31.

Statement 1: The P5,000,000 standard deduction for estate tax purposes is a short-cut, legal
mechanism to further exempt the less privileged estate and heirs 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.

a. Statements 1 & 2 are false

b. Statement 1 is true but statement 2 is false
c. Statement 1 is false but statement 2 is true
d. Statements 1 and 2 are true

Family Home
32. Statement 1: The maximum amount of deductible family home from the gross estate is
P10,000,000
Statement 2: If the family home is exclusive property of the surviving spouse and has a current
market value of P10,000,000, such amount is not subject to estate tax.
a. Statements 1 and 2 are correct
b. Only statement 2 is correct
c. Only statement 2 is correct
d. Statements 1 and 2 are incorrect

33. Only-one statement is correct? A deduction for family home

a. Shall be allowed if the family home is in the Philippines.
b. Shall be at a maximum of P10,000,000, based on cost.
c. May be allowed for two family homes (one in the city and another in the province), both in the
Philippines and with certifications of the barangay captains.
d. Shall be deducted at lesser than P10,000,000 if, with vanishing deduction and unpaid mortgage or
indebtedness, the value of the family home is already reduced to zero.

34. A resident citizen had family home in the Philippines. He worked abroad and was temporarily absent
from his family home when he died. Which of the following statements is correct?
a. The decedent would not be allowed family home deduction because he was abroad when he died.
b. The decedent would not be allowed family home deduction because he was a nonresident citizen
when he died.
c. The decedent would be allowed family home deduction because actual occupancy of the family
home was not interrupted or abandoned because of his temporary absence.
d. The decedent would be allowed family home because all decedents were allowed family home
deduction.

Amount received under RA 4917

35. Which of the following statements regarding amount(s) received or receivable under RA4917 is not
correct?
a. Any amount received by the heirs from the decedent's employer as a consequence of the death of the
decedent-employee in accordance with Republic Act 4917 shall be included in the gross estate of the
decedent.

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 b. Any amount received by the heirs from the decedent's employer as a consequence of the death of the
decedent-employee in accordance with Republic Act 4917 shall be deductible from the gross estate of
the decedent.
c. Both a and b
đ. Neither a nor b

36. A decedent has one year left to complete 30 years of continuous service with his employer when he
died. His only heir received P1,500,000 as benefit under RA 4917. What should be the amount to be
included in the gross estate?
a. P1,500,000
b. Р500,000
c. P1,000,000
d. P0

37. Based on the preceding problem, what amount should be included as part of deductions from gross
estate?
a. P1,500,000
b. P500,000
c. P1,000,000
d. P0

Deductions for Nonresident Alien Decedents

38. One of the following is allowed as a deduction from the gross estate of a non-resident alien under
the Tax Code as amended by RA 10963 (TRAIN Law), but is prorated between Philippine gross estate and
the total or world gross estate
a. Losses, indebtedness, claims against the estate and taxes
b. Share of the surviving spouse
c. Vanishing deduction
d. Standard deduction

39. A nonresident alien decedent left the following assets:

Domestic shares P1,000,000
Foreign shares 3,000,000
Tangible personal property, Philippines 6,000,000
Losses, unpaid indebtedness and taxes 1,200,000

The country where the decedent is a citizen and resident does not impose transfer tax on transmission of
intangibles of Filipinos not residing therein. The taxable net estatę in the Philippines is
a. P3,800,000
b. P4,280,000
c. 4,780,000
d. P5,280,000

40. A nonresident alien died on March 10, 2018 leaving the following properties and deductions

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 Shares, domestic corporation P500,000
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

а. Р96,000
b. Р66,000
c. P1,500,000
d. P1,600,000

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