TAX: CHAPTER 12 (QUIZ)

FALSE 1.The right or privilege to transfer properties is subject to income taxes.

TRUE 2. Unilateral transfers are also called gratuitous transactions or simply, transfers.
TRUE 3. Donations are taxable when completed & perfected.
TRUE 4. When one dies, everything he owns will be transferred to his successors through a
will or by judicial means.
FALSE 5. Transfer taxes are levied to raise money to support the government’s business,
hence, it is a business tax.
FALSE 6. Oral donation of real property is a valid donation.
TRUE 7. Tax base of mortis causa complex incomplete transfer is fair value at death less
consideration given.
Compulsory 8. Which is not a form of succession?
FALSE 9. Estate tax is generally an indirect tax because it is impossible for the decedent to
resurrect and pay the tax.
Succession 10. A mode of gratuitous acquisition of property by the death of a person
FALSE 11. Transfers between living persons are generally considered donation mortis causa.
FALSE 12. Transfer tax is dominantly viewed as a form of penalty rather than a privilege tax.
Administrator 13. A person appointed by the court to manage the distribution of the estate
Will 14. A written document which sets forth how the decedent's property will be
distributed after death
TRUE 15. When a person transfers property, the government is a party in the orderly
transfer of the property to the donee or heir.
dead 16. The donor in a donation mortis causa is
TRUE 17. When transferor waives his right to revoke, revocable transfer is completed inter
vivos & is then subject to donor’s tax.
FALSE 18. The ability to transfer property is an indication of an ability to pay tax. This is the
very essence of Wealth Redistribution Theory
FALSE 19. Succession is the onerous transfer of property from a deceased person upon death
to his heirs.
FALSE 20. Under TRAIN law, transfer taxes are generally progressive.
Intestate 21. Succession in the absence of a will
FALSE 22. Cancellation of indebtedness w/o consideration is not subject to transfer tax.
Estate tax is an excise tax 23. Which is correct
Mixed 24. Succession by will and operation of law is
TRUE 25. State partnership theory’s essence is that the government is an indirect partner
behind all forms of wealth accumulation.
estate tax 26. Which is not an element of succession?
 TRUE 27. Juridical persons organized abroad are considered Philippine residents if they
have a fixed place of business in PH.
Donation 28. A mode of gratuitous acquisition of property out of the generosity of a person
TRUE 29. Bilateral transfers involve transmission of property with a consideration.
FALSE 30. If fair value of property in an incomplete complex transfer is below the
consideration paid at completion of transfer, it is still subject to transfer tax because the basis
of tax is fair value at delivery date.
TRUE 31. Tax base of inter vivos complex incomplete transfer is fair value at date of
completion of transfer less consideration given.
FALSE 32. Transfer taxes are considered local taxes collectible by the local government unit
where the decedent or donor resides.
FALSE 33. Even when preterminated by death, conditional transfers are subject to donor’s
tax upon fulfillment of condition.
TRUE 34. In transfer taxation, transfers refer to any transmission of property from one
person to another.
TRUE 35. Donation is the gratuitous transfer of property from a living donor to a donee.
FALSE 36. The realized gains on bilateral transfers are generally subject to capital gains tax.
TRUE 37. Transfer tax is an ad valorem tax because tax is computed based on the value of
properties transferred.
TRUE 38. Succession is called donation mortis causa because it is generally effected upon
death of a person.
FALSE 39. Transfers in contemplation of death are subject to donor’s tax.
TRUE 40. Cash is an intangible for transfer tax purposes.
25750000 41. The following relates to a transfer made by a seller: Selling price –
P11,750,000; Fair value of property at date of sale – P30,500,000; Fair value at death of seller –
P37,500,000. Assuming title to the property is transferred at the date of sale, how much is
amount subject to transfer tax if title to the property is agreed to be made at date of death of
seller?
18750000 42. Assuming title to the property is transferred at the date of sale, how much is
subject to transfer tax?
15700000 43. A donor transferred the following properties on a certain day - Philippine
transfers: Cash – P6,300,000; Luxury car – P15,700,000; Transfers Abroad: Cars – P47,300,000.
Assuming donor is a non-resident alien with a reciprocity exemption, what is the amount
subject to transfer tax?
69300000 44. Assuming donor is a resident citizen, what is the amount subject to transfer
tax?
2840770 45. On January 1, 2018, Blueberry gave a car worth P3,201,000 to her brother,
Blackberry, as gift subject to the condition that Blackberry must be #1 in the May 2018 Board
Examination. Blueberry died in a car accident on March 3, 2018 when the fair value of the car
was P2,840,770. How much is subject to estate tax?
1025000 46. On January 1, 2018, Apple transfer her car with a fair value of P1,750,000 to
Pie for a consideration of P350,000. The transfer is revocable by Apple in 6 months. On April 1,
2018, Apple waived her right of revocation when the fair value of the car was P1,375,000. How
much is amount subject to donor’s tax?
1000000 47. Paula sold diamonds with fair value of P3,288,000 to Titus at a price of
P2,000,000 on January 1, 2017 but revocable within one year. The one-year period lapsed
when the diamonds had fair value of P3,000,000. How much is subject to transfer tax?
30241500 48. Mike, an Iranian citizen residing in the Philippines, died leaving P8,400,500
cash; P5,040,750 interest in a business & a P16,800,250 condominium unit in the Philippines.
Under Iranian laws, Filipino-residents therein are exempt from transfer taxation. How much
total amount to be included in gross estate?
657500 49. On March 2017, Papaya donated a piece of jewelry with a fair value of P517,950
to her father on the condition that the same shall be revocable until December 31, 2017.
Papaya did not revoke the transfer. On January 1, 2018, it has a fair value of P657,500. How
much is amount subject to transfer tax?
3239775 50. Luke donated stock securities to his daughter Ruth, as a reward to the latter
for services rendered. The property has a fair value of P3,394,050 when Luke wrote the deed of
donation. The same has a value of P3,239,775 when the donation was accepted by Ruth. How
much is the amount subject to donor’s tax?

