donation mortis causa to Quezon City
The taxable net estate is: government 150,000
a. P210,000 c. P1,900,000 Unpaid mortgage on the farm lot 75,000
b. P516,500 d. P2,100,000 Medical expenses (included in the funeral
expense incurred within the 1 year
38-a. If decedent is a Filipino citizen, TNE is __________
period with receipts) 225,000
39. JR, administrator claims the following funeral expenses
The farm lot was inherited 5 years by the decedent
for a decedent:
before his death with a value then of P575,000 and a
Expenses of interment (paid by friend) P 60,000
mortgage indebtedness of P150,000.
Cost of burial & tombstone (1/2 paid 42,000
The total deduction from the gross estate is:
by relatives)
a. P1,867,500 c. P2,092,500
Other funeral parlor expenses 36,000
b. P867,500 d. P3,092,500
Expenses during the wake
Before burial 13,000 44. Based on the preceding number, the taxable net estate
Obituary notice 7,500 assuming the farm was inherited 5 yrs ago:
Card of thanks 3,500 a. P3,982,500 c. P2,757,500
Mourning clothing of friends 15,000 b. P4,982,500 d. P2,672,329
Mourning clothing of immediate family 5,000
members 45. Mr Kiliti, Filipino, married died leaving the following
estate:
If the gross estate is P1,000,000 the allowable funeral Car acquired before marriage by Mr.
expense is: Kiliti P 300,000
a. P75,000 c. P174,500 Car acquired before marriage by Mrs.
b. P82,500 d. P 50,000 Kiliti 450,000
House and lot acquired during marriage 1,500,000
40. Based on Number 39 but the gross estate is Jewelries of Mrs. kiliti 100,000
P2,500,000 the allowable funeral expenses is: Personal properties inherited by:
a. P75,000 c. P125,000 Mr. Kiliti during marriage 250,000
b. P82,500 d. P93.500 Benefits from SSS 50,000
41. Mr. Nabigla died on March 20, 2011 leaving a gross Retirement benefits from a private firm 150,000
estate of P7,800,000 including a land inherited from Proceeds of group insurance taken by his
his uncle on October 15, 2007 and a car donated to employer 75,000
him on April 20, 2005. The following data pertain to Land inherited by the wife during
the two properties: marriage 1,000,000
Unpaid FMV upon FMV upon Income earned from the land inherited
Mortgage receipt death by wife(25% of which was earned after
Land P100,000 P1,800,000 P1,250,000 death) 200,000
Car 50,000 300,000 400,000 The gross estate under conjugal partnership of gain is:
a. P2,600,000 c. P1,950,000
The decedent was able to pay of the unpaid b. P3,600,000 d. P2,200,000
mortgage on the land before his death. The deductions
are: 46. Under the same problem, the gross estate under
Expenses, losses, indebtedness, taxes P1,200,000 absolute community of property is:
(excluding the unpaid mortgages a. P2,600,000 c. P1,950,000
above but including actual funeral b. P3,600,000 d. P2,500,000
expenses of P300,000 and medical 47. Mr. Malungkot died intestate on September 30, 2014.
expenses of P600,000) He is survived by his wife. An inventory of the estate
Standard Deductions 1,500,000 showed the following:
Transfer to the Govt, included above 300,000 FMV tax
Death Benefits from Employer 200,000 declaration Zonal Value
Family home (included above) 2,000,000 Exclusive estate of Mr. M
The allowable vanishing deduction is: Commercial land 700 sq. m. P 850,000 P 900/sq. m.
a. P213,000 c. P426,000 Residential land 900 sq. m. 580,000 1,000/sq. m.
b. P626,000 d. P440,625 Conjugal estate:
Farm land, 800, sq. m. 1,300,000 700/sq. m.
42. The taxable net estate based on the preceding number Residential house 750,000
is: Car, Toyota 200,000
a. P4,056,250 c. P3,974,000 Other property 280,000
b. P5,555,300 d. P4,175,000 Death benefits (RA 4917) 200,000

