You are on page 1of 6

cPA Revieur ttffilij.

tfte PhtirFprnes
ESTATE rAxArlON xlera Crwz r rle vera tr,opez
6,21,28,29,31,32*,33,34,36,37,42,43,48,49,50

D 1. This is not part of the coryugal properly


a. Those acquired by onerous title during the maniage at the expense of the ccrnmon frrnd
b. Those acquired by industry or work of either ofthem
c. The fruits, rents or interests received or due during the marriage coming from the oonjugal property or
from the exclusive properties of the spouses.
d. Those acquired during the marriage by gratuitous title
D 2. This is not part ofthe gross estate of the decedenl
property
a. Conjugal c. Share of the surviving spouse
b. Community property d, Exclusive property of the surviving spouse

C 3. Under the absolute comrnunity of property, jewelry f,or personal & ex.clusive
wife shall belong to use of the
the yung personal stuff ni wife, exclusive yun except jewelries..
a. wife b. husband c. husband and wife d. children

D 4. The estate should be valued at the tirne


a. The heirs are ascertained c. The estate is ready for dislribution to the heirs
b. The esta{e tax is paid d. Cf dr:ath,sf tire dscedent

A 5. The estate may slaim a standard deduction of


a. PI,000,000 b. P2,000,000 c, F200,000 d. P500i000
I

B 6. A made the foilowing transfers inter-vivos:


Ts B. rqe lbD TP E
Cost Pi00,000 P100,0S0 P100,CI00 P100,000
FMV, time of transfer 140,000 L00,000 100,000 I 80.000
Consideration received 100,000 i40,000 8C,00dJ i 10,000
FMV time of death of A 120,000 200,(t00 70,0(}0 90,000
The amount to be included in the gross estate of A is
a.P 160,00t1 b. P100,000 c.Iji30,000 d. P110,000

A 7. Medical experlses, to be deductible, must be incurred by the decedent witldn


a. One year prior to his death r.. Twc ycars pri.or to his rleeth
b. One year after his death d. Three years prior tr: his death

C 8. The medical expense shall in no case exceed


a. P200,000 b. P400,000 o. P500,000 d. Pi,000,00

D 9. The amount of funetai expense that nray be,leducted- korn ti,e;t,:s.: estale i:;
a. 5o/o of the gross estate or P200,000 whichever is lovrer
b. Actual funeral expense or P200,000 whichever is lower
c. 5Ya of tho gross estate or the acfual funerai expenses whichercr is lr.rwer
d. 5% of the gloss estatc or the actual funeral expenses or P200,r100 wluE;krever is the lowest

C 10. One ofthe following is not an exemption or exclusion trom ihe gross estate
a. Capitai or exclusive profrerly of the surviving spolrse rr

b. Properties outside the Philippines of a non-resident Chinese Cecedent


c. Sharesof stock of San Miguel Corporation cf a rron-resident Msxican
d. The merger of usulruct irr the owner of the naked title

D 11. A died ieaving a fann land. In his wili, he transfbned ti:e orvnership tirerer:f trr il but subject to the condition
that C will have the right to use the lancl for a period of ten years iusuiruct). ln the seventh year, however, C
died and in C's will he surrendered his right over the land to B.
a. The lransfer is subject to donor'stax e. The fransf'eris botir an inclusion from the gross estate
b. The transfer is subject to estatetax d. The abovr: is a tax'.exennpf tran:;fer

D 12. Gross estate includes all his property, real or personal, tangible or in'.angible rvherel'er situated, excep
a. Resident citizen b, No*-resident citizen c.. Resident alicrn tl. Nau-resident alien
A 13. Written notice shall be given to the CIR if the gross estate excecds
a. P 20,000 b. P50,000 c. F100.000 d. P150,000

Items 14 through t7 pertain to the following infonnation:


Proceeds of life insurance shall be included in the gross estate if the beneficiary designated is:

C 14. The estate and the designation is


a. Revocable b Irrevocable
c. WheJher revoeable or irrevocable cl. Partly revocable, partly in'evocable

C 15. The executor and the designation is


a. Revocable b, Irrel'ocable
c. Whether revocable or irrevocable d Partly rovooable, paftly irrevooable
C 16. The adminisffator and the designation is
a. Revocable h. lrrevocable
c. Whether revocable or irrevocable d. Partiy revocable, partiy irrevocable