TAX: CHAPTER 13 (QUIZ)

TRUE 1. Secondary heirs will inherit the estate of the decedent in the absence of primary
heirs.
TRUE 2. Executor is a person named by the decedent to carry out the provisions of his will.
FALSE 3. Conviction of an attempt against the life of the testator cannot be a reason for
disinheritance of a spouse.
TRUE 4. A will is an act whereby a person is permitted, with the formalities prescribed by
law to control to a certain degree the disposition of his estate to take effect after his death.
FALSE 5. The rights to the succession are transmitted after the burial of the decedent.
FALSE 6. The three types of compulsory heirs are primary, secondary and tertiary heirs.
TRUE 7. Succession involves only the net properties of the decedent.
TRUE 8. Estate tax is a tax on the privilege to transfer property upon death.
TRUE 9.Escheat is proceeding whereby the State, by virtue of its sovereignty, steps in and
claims the real or personal property of a person who dies intestate without heir.
 FALSE 10. When a person dies without will, the distribution of the estate shall be in
accordance with the desires of his heirs.
FALSE 11. Free portion of the hereditary estate can only be given to the decedent’s relatives.
TRUE 12. Testamentary succession is that which results from the designation of an heir,
made in a will executed in the form prescribed by law.
FALSE 13. Succession is a mode of acquisition by virtue of which the property, rights and
obligations to the extent of the value of the inheritance of a person are transmitted through his
death to another by operation of law only.
TRUE 14. Legatee is a person whom gifts of personal property is given by virtue of will.
FALSE 15. Gross estate pertains to the totality of the properties present at the decedent’s
house at the point of his death.
TRUE 16. Normally, only the primary heirs & concurring heirs shall share in the hereditary
estate.
FALSE 17. Just like income taxation, resident aliens are subject to estate tax on estate within
the Philippines only.
TRUE 18. Inheritance includes all property, rights and obligations of a person which are not
extinguished by his death.
FALSE 19. A person who died without will is said to be testate
FALSE 20. Codicil is a will which is entirely written, dated and signed by the hand of the
testator himself.
FALSE 21. A person cannot specify the recipient of his properties upon death because
succession is only by operation of law.
FALSE 22. Determination of the share of each heir in the distributable estate is done only
after all charges to the hereditary estate excluding estate tax had been deducted.
TRUE 23. The validity, invalidity or the absence of decedent’s will cannot affect estate
taxation.
TRUE 24. A deceased person who left a will is called testator.
TRUE 25. The primary heirs include the legitimate children of the deceased person.
TRUE 26. Mixed succession is the transmission of the decedent properties partly by virtue
of a written will and partly by operation of law.
TRUE 27. Estate is also referred to as the inheritance.
TRUE 28. Testamentary succession is one in which there is a will left by the deceased
person.
FALSE 29. The secondary heirs include the siblings of the deceased person.
TRUE 30. Devisee is a person whom gifts of real property is given by virtue of a will.
TRUE 31. Notarial will is a notarized will signed by the decedent and witnesses.
TRUE 32. Probate is a special proceeding to establish validity of a will and it is mandatory.
 TRUE 33. Administrator is a person appointed by the court to manage the distribution of
the estate of the decedent.
TRUE 34. As a general rule, every will must be acknowledged before a notary public by the
testator and the witnesses.
TRUE 35. Descendant is an heir of a deceased person.
FALSE 36. In the absence of compulsory heirs, collateral relatives up to the 4th degree of
consanguinity will inherit the estate, or in their absence, the national government
FALSE 37. A second cousin is within the fourth degree of consanguinity and so, he can inherit
a decedent’s estate in the absence of the nearest heirs.
FALSE 38. In intestate disposition, the decedent can name a person as an heir whether
related or not to him as long as he does not violate the legitime.
FALSE 39. The making of a will is strictly a legal act whereby properties of a person will be
distributed in accordance with the law.
FALSE 40. Holographic will is a supplement or addition to a will by which disposition made in
the original will is explained, added to or altered.
FALSE 41. The three elements of succession are the decedent, the will and the heirs.
FALSE 42. Concurring heirs include the illegitimate parents of the decedent.
FALSE 43. Succession is an onerous transmission of property from a deceased person in favor
of his successors.
TRUE 44. Net taxable estate is the net properties of the decedent after all pertinent
deductions allowed by law.
FALSE 45. A holographic will must always be witnessed.
TRUE 46. A codicil needs to be executed as in the case of a will to be valid.
TRUE 47. The heirs can repudiate their share in the inheritance of the decedent.
FALSE 48. Estate taxation is governed by the law in force one year after decedent’s death
which corresponds to the deadline of filing.
TRUE 49. The heirs shall not inherit the debt of the decedent.
TRUE 50.Legitime is that part of the testator’s property which he cannot dispose of because
the law has reserved it for certain heirs.
8000000 51. Mr. A died w/o will & survived by his father and 3 legitimate children. Net
hereditary estate is P24,000,000. How much will each child receive? 24000000/3=8000000
0 52. How much is share of his father?
25000000 53. Don Marco died without will. P300,000,000 was net hereditary estate to his 3
legitimate sons, 4 illegitimate sons and his wife, Marca. How much is the share of each
illegitimate son?300000000 x 2/6 = 100000000/4 = 25000000
50000000 54. How much is legitime of Marca?
50000000 55. How much is the share each legitimate son?300000000 x 3/6 = 150000000/3
=50000000
 67500000 56. Don Mariano left a net hereditary estate of P202,500,000 to his two
illegitimate sons, and his legal wife, Vicenta. How much is the free portion? 202,500,000 x1/3 =
67500000
67500000 57. How much is the total legitime of the illegitimate sons? 202,500,000 x1/3 =
67500000
67500000 58. How much is the legitime of Vicenta? 202,500,000 x1/3 = 67500000
90000000 59. Don Pablo has a net hereditary estate of P180,000,000. His 2 children, Pedro
and Pedra are the only heirs. How much is legitime?180000000 x 1/2 =90000000
90000000 60. How much is the free portion? 180000000 x 1/2 =90000000

TAX: CHAPTER 13A (QUIZ)

