Chiter Exess Dedeatios fron the Gress Eade 20, Regardless of the dassifiation of the decedent, the maximum amount of . only 4. and Itt only Awa Nien dled on January 1, 2018 leaving among others the following charges and obligations: Real property tax forthe year 2017 100,000 Notarized interest bearing promissory note 100,000 ‘Accrued interest on the promissory note at the time of death 20,000 Interest to accrue on the promissory note from the date of 10,000 eath tothe date of maturity Income tax cue for 2017 200,000 How much were the allowable ordinary deductions from the gross estate? 2. 420,000 . P510,000 . 30,000 520,000, 7. Claims against the estate of the decedent who died on February 2016; Notes payable for money borowed, not notarized 500,000 Accounts payable for supplies used in business 200,000 Debs from gambling losses 120,000 How much i the deductble cisims against the estate? 2. 200,000 . P470,000 . P320,000 350,000,Chaser Eeerises Deacons fim the Goss Estate LrTe-Ciaims against Insolvent persons 5. ‘The following statements regarding “claims against inolvert persons” are ‘correc, except a. Its. deduction even f the debtor had some properties bi, Teean bea deduction even if secured by © mortgage Te should always be included in te gross estate 4. Should be omitted in the computation forthe net taxable estate i entirely uncoletbie Which ofthe folowing statements is correct? GA person is insolvent when his properties are not suiient to pay bis obligation. b, The daims of the creditors will be satisfied out of the avaliable properties af the insolvent debtor. cc For estate tax purposes, there are two kinds of credtors, preferred and ordinary creditors. 4. Allof the above UTe-Taxes Or Which of the folowing Is not deductible from the gross estate of decedent? TL Income takes on Income received after death TL Property taxes not acrued before death neat ec a. Land TL only . Alof the above b, Mand HT only 4, None of the above 1. Which ofthe folowing taxes is deductible from the gross estate? come tax paid on income receved after death Property tax nat accrued prior to death Estate tx paid on 2 foreign county DDonor's tax accrued prior or before death 42, On June 30, 2018, Juan Dela Cruz passed away. The foliowina unpaid taxes relate to his property, Income on his property, and estate. Estate tor was fled and pal early on December 31, 2018. 22017 Income tax from practice of profession 300,000 ‘income tax practice of profession for Jan, to June 2018 100,000. Theome tax of the estate, July to December 2018 200,000 Real property taxes for 2016 and 2017 450,000 ‘sins taxes for 2017 100,000 “The total taxes that may be deducted from the gross estat is 1. 350,000 « P850,000 , 750,000 «6. 650,000,Chapter Eseries ~ Dedacios oon the Gress Estate LiTe-Losses 13, Which ofthe following fs wrong? Losses deductible from the gross estate '2. Should only be of property included in the Philppine gross estate. , Should be Incurred during Settlement of the estat. May be arlsing from storm, 1d, Should not be compensated by insurance or other form of indemnity. 14, Which is deductible from the gross estate of resident decedent? ' Loss of portion of the estate incurred during settlement period such as those arising from theft Loss of portion ofthe estate incurred 200 days before the death ofthe decedent. Loss of portion oF the estate incurred a month before the death ofthe decedent. Losses on the portion of exclusive capital of surviving spouse incurred during Settlement of the estate. Use the folowing information forthe next four questions: ‘Among the properties included in the gross estate of the decedent atthe time fof death Is 2 three-story commercial building with a flr market value of 12,000,000. During the settlement ofthe estate and before the last day of paying the estate tax, the said property Is destroyed by fre, The fair market Value atthe time ofthe incident was P13,000,000. 15, The amount that should be incuded as part ofthe gross estate is 2. PO . P12,500,000 bi. P12,000,000, 4. 13,000,000 “The amount of deductible loss wil be ‘2. PO 12,500,000 ». 12,000,000 . P13;000,000, ‘Assume that the property was Insured for P10,000,000 and te amount recovered from the Insurance company was P9,000,000. ‘The emount of desctble loss wil be ‘2. 1,000,000 «. P9,900,000 ». P3}000,000 4. 12,000,000 ‘Assume that 70% of the property is destroyed by fre and the property Is rot insured. The deductible oss wil be 2, PO 8,400,000 '. 3,600,000 4, P12,000,000,Ohepter Ecrcises ~ Dedations fy, the Gross Estate taster Ea cla He fom the Gress Et Transfer for Public Use 1. etains to the amount of al the bequests, legacies, devises or sor any Use of the Government of the Recubne ot acn PeneDes, OF any politcal subdivision tener, ae excisively pubic Purposes, 2. Transfer for public use Property previously taxed . Vanishing deduction 4. Inbertance 20 y Sense for Pub use" as ceducton fam the gross estate is meant dispositions in: 1 Patprnel ant testament in favor of the Goverment of the soci Pola subdhison thereof, for ence 1 effect after death in favor of the Government of Pa rteR es, or any poltcal subdivision twee for excusively public purposes, 2. Loniy © Both I and tt b. Tony . Neither T nor 21 WM of the elon s nota remedy apn ube tation 3. Estate taxcredit Vanishing deductionEee ———__ Chir Exes Debictons fon the Gross Estate anishing Deductions 4 iin alt ay sted pac Fo ara ear Se erect inched i Ms tm SMe “The appicadle Vanishing rate is 2, 0% c, 60% . 