A 17. A person other than the estate, executor or adrdnistrator and the designation is
a. Revocable b. Irrevocable
c. Whether revocable or irrevocable d. Partly revocable, partly irrevocable
l

Items 18 and i9 pertain to the following information: I

If it rvill causs undue bardship on the part of the estate, the estate tax may be paid *ithl,
I

D 18. In case the estate is settled through the courts


i

a.2 years b. 3 years i. ,+


]rear'; c. ) years

A 19. In case the estate is settied rvithout court's intervention I

a. 2 years b. 3 years c. 4 years d. 5 yeais


i

B 20. From the time of death, notice of death should lre given within
a. One month b. 2 months c. 3 months d. 6 nnohths

B 21. As a rule, estate tax return shouid be filed under oath. if the gross estatr exceeds
a. P 100,000 b. P200,000 c. P500.000 d. P1,000,000
Kapag 200K-filed under oath.. 2M-duly certified by a CPA..
D 22.If t&re estate oonsists cf, registrable property, such as real propers, rnctor velucle, shares of stook or other
similar properly frcrn 'uhieh a ctrearance frcm the BiR" i.s required as a cc,nditicin for the transfer of
o*n"rrhip, an estrrte tax retum should be filed under oath I

a. If tbe gross estate exceeds P200,000 c. If the gross estate *xceed*q Pl,000,000
b. If the gross estate exceeds P500,000 d. R.egarcllesr of the value of the $oss estate
i

B 23. The estate tax retr-rrn shall be supported with a statenterrt duly o*rii{iert by a CPA if thelgross estate exceeds
a. P1,000,000 b. P2,000,000 c. P5,000.000 d. Pi0,000,000

C 24. From the decesjents' deatir" the estate tax retrrrn shall bs fi"lsd w.thilr.
a. 2 montls b.3 months c. 6 rnonths ql. 18 months

A 25. The CIR, in meritrrrious ca$es may g-rent a reasonal:le extension to frl* xh"e retum, not exceeding
a. 30 days b. 60 days c. 3 months d. 6 months
F
26. Fruits and incomr: of,exclusive propery*, shall belong to ttre sp$r.rses only if Conj.Partn.of Gains
F- Donations
- made by the deeedent during triferime but to take effect upon iris death shall be exempt from
estate tax.
a. True, true b. T'rue, false c. Falsc, true d. F"alse, false
F
27. - Property brought to the urarriage by either spouse shall belcng to both spouses. only if Abs.Community
T
-- The share of r"lre surviving spouse in the conjugel properSr is pari.'cf th* gross estate of the decedent
a. True, true b. True, false c. Iialse, true d. False, false
D 28. Which of the following statements is not correot in succession?
t.
Legitimate children share equally in their legitime of % of the net distributable estate
b. When the spouse survives with one legitimat child, the legitime of the spouse is % of the net
distributable estate
c. Wtien the spouse sunives rvitir wo iegitirua-te children, the legitime of the spouse is % of the net
distributable estate
d. The legitimes of the legitimate and illegitimate ohildven take precedence over the legitime of the
surviving spouse

D 29F. -Taxation of the estate shall b,e governed by the statute or law in force at the time of XXXXXXX
distribution of the
XXXX
estate to the heirs at the time of DEATH of the DECEDENT..
- Succession takes place upon the determination of the respective share of the heirs in the estate of the
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
F
decedent upon death..
a. True, true b. True, false c. False, ffue d. False, false
T
30. - The family home includes the holrse and the lot where the house stands
F
-- The value of the house and the lot where it stands, if a Family Home is deductible ftom the estate of the
dEoedent deductible only upto 1M
a. True, true b. True, false c. False, true d" False, false

F of th9 spouses Abs.Comnty


31. - When exclusive property is sold during the mamage, the proceeds become property
F
.. The tegal heirs df td. decedent must bi detenrdned first before the correct estate tax can be
ascertained
a. True, true b. True, false c. False, true d. False, false