FALSE 1. Proceeds of life insurance policy irrevocably designated to the decedent’s son
should be included in gross state.
TRUE 2. Properties subject general power of appointment by the decedent shall be included
in gross estate of the decedent.
FALSE 3. Expenses paid after death must be deducted to establish gross estate at the point of
death.
FALSE 4. Usufructuary rights transferred by decedent to his heirs shall not be included in
gross estate.
FALSE 5. Transfers to the government and its instrumentalities are considered items of
exclusions.
TRUE 6. If properties are transferred by decedent prior to his death but retains certain
rights, the same shall be included in gross estate to the extent of the decedent’s interest
therein.
TRUE 7. Pawned properties are included in the gross estate of decedent.
FALSE 8. To determine value of usufruct, probable life expectancy of beneficiary is
determined based on latest standard mortality table approved by Secretary of Finance upon
recommendation of BIR Commissioner.
TRUE 9. The gross estate of a married decedent includes the separate properties of the
decedent and their common properties.
TRUE 10. If inventory of properties is done at a later date after death, it is necessary to
work back to establish the list of properties at the point of death.
FALSE 11. Bequest, device or legacies to social welfare, cultural & charitable institution are
exempt from estate tax if donee institution uses not more than 80% of such for administration
purposes.
 TRUE 12. The husband’s exclusive properties should not be included in the gross state of his
wife.
FALSE 13. Properties held in trust by the decedent at the point of his death should be
included in his gross estate.
TRUE 14. Adjusted net asset method is no longer applicable to shares of stocks of
decedents starting January 1, 2018.
TRUE 15. Revocable transfers involve transfer of possession over property during lifetime of
decedent but not its ownership.
FALSE 16. Bona fide sales for adequate considerations are subject to transfer taxes.
TRUE 17. If transfer qualified for exclusion, it shall not be reflected in both gross estate and
deduction.
TRUE 18. Properties which the law does not have fixed valuation rules shall be valued using
fair value rules under GAAP.
TRUE 19. Bona fide sales are not subject to transfer taxes.
FALSE 20. If reciprocity rule applies, non-resident aliens are subject to estate tax on transfers
of tangible and intangible properties in the Philippines only.
FALSE 21. Transfers in contemplation of death are treated by tax law as donation mortis
causa subject to donor’s tax.
FALSE 22. Foreign currencies shall be included in gross estate using the prevailing exchange
rate upon distribution of estate to heirs.
FALSE 23. In irrevocable transfers, ownership transfers only when the transferor waives the
right to revoke the transfer
TRUE 24. Transfer by way of bona fide sales are onerous transactions rather than gratuitous
transactions.
FALSE 25. Book values of all decedent’s properties must be established as the point of death.
TRUE 26. Under the old law, listed shares owned by decedent are valued at closing rate
upon his death.
FALSE 27. Taxable transfers for inadequate consideration are valued at fair value at death of
decedent plus consideration paid.
FALSE 28. Under Revenue Regulation 12-2018, unlisted preferred shares should be included
in gross estate at their book values.
FALSE 29. Properties which are absent at the point of death but are owned by the decedent
at the point of death should not be included in gross state.
FALSE 30. The share of the surviving spouse in the net common properties is an item of
exclusion from gross estate.
FALSE 31. The proceeds of life insurance policies which are revocably designated by
decedent to any beneficiary is no longer owned by decedent at the point of death.
 TRUE 32. Properties existing at the date of death but are not owned by decedent are
exempt transfers.
FALSE 33. Valuation of real properties for estate tax purposes is the highest of zonal,
assessed and independent appraisal values.
FALSE 34. Properties representing income earned before death should not form part of the
gross estate.
TRUE 35. Properties acquired using GSIS or SSS benefits are still exempt if heirs can prove
that they are acquired using exempt funds.
FALSE 36. The exclusive properties of the wife are called capital.
FALSE 37. In revocable transfers where transferor dies without waiving revocation right, the
properties should no longer be included in gross estate.
TRUE 38. Transmission or delivery of the inheritance by the fiduciary heir to the
fideicommissary is not subject to estate tax.
FALSE 39. The presence of special power of appointment enables the holder of such power
to do anything with the property as if it is his own.
FALSE 40. Loan receivables by a decedent should be included in his gross estate excluding
any accrued income on the loan.
FALSE 41. The exclusive properties of the husband are called paraphernal.