40% 6, 80% 4, Vanishing duction i val by tae Te educe his out vat Th Reduce fis gross income THE, Reduce his gross estate a, Lon ¢ Mon, bow 6, Mand tt only 6, which ofthe folowing statements e59"ST5 gross estates 2 essen the impact of ft Teng dasucion is beng allowed Ce successive erty within 2 very snot , Even property previous Eve ope aen dade, for esa x PUPOSS can De owed varshing deduction owe apd morgage may De dducea the gross estate, Sot roa ie of te mortgage OPS form part Of the goss estate in ful a, Peoa ares to be deduct FO 6 estate, such For utr accrued atte tie oF before He ijecedent’s deat 27. vc of te Fteing ropes Namavepa Nt 1, 201Bis subject 10 ? O18 se ot House Togayay Puch 2018 opery 2 commerce ik 20 PHS Tapered from her mother Propet ae te ena eter Nad SS) 20 wd Donaon fom 2 en 9 2097 property # Benton Po aera (6) ments ate SP propery, proertv operted Progert 4 a No No Yes Yes b Ne No Yes No eves Yes No Yes a Ye Yes No Noleper Eursives - Deductions fie the Gross Etat 28, Ded Nha, a cttzen ofthe Philippines and a resident of Bacolod Cty, ced testate on May 10, 2018. Among his gross estate ae properties inherted from his deceased father who died on April 4, 2015. What percantage of ‘deduction wil be used in eamputing the amount of vanishing deduction? 2, 80% of the value taken as bass for vanishing geduction, . 100% ofthe value taken as bass for vanishing deduction 60% of the value taken as the basis fr vanishing deduction 4. 40% ofthe value taken as the basis for vanshing deducion (On September 4, 2018, Yumgo N. Rn ded leaving an apartmene building which has a fir value of P1,000,000 which he inherted from his mother. ‘The property was valued at P900,000 at the time of inheritarce dated July 28, 2015. The bulling has a previous morgage of P150,000 of which 50,000 was pat by Yumao N. Rin prior to his death, In computing for the vanishing deduction, what percentage wil be used end how much wll be the vanishing decution? 2. 40%; 306,000 405; 323,000 i. 60%; 300,000 20% P305,000 SPECIAL DEDUCTIONS ‘Standard Deduction 30, Upon effectivty of the TRAIN Law, which Ig nat tue about standard seduction? 2, Ieneed not be substantiated . It does not apply to nonresident allen decedent ._Itmust be reflected inthe estate tax return 4d. None of the above 31, Statement 1: ‘The P5,000,000 standard deduction for estate tax urpases is @ short-cut, legal mechanism to further exempt the less crivleged ‘estate and heis from the tax burden. ‘Statement 2. The BIR may examine the bank deposit of a decedent for the purpose of determining his gross estate without violating the Bank Secrecy Law. 3. Statements 1 & 2 are false Statement 1 is tue but statement 2is false Statement 1s fase but statement 2s true Statements t and 2 are tueChipter Exarses Delstias fim the Grass Etat Family Home OP Statement 1: The maximum amount of deducts family home from the ‘ross estate is P10,000,000, Fal he family home is exctushe property of tins 2 CTE market vale of P1006 000, ‘ot subject to estate toe 2. ‘Statements 1 and 2 are correct '. Only statement? is conaat © Only statement 2s correct 4. Statements 1 and 2 are incorect = Oy on atoment correc? A deduction or any tome B Shan ha 3ONed i the famty home sm te Peete O Ran Beata maximum of 0,000,000, bases © [es Awe fro fmt homes (one nthe Ged anater the barn both the Pilopines end with cea the ba wud not be alowed famiy home deduction because he was abroad when he dies ©. The decedent allowed family home because all ‘ecedents were alowed family home deduct” Amount received under RA 4917 7 Mich oF the folowing statamentsregercing ‘amount{s) received or Fecelvable under RA4917 & nat corteeth oe con SNES by the hes om the decedens employer decadence Fh Seth of the decedent onsen estate oF the Act 4917 shall be nc Hae ee ‘estate ofthe decedent,$e Olepter Eseries ~ Dedection 1 fom the Gross Estate| »- Any amount receved by the heirs from the decederts em 32 consequence of the death of the decedentemploies’ a accordance with Reruble Ac 4917 shal be deducting tore ano ‘Oss estate ofthe decedent. © Both a" and "bi" 4. Neither "3" nor" 36. A decedent has one year lft to complete 30 years of continous tener semNe! when he ded. Hs ony nr received P1.30,000 Dene under RA 4917. What shouldbe the amount fo be hace ‘105s estate? '. 1,500,000 P1,000,000 . 500,000 d. PO 7, Based on the preceding problem, what amount shouldbe included ae ‘of decuctions from grass estate? ‘2, P1,500,000 « P1,000,000 '. 500,000 bo eductions for Nonresident Alien Decedents 78 One ofthe folowing s allowed as a decicion from the gross estat of Toeeetent allen under the Tax Cade as amended by Ra 10ses% (au), But 's prorated between Phiippine gross estate and tee Gee word gross estate 2. Losses indebtedness, claims against the estate and taxes . Share of the sunaving Spouse © Vanishing deduction 4. Standard deduction 39. A nonresident allen decedent left the flowing assets: Domestic shares 000,000 Foreign shares 3,000,000 Tangtle personal property, Philppines _Sooo00 Losses, unpaid indebtedness and taxes 1 200/000 | 4. P5,280,000,leper Ecervies ~ Deductions from the Gros Etat 49. A nonresident alien died on March 10, 2018 leaving the folowing properties and deductions ‘Shares, domestic corporation 500,000 Shares, foreign corporation ‘500,000 ‘Tangible personal property 1,500,000 Deductible losses, indebtedness and taxes ‘500,000 ‘Assuming there is no reciprocity, the estate tax due Is ‘2. 36,000 1,500,000 P6000 <4. 600,000