The document provides information about several estate tax problems involving determining:
1) The taxable net estate and estate tax due for a decedent who was a Filipino citizen residing in Australia and for a decedent who was not a Filipino citizen but resided in Davao City.
2) The exclusive property, community property, taxable net estate, and estate tax due for a nonresident alien decedent.
3) The amount of gross gifts subject to donor's tax for different types of donors (resident citizen, nonresident citizen, resident alien, nonresident alien with reciprocity, nonresident alien without reciprocity).
The document provides information about several estate tax problems involving determining:
1) The taxable net estate and estate tax due for a decedent who was a Filipino citizen residing in Australia and for a decedent who was not a Filipino citizen but resided in Davao City.
2) The exclusive property, community property, taxable net estate, and estate tax due for a nonresident alien decedent.
3) The amount of gross gifts subject to donor's tax for different types of donors (resident citizen, nonresident citizen, resident alien, nonresident alien with reciprocity, nonresident alien without reciprocity).
The document provides information about several estate tax problems involving determining:
1) The taxable net estate and estate tax due for a decedent who was a Filipino citizen residing in Australia and for a decedent who was not a Filipino citizen but resided in Davao City.
2) The exclusive property, community property, taxable net estate, and estate tax due for a nonresident alien decedent.
3) The amount of gross gifts subject to donor's tax for different types of donors (resident citizen, nonresident citizen, resident alien, nonresident alien with reciprocity, nonresident alien without reciprocity).
The document provides information about several estate tax problems involving determining:
1) The taxable net estate and estate tax due for a decedent who was a Filipino citizen residing in Australia and for a decedent who was not a Filipino citizen but resided in Davao City.
2) The exclusive property, community property, taxable net estate, and estate tax due for a nonresident alien decedent.
3) The amount of gross gifts subject to donor's tax for different types of donors (resident citizen, nonresident citizen, resident alien, nonresident alien with reciprocity, nonresident alien without reciprocity).
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PRELIM TASK
Problem 1 (30 points)
The administrator of a decedent’s estate (head of the family) provided the following data:
Property
Domestic shares of 2,000 shares inherited 6 years ago
8,000,000
House and lot, family home, located in Davao, inherited 2 years ago at a value of 1,500,000 2,000,000
Jewelry items in the Philippines at the time of death
400,000
Jewelry items kept in a vault abroad
200,000
Bank deposit in a Philippine branch of a US bank
5,000,000
Interest from bank deposits after decedent’s death
25,000
Expenses and other charges
Funeral expenses abroad 80,000
Funeral expenses Philippines 200,000
Judicial expenses abroad 100,000
Judicial expenses, Philippines 50,000
Claims against the estate with the notarized debt instrument issued in the Philippines 120,000
Donation to the Philippine government as provided in his wills
250,000
Required
A. Determine the following if the decedent was a Filipino citizen but a resident of Australia
1. Taxable Net Estate
GROSS ESTATE Domestic shares of 2,000 shares inherited 6 years ago 8,000,000
House and lot, family home, located in Davao, inherited 2 years 2,000,000 ago at a value of 1,500,000 Jewelry items in the Philippines at the time of death 400,000
Jewelry items kept in a vault abroad 200,000
Bank deposit in a Philippine branch of a US bank 5,000,000 Interest from bank deposits after decedent’s death 25,000 Donation to the Philippine government as provided in his wills 250,000 15,875,000 LESS: Claims against the estate with the notarized debt instrument (120,000) issued in the Philippines TAXABLE NET ESTATE 15,755,000
2. Estate Tax Due
*15,755,000 X 6% = 945,300
B. Determine the following if the decedent was not a Filipino citizen but a resident of Davao City
1. Taxable Net Estate
2. Estate Tax Due
Problem 2 (30 points)
A nonresident alien, married, died on September 2018. He left the following:
Conjugal properties, Philippines, 5,000,000
Exclusive properties, Philippines, 2,000,000
Conjugal properties, USA, 10,000,000
Exclusive properties, USA, 5,000,000
The following deductions were claimed:
Actual funeral expenses, 1,250,000
Judicial expenses, 800,000
Claims against the estate, 1,725,000
Transfer for Public Use, 200,000
Medical expense, 875,000
Included in the Philippines gross estate (conjugal) were the following:
Domestic shares, 500,000
Share in a partnership, 1,000,000
Other tangible personal properties, 3,500,000
The Philippine exclusive properties were all tangible personal properties. These included a car, which was inherited 3 1⁄2 years before the present decedent’s death, and had a fair market value of 500,000.
Required
Determine the following:
1. Exclusive Property of the Decedent
PARTICULAR AMOUNT Exclusive properties, Philippines, 2,000,000 ADD: Exclusive properties, USA 5,000,000 ADD: Other tangible personal properties 3,500,000 LESS: Car which was inherited 10,000,000 TOTAL EXCLUSIVE PROPERTY
2. Community Property
PARTICULAR AMOUNT Conjugal properties, Philippines Domestic Shares 500,000 Share in a partnership 1,000,000 ADD: Conjugal properties, USA 10,000,000 TOTAL CONJUGAL PROPERTY 11,500,000
3. Taxable Net Estate
4. Estate Tax Due
Problem 3 (30 points)
A donor made the following donations during 2018:
To Abel, a car worth 800,000
To Jen, a condominium worth 3,000,000 in Macau
To Gore, GJ Company shares (domestic corporation) amounting to 250,000
To Alexa, 100,000 worth of shares of stock of a resident foreign corporation where 90% of its operation is in the Philippines
To Earl, a building in Singapore valued at 5,000,000 mortgaged for 2,000,000 assumed by the donee
To Hannah, parcel of land in Isabela, 1,500,000
To Chen, 100,000 bank deposit in BPI
To Kristine, 100,000 bank deposit in Metrobank, US Branch
To Gavrie, 500,000 cash
The donor also made the following transfer of properties within the year:
Consideration Received Fair market value at the time of transfer
Land 1 – QC 2,000,000 3,000,000
Land 2 – Taguig 3,000,000 2,000,000
Land 3 – USA 5,000,000 10,000,000
Car – Manila 800,000 1,000,000
Required
Determine the amount of Gross Gifts subject to donor’s tax assuming the donor is