FALSE 42. Merger of usufruct in the owner of the naked title is a transfer subject to estate
tax.
FALSE 43. The wife’s exclusive properties should be included in the gross state of her
husband.
TRUE 44. Properties representing income accruing after death must be excluded from gross
estate.
TRUE 45. Gross estate of residents and citizens consists of all tangible or intangible, real or
personal properties of the decedent wherever situated.
FALSE 46. Overdue collectibles from insolvent persons are not included in the gross estate.
TRUE 47. The fair value of listed shares shall be the arithmetic mean between highest &
lowest quotation on the date nearest to the decedent’s death if none is available on the date of
death itself.
FALSE 48. Bequests restricted by decedent for administrative expenses of qualified donee
institution shall not be included in gross estate.
FALSE 49. If the beneficiary of life insurance is the estate, executor or administrator, it
should be included in gross state only if designation by decedent is irrevocable.
FALSE 50.Revenue Regulation 12-2018 states that unlisted common shares should be
included in gross estate at par values.
 6000000 51. Inventory of David’s properties & obligations include: House & lot at FV – P5M;
Mortgage loan payable (house & lot) – P1M; Car at FV – P400,000; Receivables (P50,000
uncollectible) – P600,000. How much is gross estate? 5000000+400000+600000
4700000 52. Esther died with the following properties at the point of death: Cash in bank –
P1,500,000; Receivables from friends – P700,000; Borrowed car from a friend – P620,000;
Condominium unit – P2,500,000; Motorcycle, registered in youngest daughter’s name –
P130,000. Taxable gross estate if Esther is a resident decedent is how much?
1500000+700000+2500000
2500000 53. Taxable gross estate if Esther is non-resident alien w/reciprocity is how much?
7000000 54.The following properties were identified upon the death of Mary: Insular,
revocably designated to husband – P900,000; Prulife, irrevocably designated to son – P700,000;
Fortune, revocably designated to Mary’s estate – P800,000; BDO Life, irrevocably designated to
Mary’s executor – P500,000; Car, registered in her sister’s name – P900,000; Merchandise,
consigned to Mary – P300,000; House & lot – P2,500,000; Jewelry set, borrowed from a friend –
P250,000; Boarding house, held as trustee – P4,100,000; Taxicab – P1,100,000; Taxicab
franchise – P700,000; Dress, books & equipment – P500,000. How much should be included in
gross estate? 900000+800000+500000+2500000+1100000+700000+500000
6250000 55. How much should not be included in gross estate?
Prulife700000+Car900000+Merchandise300000+Jewelryset250000+Boarding house4100000
28500000 56. Joseph died on June 30, 2018. An inventory was not immediately prepared
because of the wake. An inventory count of his properties was done only on July 31, 2018. On
this date, there were properties which have fair values of P25,500,000. P500,000 of these
represents income earned after death while P2,000,000 represents income earned before
death. A total of P2,500,000 were paid for funeral expenses and other expenses of the estate. A
total of P1,000,000 obligations of the decedent were paid since his death. How much should be
gross estate? 25500000-500000+2500000+1000000
20000000 57 . Ruth owns 20% of the 1,000,000 outstanding preferred shares with par value
of P100 per share of Bethel Corporation, a closely held corporation. The shares had book value
per share of P150 on its financial statement nearest to the date of death of Ruth. Bethel had
several assets which exceeds their fair value by an aggregate amount of P28,000,000. This
investment should be valued in gross estate at how much? 1000000 x 20% x 100 = 20000000
24000000 58. Ruth owns 20% of the 1,000,000 outstanding shares of Bethel Corporation, a
closely held corporation. The shares had book value per share of P120 on its financial
statement nearest to the date of death of Ruth. Bethel had several assets which exceeds their
fair value by an aggregate amount of P14,000,000. This investment should be valued in gross
estate at how much?
2056500 59. At the time of death of Moses (resident alien), his properties are: Brand new car
– P1,000,000; Used personal computer (Acquisition cost of P100,000 & second hand value of
P20,000); Jewelry at Cebuana (at 40% pawn value – P60,000; Time deposit at 3% interest per
year (deposited 4 months before death) – P200,000; 2-year non-interest bearing notes
receivable (effective interest 10%, 1 year remaining period, PV factor for 1 year is 0.909) –
P500,000; Cash on hand in Peso – P80,000; Dollar on hand - $3,000 (conversion – P50 per $1).
Reportable gross estate is how much? 1000000+20000+pawned
jewelry150000+200000+accrued interest 2000+discounted NR 454500+80000+dollar in peso
150000
1170000 60. If he is a non-resident alien w/reciprocity, gross estate is how much?
car1000000+computer20000+Jewelry150000

