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  • Deductions From Gross Estate

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    Bea Blanco
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    This document outlines various deductions that may be taken when filing an estate tax return in the Philippines, including ordinary deductions like funeral expenses, losses, unpaid taxes/mortgages, and transfers for public use. It also describes special deductions such as the standard deduction, deductions for a family home and medical expenses. Details are provided on limitations and calculations for these deductions.

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    Deductions from Gross Estate

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    This document outlines various deductions that may be taken when filing an estate tax return in the Philippines, including ordinary deductions like funeral expenses, losses, unpaid taxes/mortgages, and transfers for public use. It also describes special deductions such as the standard deduction, deductions for a family home and medical expenses. Details are provided on limitations and calculations for these deductions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    25 views1 page

    Deductions From Gross Estate

    Uploaded by

    Bea Blanco
    This document outlines various deductions that may be taken when filing an estate tax return in the Philippines, including ordinary deductions like funeral expenses, losses, unpaid taxes/mortgages, and transfers for public use. It also describes special deductions such as the standard deduction, deductions for a family home and medical expenses. Details are provided on limitations and calculations for these deductions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Deductions

    ORDINARY DEDUCTIONS
    Funeral Expenses

    Judicial Expenses

    Losses

    Claims against estate

    Claims against insolvent person


    Unpaid mortgage

    Unpaid taxes before death

    Transfers for public use


    Vanishing Deductions

    SPECIAL DEDUCTIONS
    Standard Deduction
    Family Home

    Medical Expenses

    Under RA 4917

    SHARE OF SURVIVING SPOUSE

    Components
    Interment/Cremation
    Mourning clothes of family
    Wake expenses
    Death notices
    Rites for burial
    Burial lot, tombstone
    Executor or administrator
    Attorney
    Court
    Accountant
    Appraiser
    Clerk hire
    Preserve and distribute estate
    Store or maintain property
    Brokerage
    Robbery
    Theft
    Embezzlement
    Fire
    Shipwreck
    Storms
    Calamities
    Contract
    Tort or quasi delict
    Operation of law
    Part of gross estate
    Contracted in good faith
    Adequate and full consideration
    Part of gross estate
    Property taxes accrued
    Income received before death
    Gift taxes
    Exclusively for public purpose
    Died within 5 years of receipt
    Located in the Philippines
    Transfer tax actually paid
    No similar deduction
    Same property

    Dwelling house and land


    Permanent residence
    One family home
    Part of gross estate
    Incurred by decedent 1 year
    before death
    Retirement benefits from
    private firm
    Beyond control of decedent
    Part of gross estate

    Amount/Limit
    Lower
    Actual
    5% Gross Estate
    P200,000

    Actual

    Actual
    No insurance

    Actual

    Actual
    Actual

    Actual

    Actual
    Initial value = lower old or new
    FMV
    Initial basis = IV Mortgage
    Final Basis = IB Deduction
    Deduction = IB/GE * ELITE + TPU
    Rate = year between deaths or
    death and gift
    Vanishing Deduction = FB * Rate
    P 1,000,000
    Lower
    Current FMV
    P 1,000,000
    Lower
    Actual
    P 500,000
    Actual

    50% net conjugal or communal

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