PROBLEM#1

Funeral expenses P150,000

Judicial expenses 500,000
Medical expenses 400,000
Claims against the estate 200,000 O
Claims against insolvent persons 40,000 O
Taxes 25,000 O
Losses 60,000 O
Mortgage or indebtedness on property 120,000 O
Transfer for public use 100,000 O
Vanishing deduction 28,000 O
Family home 700,000 S
Standard deduction 1,000,000 S
Net share of the surviving spouse in conjugal estate 950,000
Amounts receivable under RA 4917 20,000 S

a) How much are the ordinary deductions from the gross estate? P573,000
b) How much are the special deductions from the gross estate? P 1,720,000

PROBLEM#2
The decedent was single at the time of death, with a gross estate of P10,000,000 in which
is included his family home of P900,000, a receivable from an insolvent person of
P200,000 and a receivable under RA4917 of P500,000. Among items being considered as
deductions from the gross estate are:
Medical expenses P450,000
Funeral expenses 195,000
Judicial expenses 500,000
Claims against the estate 1,000,000 O
How much are the deductions from the gross estate classified into ordinary and
special? Ordinary – P1,200,000 Special – P1,400,000

PROBLEM#3

A man died single with residence in a home built by him. He left cash on hand of
P1,000,000 that he inherited from his grandfather. His death resulted in funeral expenses
of P40,000 paid from his cash and P200,000 paid by his parents.

How much are the deductions from his gross estate? 0

PROBLEM#4

Date of death February 5, 2020

Gross estate P3,900,000
Funeral expenses:

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 Paid 150,000
Unpaid 40,000
Medical expenses:
Paid on last illness, 2 weeks before death 180,000
Unpaid on last illness 300,000
Unpaid on illness January 6, 2019 600,000
Payments to the lawyer assisting in the settlement of the estate:
Acceptance fee April 5, 2020 100,000
Acceptance in court June 16, 2020 3,000
Acceptance in court October 15, 2020 3,000
Appearance in court December 2, 2020 3,000
Claims against the estate 200,000 O
Claims against insolvent person 40,000 O
Unpaid mortgage (on property with FMV of 1M in gross estate) 300,000 )
Losses:
April 10, 2020 with insurance recovery of P10,000 (FMV of 20,000
Of the property included in the gross estate) 30,000
October 2020 50,000 O
Unpaid taxes on real properties included in the gross estate 25,000 O
Legacy of cash to the Brgy. San Andres for rehabilitation of the
Barangay Hall 10,000 O

a) Deduction for funeral expenses? 0

b) Deduction for judicial expenses? 0
c) Deduction for medical expenses? 0
d) Total of other ordinary deductions from the gross estate? P625,000

PROBLEM#5

The decedent was a non-resident alien.

Gross estate in the Philippines P6,000,000
Gross estate outside the Philippines 4,000,000
Funeral expenses outside the Philippines 400,000
Administration expenses in the Philippines 300,000
Administration expenses outside the Philippines 200,000
Claims against the estate in the Philippines 800,000
Claims against the estate outside the Philippines 300,000

a) Allowable deduction from the gross estate? P660,000

b) Net taxable estate? P8,840,000
c) Estate tax due? P530,400

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PROBLEM#6

Exclusive property (including cash of P500,000

inherited 2 ½ years before) P2,000,000
Conjugal property (including family home of P1,900,000) 3,000,000
Ordinary deductions not including vanishing deductions:
Against exclusive property 500,000
Against conjugal property 700,000
The decedent was a resident citizen of the Philippines:
a) Vanishing deduction?
b) Deduction for family home?
c) Net taxable estate?
d) Estate tax due?

PROBLEM#7
The property relationship between the spouses, residents of the Philippines was conjugal
partnership of gains. The decedent died leaving:
Property inherited by the decedent 4 years ago and
during the marriage in Malaysia P2,000,000
Property received as gift by the wife 2 ½ years ago and during
the marriage 1,000,000
Piece of land owned before the marriage 600,000
House built on the piece of land by the spouses
used as family home 1,400,000
Unpaid obligations 200,000
Funeral expenses 300,000
a) Net taxable estate?
b) Estate tax due?

PROBLEM#8
The decedent was under the system of absolute community of property. He died leaving:
Land owned before the marriage and 6 years ago
(used as family home) P1,500,000
House built on land (used as family home) 1,200,000
Clothes of the decedent purchased with the income of the spouse 300,000
Car purchased with exclusive money 1,000,000
Other real and personal property 1,950,000
Actual funeral expenses 300,000
Administration expenses on extrajudicial partition of the estate 500,000
Claims against an insolvent friend 50,000
Claims against the estate (other than mortgage) 700,000
Unpaid mortgage on land 300,000
Unpaid mortgage on car 500,000
a) Net taxable estate?
b) Estate tax due?

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PROBLEM#9

The taxpayer was married and under the system of absolute community of property. He
died on January 2, 2020. He left the following properties and charges thereon:
Personal properties owned for 10 years and before the marriage P1,000,000
Real property received as gift 6 years ago and during the marriage 5,000,000
Personal and real properties acquired during the marriage 4,000,000
Actual funeral expenses 500,000
Judicial expenses on March 1, 2020 200,000
Judicial Expenses on November 6, 2020 120,000
Loss of property on February 6, 2020 100,000
Loss of property on October 16, 2020 200,000

a) Net taxable estate?

b) Estate tax due?

PROBLEM#10

The decedent was a citizen of the Philippines under the system of absolute community of
property during the marriage, with properties of P7,000,000 in the Philippines and
P4,000,000 in Foreign Country A, and all deductions except the net share of the surviving
spouse in the community properties from the gross estate of P2,000,000 in the Philippines
and P3,000,000 in Foreign Country A. There was a payment of P50,000 of the estate tax
of Foreign Country A.

a) Estate tax credit?

b) Estate tax still due after tax credit?

PROBLEM#11

The decedent was single:

Gross Estate:
Philippines P5,000,000
Foreign Country X 3,000,000
Foreign Country Y 2,000,000
All ordinary deductions:
Philippines 1,500,000
Foreign Country X 700,000
Foreign Country Y 800,000
Estate taxes paid:
Foreign Country X 320,000
Foreign Country Y 96,000

a) Estate tax credit?

b) Estate tax still due after tax credit?

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