TAX: CHAPTER 13B (QUIZ)

TRUE 1. Under the Family Code, the property relation between the spouses must be agreed
upon by the spouses before marriage.
FALSE 2. Under ACP, properties brought into the marriage will become common properties.
This is the prospective feature of ACP.
TRUE 3. ACP & CPG treat properties received gratuitously during marriage in the same
manner.
FALSE 4. The acquisition of exempt properties will be included as exclusive or common
properties of the spouses and will be included as part of the gross estate.
TRUE 5. CPG is generally prospective in application.
FALSE 6. Properties brought into marriage by either spouse with a descendant by a prior
marriage are common properties under ACP.
TRUE 7. Properties accumulated before marriage by a spouse with descendants in prior
marriage are separate properties because the law protects interest of descendants in prior
marriage.
FALSE 8. Fruits from all properties during marriage are considered common properties under
all regimes.
TRUE 9. In the absence of agreement, marriages celebrated before August 3, 1988 shall be
governed by CPG.
FALSE 10. Properties for exclusive personal use of either spouse, other than jewelry, shall be
treated as common properties if they are acquired from fruits of common properties under ACP.
FALSE 11. Under CPG, income of separate properties of the spouses are considered separate
properties.
FALSE 12. Jewelry inherited during marriage by either spouse is generally considered
common properties under ACP.
 TRUE 13. Under CPG, properties that accrue as fruit of individual or joint labor during
marriage are conjugal properties.
FALSE 14. Under ASP, properties are presumed jointly owned by the spouses unless proven
to be separate.
FALSE 15. Under CPG, all fruits of properties excluding properties acquired by gratuitous title
during marriage are considered common properties.
TRUE 16. Upon death of a spouse, the properties held by the spouses shall classified as
separate or common depending on the agreed regime.
TRUE 17. Under ACP, all properties which the spouses may acquire during marriage from
their separate labor shall be considered common properties.
FALSE 18. Under all property regimes, properties acquired using separate properties during
marriage become common properties.
TRUE 19. Salary, profits or gains of labor or industry of either spouse are conjugal
properties under CPG.
FALSE 20. Properties received by the spouses by way of gratuitous acquisition during
marriage should be treated as separate properties at all times under ACP.
TRUE 21. In ACP, fruits follow principal.
FALSE 22. Fruits of separate properties of the spouses are considered common properties
under ACP.
TRUE 23. Income of properties acquired by the spouses during marriage are considered
common properties under CPG.
TRUE 24. Jewelry purchased by a spouse using income of property donated to him during
marriage is considered exclusive property.
TRUE 25. Marriages starting August 3, 1988 shall be governed by the ACP.
TRUE 26. Conjugal partnership of gains views marriage as a union of gains that accrue
during marriage.
FALSE 27. ACP retroacts if there are affected descendants in a prior marriage.
TRUE 28. Properties for exclusive personal use of either spouse, other than jewelry, are
separate properties regardless of whether they are acquired before or during marriage under
ACP.
FALSE 29. Under ACP, all present properties owned by the spouses at the date of celebration
of the marriage shall be exclusive properties.
FALSE 30. Under ACP, fruits of separate properties are considered common properties.
TRUE 31. ACP is best described as retrospective & prospective in application.
TRUE 32. Under ACP, all properties which the spouses may acquire during marriage from
their joint labor shall be common properties.
TRUE 33. The exempt foreign properties of married non-resident alien decedent must be
excluded from Philippine gross estate.
 FALSE 34. Under ACP, properties received by way of gratuitous title during marriage can
never be considered common properties.
FALSE 35. Under ASP, all properties of the spouses are separate properties, including those
which they acquire jointly.
TRUE 36. Properties acquired using common properties are common properties under CPG.
FALSE 37. The property interest of the spouses shall always be determined by referring to
the dividing line – August 3, 1988.
FALSE 38. Fruits of common properties are considered separate properties under ACP.
TRUE 39. Under ACP, properties for the exclusive personal use of either spouses, except
jewelry, are considered separate properties
TRUE 40. Under CPG & ACP, properties of the spouses are presumed common unless
proven to be exclusive.
2000900 41. Under CPG, Gross estate of Mr. Barnabas is how much?
Mr. Barnabas died. An inventory & analysis of the properties held by his family is presented
below:
Mr. B Mr. B Total

Acquired before marriage:

For exclusive personal use P 23,540 P 35,310 P 58,850
Other properties acquired 329,560 553,190 882,750

Acquired during marriage:

For exclusive personal use 35,310 47,080
82,390
From own industry 341,330 588,500 929,830
Donated properties received 353,100 353,100

