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    Vanishing Deductions X Estate Tax Computation

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    Shiela Mae Oblan
    1) The document calculates the vanishing deduction for a property by taking the initial basis of $4,000,000, subtracting a second deduction of $543,169.40 to get a final basis of $3,456,830.60, and multiplying the final basis by 20% to get a vanishing deduction of $691,366.12. 2) It then calculates the gross and net estates by listing assets, debts, and deductions for both the exclusive and conjugal properties. 3) The net taxable estate is determined to be $4,330,317 after applying the standard deduction, family home deduction, and shares of the deceased and surviving spouse. The estate tax due is calculated to

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    Vanishing Deductions X Estate Tax Computation

    Uploaded by

    Shiela Mae Oblan
    111 views2 pages
    1) The document calculates the vanishing deduction for a property by taking the initial basis of $4,000,000, subtracting a second deduction of $543,169.40 to get a final basis of $3,456,830.60, and multiplying the final basis by 20% to get a vanishing deduction of $691,366.12. 2) It then calculates the gross and net estates by listing assets, debts, and deductions for both the exclusive and conjugal properties. 3) The net taxable estate is determined to be $4,330,317 after applying the standard deduction, family home deduction, and shares of the deceased and surviving spouse. The estate tax due is calculated to

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    Vanishing Deductions x Estate Tax Computation

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    1) The document calculates the vanishing deduction for a property by taking the initial basis of $4,000,000, subtracting a second deduction of $543,169.40 to get a final basis of $3,456,830.60, and multiplying the final basis by 20% to get a vanishing deduction of $691,366.12. 2) It then calculates the gross and net estates by listing assets, debts, and deductions for both the exclusive and conjugal properties. 3) The net taxable estate is determined to be $4,330,317 after applying the standard deduction, family home deduction, and shares of the deceased and surviving spouse. The estate tax due is calculated to

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    111 views2 pages

    Vanishing Deductions X Estate Tax Computation

    Uploaded by

    Shiela Mae Oblan
    1) The document calculates the vanishing deduction for a property by taking the initial basis of $4,000,000, subtracting a second deduction of $543,169.40 to get a final basis of $3,456,830.60, and multiplying the final basis by 20% to get a vanishing deduction of $691,366.12. 2) It then calculates the gross and net estates by listing assets, debts, and deductions for both the exclusive and conjugal properties. 3) The net taxable estate is determined to be $4,330,317 after applying the standard deduction, family home deduction, and shares of the deceased and surviving spouse. The estate tax due is calculated to

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 2

    A.

    Vanishing Deduction Computation


    1.) Value taken of PPT 4,200,000.00
    Less: Mortgage Pd. 200,000.00
    Initial Basis: 4,000,000.00

    2.) Initial Basis 4,000,000.00


    Divide: Gross Estate 14,640,000.00
    Multiply: Expenses 1,988,000.00
    2nd Deduction: 543,169.40

    3.) Initial Basis 4,000,000.00


    Less: 2nd Deduction 543,169.40
    Final Basis: 3,456,830.60

    4.) Final Basis 3,456,830.60


    x Percentage Allowed 20%
    Vanishing Deduction 691,366.12

    B. Computation of Net Estate Exclusive Conjugal


    House & Lot 5,000,000.00
    Agri. Land 3,000,000.00
    Car 2,000,000.00
    Jewelry 500,000.00
    Clothes (Mr. Costales) 600,000.00
    Cash on hand & in banks:
    Income fr. Unidentified sources 3,000,000.00
    Cash in bank:
    Fr. Sales @Loss of Exclusive Prop. 1,500,000.00
    Received as gift (Current Account) 40,000.00
    Other Prop:
    Owned before marriage 900,000.00
    Acquired after marriage 200,000.00
    Gross Estate: 2,100,000.00 14,640,000.00
    Less: (Ordinary Deductions)
    Unpaid Mortgages on:
    House & Lot 1,000,000.00
    Agri. Land 600,000.00
    Other Obligations 200,000.00
    Claims against Estate 178,000.00
    Legacy to Govt. fr. Current Account 10,000.00
    1,988,000.00
    (Vanishing Deduction) 691,366.00
    Total Deductions: 2,679,366.00
    Net Estate: 2,100,000.00 11,960,634.00
    Less: Family Home 2,500,000.00
    Less: Standard Deduction 5,000,000.00
    4,460,634.00
    Less: Net share of the SP 2,230,317.00
    Add: Net share of the Deceased 2,230,317.00
    Exclusive Prop. Of the Deceased 2,100,000.00
    Net Taxable Estate: 4,330,317.00
    Rate: 6%
    Estate Tax Due 259,819.02

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