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Estate Tax Problems Quizzer 1104
Estate Tax Problems Quizzer 1104
Estate Tax Problems Quizzer 1104
GLORIA
Handout No. 005 Comprehensive Quizzer May 2006 Batch
1 TAX 1104
If the decedent was a citizen or resident of the Philippines, the deductible funeral
expenses amounts to:
a. P30,000.
b. P40,000.
c. P18,750.
d. P25,000.
7
. If the decedent was a non-resident alien, the deductible funeral expenses amount to:
a. P30,000.
b. P40,000.
c. P18,750.
d. P25,000.
8
. Mr. Arias died with a receivable from Mr. Bernas. Mr. Bernas has properties worth
P220,000 and obligations of P320,000. Included in the obligations are P20,000 owed to
the Government of the Republic of the Philippines for unpaid taxes and P60,000 owed to
Mr. A. The deductible claim against insolvent persons amount to:
a. P60,000.
b. P41,250.
c. P20,000.
d. P40,000.
9
. The decedent, during his lifetime, was under the conjugal partnership of gains. Among
his allowable deductions from the gross estate is vanishing deduction and the following:
Funeral expenses P 80,000.
Judicial expenses 100,000.
Claims against conjugal properties 120,000.
Mortgage on exclusive property 40,000.
Bequest to charitable institution 5,000.
Bequest to the Philippine Government 60,000.
Medical expenses 300,000.
Amount received by heirs under R.A. 4917 60,000.
In the formula for vanishing deduction where:
Initial basis of property
------------------------------ x Deductions,
Gross Estate
The multiplier “deduction” is equal to:
a. P400,000.
b. P405,000.
c. P 40,000.
d. P100,000.
2 TAX 1104
11
. The total deduction for family home is:
a. P 450,000.
b. P 550,000.
c. P1,000,000.
d. P1,250,000.
12
. Mr. Javier, single, a non-resident, not a citizen of the Philippines, died leaving a gross
estate in the Philippines of P1,000,000 and a gross estate outside the Philippines of
P3,000,000. His expenses and transfers were: Funeral expenses outside the Philippines
of P100,000, mortgage of property outside the Philippines of P200,000 and in the
Philippines of P50,000 and transfer to the Philippine Government of property outside the
Philippines of P100,000.
3 TAX 1104
Receivable from insolvent friend 10,000
Cash, owned before the marriage 150,000
Other properties owned before the marriage 1,000,000
Actual funeral expenses 100,000
Judicial expenses 120,000
Unpaid mortgage 50,000
Unpaid taxes 20,000
Legacy (per will) of P50,000 cash to DSWD 50,000
Loss of household furniture and appliances on December 9, 2003
12,000
16
. The deduction for family home amounts to:
a. P450,000;
b. P900,000;
c. P1,000,000;
d. P1,350,000.
17
. The net taxable estate is equal to:
a. P1,200,000;
b. P 200,000;
c. P1,700,000;
d. P1,000,000.
P2,000,000
Personal property in the Philippines inherited from the father
1,600,000
Family home in the United States
1,400,000
and incurred/paid the following expenses:
100,000
Other obligations contracted within the last two years
250,000
18
. The taxable gross estate is:
a. P3,400,000;
b. P5,000,000;
c. P1,600,000;
d. P3,000,000.
19
. The allowable deduction for family home is equal to:
a. P – 0 -
4 TAX 1104
b. P 700,000;
c. P1,400,000;
d. P1,190,400.
20
. The deduction allowed for property previously taxed is:
a. P1,488,000;
b. P2,678,000;
c. P1,190,400;
d. P1,400,000.
21
. The net taxable estate is:
a. P2,459,600;
b. P1,971,600;
c. P3,162,000;
d. P2,678,000.
P 600,000
Real property in the U.S., used as family home
2,400,000
Tangible personal properties in the Philippines
200,000
Tangible personal properties in the United States
700,000
Funeral expenses in the United States, paid in cash from the estate
110,000
Funeral expenses in the Philippines, paid in cash from the estate
100,000
5 TAX 1104
Medical expenses, incurred within 1 year prior to death (P550,000 paid, the
rest still payable)
900,000
Unpaid obligations (excluding portion of medical expenses)
600,000
Claim against an insolvent person in the Philippines
100,000
Estate tax paid in the United States
300,000
24
. The gross estate is equal to:
a. P 800,000;
b. P4,000,000;
c. P3,900,000;
d. P 900,000.
25
. The net taxable estate amounts to:
a. P695,000;
b. P445,000;
c. P195,000;
d. P860,000;
Questions 26 & 27 are based on the following information:
Mr. Antonio Mitras, a citizen and resident of the Philippines, died on October 5, 2003. He was
married and the property relationship during the marriage was the absolute community of property.