Inherited properties 470,800 70,620 470,800

Fruits-inherited property 94,160 70,620 164,780

2436390 42. Under ACP, Gross estate of Mr. Barnabas is how much? 623810+1812580
623810 43. Under ACP, Total separate property of Mr. Barnabas is how much?
23540+35310+470800+94160
1812580 44. Under ACP, Total common property of the spouses is how much?
882750+929830
1177000 45. Under CPG, Total common property of the spouses is how much?
82390+929830+164780
823900 46. Under CPG, Total separate property of Mr. Barnabas is how much?
 7020000 47. Mr. Shin, a married non-resident alien, died leaving the following properties:
P1,170,000 car in the Philippines inherited by Mr. Shin during marriage; P5,850,000 stock
investment in the Philippines, inherited by Mr. Shin; P2,925,000 land & building in Japan from
salaries of both spouses; P3,042,000 business interest in Hong Kong, from fruits of stock
investments in the Philippines. How much is gross estate? 1170000+5850000
1170000 48. How much is gross estate if reciprocity applies?
153000000 49. Mr. Nori, a Japanese residing in Osaka, died leaving the following properties:
Mr. Nori’s separate property in Tokyo – P36,000,000; Mr. Nori’s separate property in Osaka –
P24,000,000; Mrs. Nori’s separate property in the Philippines – P6,000,000; Common property
of Mr. & Mrs. Nori in the Philippine – P21,000,000; Common properties of Mr. & Mrs. Nori in
Japan – P72,000,000. If Mr. Nori is resident alien, how much is gross estate?
21000000 50. How much is gross estate of Mr. Nori?

TAX: CHAPTER 14 (QUIZ)