43. Mr. Dinakahinga, head of family died on January 15, On January 1, 2014, the commercial land was mortgaged
2010, leaving the following properties and obligations: at the Phil. National Bank for P200,000 at 24% per annum.
Cash in bank, 50%, donated mortis causa The residential house (certified family home is mortgaged
to Natl Govt;50-% to Q.C. govt P 300,000 with unpaid balance of P180,000 as of the date of death).
House and lot in Makati, F. Home 1,500,000 The 900 sq. m. residential land is the family homes lot.
Personal properties 1,500,000 Actual funeral expenses amounted to P250,000 but of
which is non-deductible. Medical expenses reached 55. The net taxable estate is:
P600,000 but only was incurred with in 1 yr before a. P 1,250,000 c. P 1,500,000
death. Judicial expenses reached P150,000. b. P 2,500,000 d. P 1,000,000
The gross estate is:
Juan Namaalam, Filipino, married, died on January 15,
a. P4,280,000 c. P2,730,000
2011. Assets declared and deductions claimed by the
b. P4,480,000 d. P4,160,000
estate are as follows:
Conjugal Assets:
48. The total deductions excluding share of surviving
Family Home (house) , P800,000
spouse and special deduction is:
Manila
a. P655,000 c. P855,000
Fishpond, Bulacan 1,000,000
b. P891,000 d. P1,016,000
Apartment, Makati 1,600,000
Shares of stock, Happy Co., 600,000
49. The deduction for family home is:
domestic
a. P1,000,000 c. P900,000
Shares of stock, ABC, Inc., a
b. 950,000 d. P750,000
foreign corporation60% 400,000
of the business is in the
50. The taxable net estate is:
Phil.
a. P401,500 c. P201,500
Cash in Bank 100,000
b. P326,500 d. P101,500
Exclusive of Decedent:
51. Assuming the commercial land was received as
donation by the decedent from his uncle 4 years
Family Home (lot), Manila P500,000
ago, the TNE is __________
(Received as donation to
52. Mr. Bombo, Filipino died on April 10, 2015 with the
him by a relative, 3
following data:
Estate tax
years ago with a
Gross Estate Deduction paid value then of P 300,000)
Philippines P 1,375,000 P 75,000 P -
Foreign country A 300,000 150,000 3,7500
Deductions claimed:
Foreign country B 450,000 525,000 -
Foreign country C 600,000 225,000 18,0000 Funeral expenses P300,000
Family home deduction 1,300,000
The estate tax due still due is: Loss (Decedent has a
a. P13,500 c. P14,000 receivable from Mr. 500,000
b. P9,000 d. P13,250 KHO, a solvent debtor
who absconded)
Mr. Agawbuhay married under the regime of absolute Liability (This represents
community of property. Survived by his wife, left behind unpaid subscription
the following properties and charges upon his estate: shares of Kulapu Co. 200,000
acquired on February
Real property acquired during the marriage P 3,000,000 10,2009)
Family Home, built using community fund 1,000,000 Standard deduction
Real property received as a gift during the (Unitemized and 1,000,000
Marriage 2,000,000 undocumented)
Lot where family home was built, inherited Death benefits under RA 300,000
During the marriage 400,000 4917
Funeral expenses 300,000 Accounts payable 200,000
Taxes and Losses 1,300,000 Judicial expense 100,000
Medical Expenses, with receipt, incurred
within 1 year period 1,000,000 56. The gross estate of Juan Namaalam is:
Unpaid mortgage, exclusive property 250,000 a. P5,000,000 c. P6,000,000
b. P4,600,000 d. P5,500,000
53. The allowed family home deduction is:
a. P1,000,000 c. P900,000 57. The total allowable deductions from the gross estate
b. P1,400,000 d. P700,000 excluding share of surviving spouse
a. P1,165,000 c. P2,965,000
54. The deduction for share of the surviving spouse is: b. P2,465,000 d. P2,865,000
a. P 2,500,000 c. P 4,000,000
b. P 1,250,000 d. P 1,500,000

The devil smiles when we make plans.

He laughs when we get too busy.
But he trembles when we pray.

- Corrie Ten Boom

Do not worry about ANYTHING,

But in all your prayers, ask God for what you need;
Always asking HIM with a THANKFUL HEART. (Quoted)