He left the following properties, with their market values, and obligations and charges thereon:
Agricultural land
P100,000
House and lot acquired by inheritance before the marriage and 4-1/2 years
ago, used as family home (with a fair market value of P420,000 and a
mortgage of P120,000 when acquired; P20,000 was paid by Mr. Mitras
before he died)
500,000
Jewelry of Mrs. Mitras, acquired during the marriage with the exclusive money
of Mrs. Mitras
50,000
Clothes acquired during the marriage from income earned during (P60,000 for
use of Mr. Mitras, and P70,000 for use of Mrs. Mitras)
130,000
Cash on hand and in banks: income from unidentified sources
300,000
Cash in bank:
From sale at a loss of exclusive property
1,500,000
Received as gift six years ago and before the marriage (current account)
40,000
Other properties:
Owned before the marriage
90,000
6 TAX 1104
Acquired during the marriage
20,000
Deductions and other information are also presented as shown on the next
page:
Total funeral expenses of P300,000. Paid from the estate
P 58,000
Judicial expenses
120,000
Unpaid mortgage (already on the property at the time acquired):
On agricultural land
20,000
On house and lot
100,000
Other obligations
20,000
Legacy to the Government of the Philippines from the current account
10,000
26
. The amount of allowable vanishing deduction is:
a. P 70,135.34;
b. P114,758.32;
c. P140,270.68;
d. P 86,068.97.
27
. The net taxable estate is:
a. P660,932.33;
b. P857,310.34;
c. P698,620.70;
d. P767,310.34.
Questions 28 through 32 are based on the following information:
Mr. Benjamin Contina, a citizen and resident of the Philippines, died on October 10, 2003, leaving
the following properties, rights, obligations and charges:
Conjugal properties (including a family home of P3,000,000 and
amount receivable under R.A. 4917 of P200,000)
P6,000,000
Exclusive properties (including cash of P500,000 inherited 4-1/2
years ago)
4,000,000
Medical expenses unpaid, January 2003
600,000
Funeral expenses
350,000
Judicial expenses
500,000
Other obligations
100,000
28
. The deductible medical expenses amount to:
7 TAX 1104
a. P600,000;
b. P300,000;
c. P500,000;
d. P250,000.
29
. The amount of deductible funeral expenses is:
a. P350,000;
b. P100,000;
c. P500,000;
d. P200,000.
30
. The family home allowed should be:
a. P3,000,000;
b. P1,500,000;
c. P1,000,000;
d. P 500,000;
31
. The amount of allowable vanishing deduction is:
a. P460,000;
b. P184,000;
c. P 92,000;
d. P138,000.
32
. The net taxable estate is:
a. P3,808,000;
b. P5,058,000;
c. P1,150,000;
d. P2,250,000.
33
. Miss Laura Praningna, a citizen and resident of Sydney, Australia, died leaving properties
and obligations in Australia and in the Philippines; Data on her properties and obligations
follow:
The allowable amount of tax credit for estate tax paid in foreign countries amount to:
a. P2,800;
b. P3,000;
c. P3,300;
d. P5,500;
35
. Assume the same information given in no. 35, compute the estate tax still due after credit
for foreign estate taxes paid:
a. P 6,000;
b. P12,200;
8 TAX 1104
c. P 7,500;
d. P-0-
END
9 TAX 1104
1
. Letter “D” is the correct answer.
2
. Letter “B” is the correct answer.
3
. Letter “C” is the correct answer.
4
. Letter “A” is the correct answer.
5
. Letter “A” is the correct answer.
6
. Letter “A” is the correct answer.
7
. Letter “C” is the correct answer.
8
. Letter “C” is the correct answer.
9
. Letter “A” is the correct answer.
10
. Letter “A” is the correct answer.
11
. Letter “C” is the correct answer.
12
. Letter “A” is the correct answer.
13
. Letter “B” is the correct answer.
14
. Letter “A” is the correct answer.
15
. Letter “C” is the correct answer.
16
. Letter “B” is the correct answer.
17
. Letter “B” is the correct answer.
18
. Letter “B” is the correct answer.
19
. Letter “A” is the correct answer.
20
. Letter “C” is the correct answer.
21
. Letter “A” is the correct answer.
22
. Letter “B” is the correct answer.
23
. Letter “A” is the correct answer.
24
. Letter “B” is the correct answer.
25
. Letter “C” is the correct answer.
26
. Letter “A” is the correct answer.
27
. Letter “A” is the correct answer.
28
. Letter “C” is the correct answer.
29
. Letter “D” is the correct answer.
30
. Letter “C” is the correct answer.
31
. Letter “C” is the correct answer.
32
. Letter “A” is the correct answer.
33
. Letter “C” is the correct answer.
34
. Letter “A” is the correct answer.
35
. Letter “B” is the correct answer.