TRUE 1. Unpaid property tax on family home (FH) shall be deducted from common
properties even if FH is separate property.
TRUE 2. Unpaid loan receivable from a bankrupt customer is deductible under the caption
“claim against insolvent person”.
FALSE 3. All items of deduction (without exception) must be supported with documentary
evidence to be deductible.
TRUE 4. Vanishing deduction can be claimed only by resident and citizen decedents.
FALSE 5. Family home deduction under TRAIN is P1M.
FALSE 6. All ordinary deductions (without exception) will diminish the amount of inheritance.
FALSE 7. For purposes of vanishing deduction, if the donated/inherited property is
transformed into another kind of properties, deduction is no longer allowed.
TRUE 8. Non-resident aliens can claim special deduction under the TRAIN law
FALSE 9. Ordinary deductions are presumed to be against exclusive properties for married
decedents.
TRUE 10. Losses allowed as deductions from gross estate pertain to those losses during
estate settlement not compensated by insurance.
FALSE 11. Mortgage constituted after decedent’s death which remains unpaid when estate
tax deadline comes is deductible.
FALSE 12. The standard deduction of P5M under current regulations requires the
executor/administrator to substantiate the amount claimed as deduction.
TRUE 13. Initial basis is the initial value minus payment made by current decedent of any
indebtedness on property before his death.
TRUE 14. Accommodation loan is one contracted by a person in behalf of another person.
 TRUE 15. Under the old law, judicial expenses can be claimed whether estate is judicially or
extrajudicially settled.
FALSE 16. Transfer for public purpose by non-resident aliens are deductible whether
property is inside or outside Philippines.
TRUE 17. Train law does not include funeral expenses as item of deduction from gross
estate.
TRUE 18. An item of deduction must be part of the gross estate to be deductible therefrom.
TRUE 19. Obligation contracted for children’s education shall be deducted from common
properties.
TRUE 20. When family home is an exclusive property of surviving spouse, no family home is
to be reflected in gross estate of the decedent.
TRUE 21. No deduction shall be allowed in the case of non-resident alien decedent, unless
the executor, administrator or anyone of the heirs, as the case may be, includes in the return
the value at the time of the decedent's death that part of his gross estate not situated in the
Philippines.
FALSE 22. Transfer for public use is a special deduction.
FALSE 23. Obligations including taxes settled before death or accruing after death are
deductible from gross estate.
FALSE 24. Judicial expenses are among the deductions allowed under Train law.
FALSE 25. Loss of separate property is a deduction from common property of the spouses.
TRUE 26. For unpaid mortgage to be deductible, value of decedent’s interest in the
property mortgaged must be included in gross estate.
FALSE 27. Only married decedents can claim deduction for family home.
TRUE 28. Initial value is the fair value (FV) of property at prior decedent’s death or its FV at
current death w/c ever is lower.
FALSE 29. If the decedent died four years from gratuitous receipt of property, vanishing
deduction is 20%.
TRUE 30. Obligations of the exclusive properties of the surviving spouse cannot be claimed
as deductions from the decedent’s estate.
FALSE 31. The deductible share of the surviving spouse of non-resident alien decedent shall
be computed out of world or global common properties.
TRUE 32. Benefits under RA4917 is commonly treated as a special deduction because it is
normally deductible by citizens or residents.
TRUE 33. Family home includes the dwelling house including the land on which it is built
FALSE 34. Transfer of property for public use must be decided on by the administrator in the
