FRANCISCO, Danica Mae E.

BSLM 3-1
Assignment #2
I.
Answers:
1. The properties that included in Twinkle gross estate are Php 1,
000,000.00 cash in the vault located in the apartment, shares or
stock in Pharangmally Corp., a corporation organized it’s business
in China and House and Lot in Morocco because the executor or
trustee will calculate the gross estate, which will reflect the value
of the person's property and other assets at the time of death.
This will include things like money, real estate, stocks,
investments, and personal items. Real property, whether located
in the state of residence or out-of-state, owned by the decedent
on the date of death, is includable in the gross estate. Common
types of real property interests are: a personal residence, a
vacation home, rental property or a condominium. According to
National Internal Revenue Code of the Philippines Title 3, Section
85 The value of the gross estate of the decedent shall be
determined by including the value at the time of his death of all
property, real or personal, tangible or intangible, wherever
situated: Provided, however, That in the case of a nonresident
decedent who at the time of his death was not a citizen of the
Philippines, only that part of the entire gross estate which is
situated in the Philippines shall be included in his taxable estate.

2. No, Because It stated in the NIRC that only a Filipino citizen can
get the gross estate tax because You can sell your assets during
your lifetime to your intended heirs or beneficiaries. Turnover to
 your heirs. You can also turn over your assets to your beneficiaries
while you’re still living. Get insurance. In the case of a non-
resident alien decedent, however, only that part of the entire
gross estate which is situated in the Philippines is considered in
computing the gross estate. In comparison, in the case of a
resident alien decedent, the entirety of the worldwide assets
forms the gross estate for Philippine estate tax purposes. The
following intangible properties are expressly given Philippine
sites: (a) a franchise that is exercised in the Philippines; (b) shares,
obligations, or bonds issued by a Philippine company; (c) shares,
obligations, or bonds issued by a foreign corporation with 85% of
its business located in the Philippines; and (d) shares, obligations,
or bonds issued by any foreign corporation if any of such
issuances have otherwise acquired a business sites in the
Philippines. These intangibles can be excluded from the gross
estate based on concepts of reciprocity where the country of
citizenship and residence of the alien decedent does not impose a
similar tax on, or granted an exemption from, such similar tax to
Philippine citizen decedents who are not residents of that
country.

ll.
Answer:
Yes, The value of each property included in the gross assets of a
deceased person under sections 2031 to 2044 is its fair market value
at the time of the deceased person's death, unless the executor
chooses the alternative valuation method. to that provided for in
section 2032, is the fair market value thereof on the date and with
the adjustments provided for in that section. Fair market value is the
price at which the property would change hands between a
consenting buyer and a consenting seller, without being required to
buy or sell, and both with reasonable knowledge of the relevant
facts. The fair market value of a particular property included in the
deceased's gross estate should not be determined by a forced selling
price. Nor should the fair market value of an item of property be
determined by the selling price of the item in a market other than
that in which that item is most commonly sold to the public, taking
into account, where appropriate, the location of the item. article.
Therefore, in the case of real property included in the deceased's
gross assets, which is generally obtained by the public in the retail
market, the fair market value of that property is the price at which
the property or comparable property would be sold. retail.