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    Estate Tax Sample Computation

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    Emir Mendoza
    The document details the estate of Emir-Deogene V. Mendoza which includes conjugal, exclusive, and family home properties. The conjugal properties total PHP 14 million excluding the family home. Exclusive properties include real estate and a watch totaling PHP 5.5 million. Total gross estate is PHP 39.5 million. Ordinary and special deductions are taken which results in a net taxable estate of PHP 3.6 million. The tax due is PHP 218,947.

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    Estate Tax Sample Computation

    Uploaded by

    Emir Mendoza
    10K views3 pages
    The document details the estate of Emir-Deogene V. Mendoza which includes conjugal, exclusive, and family home properties. The conjugal properties total PHP 14 million excluding the family home. Exclusive properties include real estate and a watch totaling PHP 5.5 million. Total gross estate is PHP 39.5 million. Ordinary and special deductions are taken which results in a net taxable estate of PHP 3.6 million. The tax due is PHP 218,947.

    Original Description:

    Problem based on the TRAIN Law

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    The document details the estate of Emir-Deogene V. Mendoza which includes conjugal, exclusive, and family home properties. The conjugal properties total PHP 14 million excluding the family home. Exclusive properties include real estate and a watch totaling PHP 5.5 million. Total gross estate is PHP 39.5 million. Ordinary and special deductions are taken which results in a net taxable estate of PHP 3.6 million. The tax due is PHP 218,947.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    10K views3 pages

    Estate Tax Sample Computation

    Uploaded by

    Emir Mendoza
    The document details the estate of Emir-Deogene V. Mendoza which includes conjugal, exclusive, and family home properties. The conjugal properties total PHP 14 million excluding the family home. Exclusive properties include real estate and a watch totaling PHP 5.5 million. Total gross estate is PHP 39.5 million. Ordinary and special deductions are taken which results in a net taxable estate of PHP 3.6 million. The tax due is PHP 218,947.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 3

    Mendoza, Emir-Deogene V.

    Exclusive Conjugal Total

    Conjugal Properties
    Conjugal real properties 4,000,000.00 4,000,000.00
    (excluding family home)
    Conjugal personal properties
    (Cash) 10,000,000.00 10,000,000.00

    Total Conjugal Properties


    (excluding family home) 14,000,000.00 14,000,000.00

    Exclusive Properties
    Exclusive real properties
    Real Property 1 500,000.00 500,000.00
    Real Property 2 1,250,000.00 1,250,000.00
    Real Property 3 1,750,000.00 1,750,000.00
    Total exclusive real properties 3,500,000.00

    Exclusive personal
    properties (watch) 2,000,000.00 2,000,000.00
    Total Exclusive Properties 5,500,000.00 5,500,000.00

    House and lot (Family Home) 20,000,000.00 20,000,000.00

    Gross Estate 5,500,000.00 34,000,000.00 39,500,000.00

    Less:
    Ordinary deductions
    Conjugal ordinary deductions
    Claims against the estate
    during the marriage (500,000.00) (500,000.00)
    Transfers for public use (100,000.00) (100,000.00)

    Exclusive deductions (750,000.00) (750,000.00)


    Property previously taxed
    (Vanishing deduction)
    Real property 1 (482,855.00) (482,855.00)
    Real property 2 (965,845.00) (965,845.00)
    Real property 3 (965,845.00) (965,845.00)
    Watch (386,338.00) (386,338.00)
    Total vanishing deduction (2,800,883.00) (2,800,883.00)

    Total ordinary deductions (3,550,883.00) (600,000.00) (4,150,883.00)

    ESTATE AFTER DEDUCTIONS 1,949,117.00 33,400,000.00 35,349,117.00

    Special deductions
    Family home (10,000,000.00)
    Standard deduction (5,000,000.00)
    Total (Special) Deductions (15,000,000.00)

    NET ESTATE 20,349,117.00


    Less: 1/2 Share of Surviving
    (16,700,000.00)
    Spouse
    Conjugal Property 34,000,000.00
    Conjugal Deductions (600,000.00)
    Net Conjugal Estate 33,400,000.00
    (33,400,000/2)

    NET TAXABLE ESTATE 3,649,117.00


    Tax rate 6.00%
    TAX DUE 218,947.02
    Mendoza, Emir-Deogene V. Exclusive Conjugal Total

