ESTATE TAXATION

PRACTICE PROBLEMS

PROBLEM 1
Aldo died leaving the following properties:
a. Real property in Baguio City brought into marriage P 300,000
b. Income of real property in Baguio 60,000
c. Real property in Cebu City, brought into marriage by wife 240,000
d. Income of real property in Cebu City 25,000
e. House in Pili, Camarines Sur, acquired by Aldo during marriage 375,000
f. Income of house in Pili 50,000
g. Real property in Iloilo City, earned by wife during marriage 225,000
h. Income of real property in Iloilo City 80,000
i. Tangible personal properties in Manila, inherited by Aldo during marriage 500,000
j. Income of properties in Manila 175,000
k. Intangible personal properties in Singapore inherited by wife during marriage 430,000
l. Income of intangibles in Singapore 85,000
m. Tangible personal property in Dagupan City,inherited by Aldo before marriage 20,000
n. Income of property in Dagupan City 10,000
o. Intangible personal property in Canada, inherited by wife before marriage 350,000
p. Income of personal property in Canada 85,000

1. under the conjugal partnership of gains, the total conjugal properties of the spouses is:
2. under conjugal partnership of gains, the gross estate of Aldo is
3. under absolute community of property regime, the total community property of the spouses is:
4. under absolute community of property regime, the gross estate of Aldo is

PROBLEM 2
The following expenses and obligations were left by Boning upon his death

Notes payable, not notarized 30,000

Loans payable, PNB 300,000
Accounts receivable, debtor not insolvent 40,000
Accounts receivable, debtor is insolvent 60,000
Death benefits from employer 200,000
Mortgage paid 50,000
Income taxes on income of decedent’s estate 7,500
The total amount deductible from gross estate is

PROBLEM 3
Wilson died of a car accident. He died intestate (WALANG WILL) on October 10, 2019, survived by his wife, Ging and a
son.

Exclusive Properties of WILSON: Exclusive Community Total

Car 1,400,000 Gross estate: 4,200,000 9,230,000 13,430,000
Lot in Quezon City 2,000,000 Ordinary 415,000 415,000
Deductions
Other real and personal properties 800,000 Gross estate b4 4,200,000 8,815,000 13,015,000
special ded
Conjugal properties of the spouses: Standard ded 5,000,000
House and lot in Laguna, family house 5,000,000 Family home 2,500,000
Cash on hand and in bank 3,000,000 Net estate 5,515,000
before SSS
Other real and personal properties 1,000,000 SSS 4,407,500
Receivable as prize in a raffle sponsored 50,000 NTE 1,107,500
by PICPA
Receivable from an insurance company 150,000 ESTATE TAX 1107500*.06 66,450
where the son, Gino, was designated as a DUE
revocable beneficiary. The premiums were
paid out of the conjugal funds

The following deductions were claimed:

Funeral expenses 195,000 NI
Judicial expenses 15,000 NI
Claims against the estate, not notarized 50,000 NI
Claims against insolvent persons 30,000 ✓
Unpaid mortgage on other real properties (contracted for the benefit of the conjugal 200,000 HINDI NA CLAIMS
property) (NI)
Unpaid mortgage on house and lot in Laguna (the proceeds of which did not redound 350,000 ✓
to the benefit of the family)
Accrued income taxes 35,000 ✓
Income tax on income earned from October 11 to Dec 31, 2019 7,500

1. Compute the estate tax due based on the given data. 66,450
2. Compute the estate tax due if the deposits was withdrawn prior to the filing of tax returns. 0