case of intestate succession.
TRUE 35. Some deductions from gross estate for estate tax purposes do not diminish the
amount of inheritance the heirs will receive.
 TRUE 36. Special deductions are items that do not reduce the inheritance.
TRUE 37. Benefits under RA 4917 pertain to amounts received by heirs from employer as a
consequence of decedent’s death.
TRUE 38. Under the TRAIN Law, citizens, residents & non-resident decedents can claim
standard deduction.
TRUE 39. Share of the surviving spouse pertains to the interest of the surviving spouse in
the net common properties of the spouses.
FALSE 40. Property previously taxed is a special deduction.
2700000 41. A decedent died leaving a family home of this children: Lot (separate property
of decedent) – P900,000; House – common property – P3,600,000. How much is deductible
family home? Lot (separate) 900000 + House (3600000x50%) 1800000 = 2700000
850000 42. How much is the correct amount of deduction as “claims against the estate”?
Pedro died in 2018. The following claims against Pedro’s estate were claimed by his heirs as
deduction from his gross estate:
Notes payable (notarized) 500,000
Unpaid property taxes before his death 300,000
Unpaid property taxes on his estate (after death) 100,000
Unpaid funeral expenses 75,000
Unpaid medical expenses 125,000
Unpaid mortgage on his properties before death 50,000
Debts from gambling losses 50,000
FALSE 43. Pedro died in 2018. At the time of his death, he has a collectible sum of
P1,000,000 from a debtor who was subsequently declared by a court as insolvent for having
total liabilities of P4,000,000 against his total properties valued at P800,000 only. How much
may be claimed as deduction from the gross estate of Pedro?
Amount of claim 1000000
Less: portion collectible (800000/4M) x 1M 200000
Claim against insolvent person 800000
1000000 44. How much collectibles should be included in the gross estate of Pedro?
9500000 45. The fair market value of the family home which is partly exclusive and partly
common follows:
Family lot (exclusive to decedent) P5,000,000
Family house (common) 9,000,000
How much is deductible family home? Land 5000000 + House (9M x 50%) 4500000 = 9500000
2560000 46. An unmarried non-resident alien decedent died with the following gross estate
& deduction details:
Philippines Abroad Total
Family home P- P3,200,000 P3,200,000
Other properties P6,000,000 5,800,000 11,800,000
Gross estate P6,000,000 9,000,000 15,000,000
Claims vs. estate 400,000 3,100,000 3,500,000
Losses 500,000 900,000 1,400,000
TFPU 600,000 700,000 1,300,000
Data of properties abroad are in pesos equivalents already.
Total ordinary deductions allowed in the Philippines is how much?
2940000 47. Net taxable estate in the Philippines is how much?
Gross Philippine estate 6000000
Less: Allowable ordinary deductions 2560000
Net 3440000
Less: Standard deduction allowed 500000
Net taxable Philippine estate 2940000
1003800 48. Mr. Young, died single, leaving properties inherited 2 ½ years ago with current
fair market value of P5,600,000. The property was inherited when it was worth P7,000,000 &
had P5,950,000 unpaid mortgage. Mr. Young paid P3,850,000 until his death. Other properties
Mr. Young had a fair market value of P64,400,000 at the time of his death. LIT & TFPU totaled
P3,080,000. How much is vanishing deduction?
60916200 49. How much is net taxable estate?
4212000 50. An NRA died w/PH gross estate (GE) of P36M & foreign GE of P54M. The pro-
rated LIT & TFPU against PH estate is P14.94M. The PH GE includes P9M property inherited 2
years ago at P10.8M. How much is vanishing deduction?
Initial Value 9000000
Less: Mortgage payment 0
Initial basis 9000000
Less: Prorated LIT & TFPU(9/36 X 14.94M) 3735000
Final basis 5265000
x 80%
Vanishing deduction 4212000