    Conjugal Properties
    Conjugal real properties 4,000,000.00 4,000,000.00
    (excluding family home)
    Conjugal personal properties 10,000,000.00 10,000,000.00
    (Cash)
    Total Conjugal Properties 14,000,000.00 14,000,000.00
    (excluding family home)

    Exclusive Properties
    Exclusive real properties
    Real Property 1 500,000.00 500,000.00
    Real Property 2 1,250,000.00 1,250,000.00
    Real Property 3 1,750,000.00 1,750,000.00
    Total exclusive real properties 3,500,000.00

    Exclusive personal 2,000,000.00 2,000,000.00


    properties (watch)
    Total Exclusive Properties 5,500,000.00 5,500,000.00

    House and lot (Family Home) 20,000,000.00 20,000,000.00

    Gross Estate 5,500,000.00 34,000,000.00 39,500,000.00

    Less:
    Ordinary deductions
    Conjugal ordinary deductions
    Claims against the estate
    during the marriage (500,000.00) (500,000.00)
    Transfers for public use (100,000.00) (100,000.00)
    Exclusive ordinary deductions
    Unpaid mortgage (750,000.00) (750,000.00)
    Property previously taxed
    (Vanishing deduction)
    Real property (2,414,556.96) (2,414,556.96)
    Watch (386,329.11) (386,329.11)
    Total vanishing deduction (2,800,886.08) (2,800,886.08)

    Total ordinary deductions (3,550,886.08) (600,000.00) (4,150,886.08)

    ESTATE AFTER DEDUCTIONS 1,949,113.92 33,400,000.00 35,349,113.92

    Special deductions
    Family home (10,000,000.00)
    Standard deduction (5,000,000.00)
    Total Special Deductions (15,000,000.00)

    NET ESTATE 20,349,113.92


    Less: 1/2 Share of Surviving (16,700,000.00)
    Spouse
    Conjugal Property 34,000,000.00
    Conjugal Deductions (600,000.00)
    Net Conjugal Estate 33,400,000.00
    (33,400,000/2)

    NET TAXABLE ESTATE 3,649,113.92


    Tax rate 6.00%
    TAX DUE 218,946.84
    Mendoza, Emir-Deogene V.
    Real properties Watch Real property 1 Real property 2 Real property 3 Watch
    STEP 1: Lower value 3,000,000.00 2,000,000.00 500,000.00 1,000,000.00 1,500,000.00 2,000,000.00

    STEP 2: Initial basis


    Less: Paid mortgage (500,000.00) 0.00 0.00 0.00 (500,000.00) 0.00
    Initial basis 2,500,000.00 2,000,000.00 500,000.00 1,000,000.00 1,000,000.00 2,000,000.00

    STEP 3: Proportionate deduction from the initial


    basis
    LIE + TPU (Losses, indebtedness, etc. plus transfers for
    public use) 1,350,000.00 1,350,000.00 1,350,000.00 1,350,000.00 1,350,000.00 1,350,000.00
    Initial basis 2,500,000.00 2,000,000.00 500,000.00 1,000,000.00 1,000,000.00 2,000,000.00
    Gross estate 39,500,000.00 39,500,000.00 39,500,000.00 39,500,000.00 39,500,000.00 39,500,000.00
    Initial basis over gross estate 6.33% 5.06% 1.27% 2.53% 2.53% 5.06%
    Proportionate deduction (LIE + TPU times initial basis
    over gross estate) 85,443.04 68,354.43 17,145.00 34,155.00 34,155.00 68,310.00

    STEP 4: Basis of vanishing deduction


    Initial basis 2,500,000.00 2,000,000.00 500,000.00 1,000,000.00 1,000,000.00 2,000,000.00
    Less: Proportionate deduction allowed (85,443.04) (68,354.43) (17,145.00) (34,155.00) (34,155.00) (68,310.00)
    Final basis of vanishing deduction 2,414,556.96 1,931,645.57 482,855.00 965,845.00 965,845.00 1,931,690.00

    STEP 5: Choosing percentage of deduction level


    Final basis of vanishing deduction 2,414,556.96 1,931,645.57 482,855.00 965,845.00 965,845.00 1,931,690.00
    Multiply by percentage of deduction level 100.00% 20.00% 100.00% 100.00% 100.00% 20.00%
    Vanishing deduction 2,414,556.96 386,329.11 482,855.00 965,845.00 965,845.00 386,338.00

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