Computation of Proper Estate Tax

BIR Ruling No. 010-00

January 5, 2000

ESTATE TAX; Family Home - For purposes of the estate tax, the value of the house and lot shall be included as part
of the gross estate. The one-half share of the surviving spouse in the conjugal dwelling is then deducted from the total
gross estate to arrive at the total net estate of the decedent. Thereafter, the one-half share of the decedent to the
family home (house and lot) is allowed as a deduction from the net estate provided that if the current fair market value
of that one-half portion exceeds one million pesos, the excess shall be subject to estate tax. As a sine qua non condition
for the exemption or deduction, said family home must have been the decedent's family home as certified by the
barangay captain of the locality pursuant to Section 86(A)(4). (BIR Ruling No. 010-2000 dated January 5, 2000)