Integrative Course For Taxation Ateneo de Zamboanga University Accountancy Department Estate Tax

Integrative Course for Taxation
Ateneo de Zamboanga University

Accountancy Department
Estate tax
Problem 1
Lord Allan, Filipino, married Joanne on February 10, 2005, died during the current year leaving
the following properties:
• Riceland, bought by Lord Allan in 2007 – P200,000
• Income of the riceland – P35,000
• House and lot which he brought into the marriage – P800,000
• Income of a portion of the house being leased to student boarders – P26,500
• Subdivision lot inherited by Lord Allan from his father in 2007 – P350,000
• Rent income of the subdivision lot – P12,000
• Coconut land inherited by Joanne from her father who died in September 1995 –
P250,000
• Income from the coconut land – P15,000
• Passenger jeepney given as birthday gift to Joanne by her mother in 2007 – P160,000
• Income derived from the jeepney operations – P8,000
• Jewelries – P50,000
• Savings deposit in a bank earned by the spouse during the marriage – P875,000
• Interest on the bank deposit, net of tax – P3,500
• One-half of the share of Lord Allan in the time deposit with PNB, P200,000. The entire
deposit had earned an interest of P6,000. The money was acquired by Lord Allan and
Angelica, his former wife who died in 2003. Their marriage was blessed with one child,
Kristine.
Required: Compute the community property, and the exclusive property of Lord Allan and
Joanne, respectively, assuming that the marriage was under the absolute community of
property.
Problem 2
Concepcion, married to Domingo, died leaving the following properties:
• Car purchased 3 years before marriage – P250,000
• House and lot acquired during marriage from conjugal funds – P800,000
• Savings deposit with Banco de Oro, obtained through labor and industry of Domingo –
P90,000
• Fishpond in Pangasinan, acquired through the income from Concepcion’s former Goto
House – P200,000
• Lotto winnings by Domingo – P5,000,000
• Yamaha wonderbike purchased by Concepcion out of her exclusive property – P50,000
• Riceland, brought into the marriage by Domingo – P200,000
• Shares inherited by Concepcion from her mother two weeks ago – P63,000
Required: Compute for the conjugal property, and for Concepcion’s exclusive properties.
Problem 3
Stephen died single and capacitated to marry, lived with Hillary without the benefit of
marriage. The properties of the couple consisted of the following:
• Earnings from the salary of Stephen and Hillary – P250,000
• Interest on the earnings deposited in a bank – P3,000
• Car – P550,000
• House and lot – P2,000,000
• Jewelries inherited by Hillary from her mother – P300,000
• Farmland owned by Stephen – P1,200,000
• Income of the farmland – P300,000
Required: Compute the gross estate of Stephen.
Problem 4
Carlito, legally married to Francisca, died leaving the following properties:
• Conjugal properties with Francisca
• Earnings from the salary of Carlito – P120,000
• Earnings from the exercise of Francisca’s profession – P250,000
• Joint property with mistress Robina
• Business interest of couple (Carlito has 70% share) – P800,000
• Income in business – P140,000
• House and lot inherited by Robina – P1,500,000
• Time deposit – P200,000
• Appliances (60% is Carlito’s share) – P150,000
• Exclusive properties
• Carlito – P500,000
• Francisca – P400,000
Required: Compute for Carlito’s gross estate
Problem 5
Cio Lu, Chinese residing in Zhen Zhen City, China, died on October 21, 2010. The following are
the data concerning his properties (all are in Philippine Peso):
Properties:
- House in China 1,750,000.00
- Condominium unit in Sampaloc, Manila 1,500,000.00
- Shares of stock in Co Pia Corp., a Chinese corporation 1,300,000.00
- Car registered in China 450,000.00
- Personal property in the Philippines registered in the name of Cio Lu 500,000.00
- House in Zhen Zhen City inherited from his father, Val Hallada on
December 1, 2006 2,500,000.00
Deductions:
- Funeral expenses incurred in China 200,000.00
- Judicial expenses 60,000.00
- Unpaid mortgage on house in China 250,000.00
- Loss incurred on stocks trading with the Philippine Stock Exchange,
incurred 10 days prior to his death 65,000.00
- Claims against Soo San, insolvent 40,000.00
- Medical expenses incurred before his death 20,000.00
Required: Compute the estate tax due. For purposes of discussion, apply the TRAIN Law
regardless of the year of transaction.
Problem 6
Tyler, Filipino, married and residing in Manila, died leaving properties located in the Philippines
and in the United States. The following data relates to his estate (all are in Philippine Peso):
Net estate, Philippines 200,000.00

Net estate, U.S. 300,000.00
Net share of surviving spouse in the conjugal estate 100,000.00
Tax paid in the U.S. 10,000.00
Required: Compute the estate tax due. Apply the TRAIN Law regardless of the year of
transaction.
Problem 7
Bobby died single, leaving properties in the Philippines and abroad. The following are his data:
 Net estate, Philippines – P250,000
 Net estate, U.S. – P200,000
 Net estate, Hongkong – P350,000
 U.S. tax paid – P15,000
 Hongkong tax paid – P6,000
Compute the estate tax due after tax credit.
Problem 8
Simbulan, married to Babes on December 30, 2000, died on May 20 of the current year. The
properties, rights and claims at the time of his death are as follows (all are in Philippine Peso):
Car purchased in 2007 500,000.00

Jewelry 120,000.00
Family home inherited from his father in 1998 850,000.00
Land and building inherited from his mother in 2003 3,000,000.00
Painting inherited from his father in 1998 150,000.00
Subdivision lot inherited by Babes from her father in 2002 600,000.00
Personal property for exclusive use of Simbulan 75,000.00
Shares of stock brought into the marriage by Babes 200,000.00
Benefits received from the Social Security System 60,000.00
Funeral expenses 115,600.00
Judicial expenses 47,800.00
Notes payable, not notarized 25,000.00
Mortgage payable on land and building (the money was used for the
renovation of the building 50,000.00
Mortgage on subdivision lot 30,000.00
Legacy to Philippine National Red Cross 20,000.00
Income tax on income up to May 20 24,700.00
The painting is the subject of a fideicommissary substitution. The property shall be transferred
by Simbulan, the fiduciary heir, to his son, Bobbit, the fideicommissary. The property regime
was absolute community of property.
Required: Compute the estate tax due. Apply the TRAIN Law regardless of the year of
transaction.

Integrative Course For Taxation Ateneo de Zamboanga University Accountancy Department Estate Tax

Uploaded by

Copyright:

Available Formats

Integrative Course For Taxation Ateneo de Zamboanga University Accountancy Department Estate Tax

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Integrative Course For Taxation Ateneo de Zamboanga University Accountancy Department Estate Tax

Uploaded by

Copyright:

Available Formats

Integrative Course for Taxation

Ateneo de Zamboanga University

Required: Compute the gross estate of Stephen.

Required: Compute for Carlito’s gross estate

Net estate, Philippines 200,000.00

Compute the estate tax due after tax credit.

Car purchased in 2007 500,000.00

You might also like