F
32. Under the absolute ccrnnnnurrity' of property, prorterfy acquired before marriage by either spouse including
-
fruits and income, if any shall belong to botlt spouses only if no former marriage..
of the wake,
F-- The cost of burial ploi, tombstone, monument or mausoleum, mourning apparel, exFenses
and notices are deeluctible'{iom gross estate as funeral expenses only upto 200K
a. True, true b.'irue, false c. False, true d- False, false

F Expenses incurred for the performance of the rites and ceremonies incident to interment and those
33. - before
after interment, such as prayers, masses and entertainment are part of funeral expense'
incurred XXX
F-- The administator or eNecutor shall submit a statementXXXXXXX showing the disposition of the proceeds of the loan
if the claims against the estate rvas contracted withjn five years before the death of the decedent' within 2
a. True, true b. True, false c. False, true d. False, false years..
Kapag >2 yrs na, dapat may substantiation..
before marriage it vrill belong to both spouses while if it is inherited during
F
34. - If the property is inherited ___________
marriage it is exclusive. both spouse if Abs.Community
F -- Unless stipulated, the properiy relations shall be govemed by conjugal parhrership of gains for marriages
on Aug. 3, 1988 = ABC
celebrated_________
on or before Aug. 3, 1988.
before Aug 2, 1988 = CPG d- False, false
a. True, true b. True, false c. False, true

Unless stipulated, the propertv reiotions shatl be go'verned by absolute community of property for
T
35. -
marriages celebrated on or____
after August 3, 1988
use of either
F -- Under tl* ,"gr*" of absolute .o**lnrity of property, property for personal and exclusive
spouses except jewelry shall belong to both spouses'
a. True, true b. '['rue, false e. False, true d. False, false

36. Statement 1 The court may authorize the distribution of estate, to an heir if irl its sound discretion
it
-
F believes that the heir badly rreeds his share.
of BIR withdraw
T Statement 2 The adnninistrator or any of his heirs, may however upon authorization
-
from tfle decedent's bank deposits P20g00 without the riquired certification that the estate tax has been
paid.
a. True, tnre b. True, false c. False, true d" False, false

37. Statement Unpaid mortgage indebtedness is deductible from the gross estate provided the said property
I-
F r"bJ".t t" th. inde|tedness ii included in the gross estote, XXXXXXXXXXXXXXXXXXXXXXX
net of the mortgage indebtedness' -
inter-vivos by the dicedentto the Fhilippine government few months before his
F Statement 2- A donation ________
deduction from the gross estate
death is a XXXXXXX donation mortis causa is included in GE.
a. True, true b. True, false c. False, true d. False, false
38' Statement I * A died grving B power to appoint & persotr who will inherit A's house
and lot. B however
F can ___only choose among C, D, E and F. B decided to transfer the property to C, in B's will when he
was old
already. The hansfer from B to C is subject to estate tax limited 'to
$tatemenl 2 * During A's lifetime, he decided to give B as gift his car subject to the condition tl,t if B
F does not bscome a CPA within
three years, A shall ievoke t&e-transfer. In the second year however, A died.
The car can no longer fomr part of A,s gross estate.
a. True, true b. True, false c. False, true d. False, false
B 39. A decedent left the following properties: NRC NRA NRAw/o
Land in Italy (with PIM unpaid mortgage) P 2,000,000 +
Land in Laguna, philippines LOWER AMT. 500,000 **
Franchise in USA
100,000 +
Receivable from debtor in philippines 70,000 + +
Receivable from debtor in USA 100,000 +
Bank deposits in USA 90,000 +
Shares of stocks of PLDT, philippines
75,000 + +
Shares of stocks ofABC, foreign corporation 7-co af tnebusiness in the philippines 125,000 +
Other personal properties assume w/in the Philippines 300,000 + + +
Zonal value of the land in Laguna HIGHER AMT.750,000 + + +
If the decedent is a ______________
non-resident c*izeqhis gross estate is 3600 1195 1050
a. P3,650,000 b. P3,600,000
all properties worldwide c. F2,500,000 P2,650,000
tapos tax d.credit na lang yung iba..
A 40. Using the above data, if the decedent is a non-resident
alien, his gross estate is
a. P1,195,000 b. p94S,000 c. p1,320,000 d. p1,070,000

A 4i. If in the preceding number reciprocity law can be applied the gross estate is
a. P1,050,000 b. p1,195,000 c. p1,250,000 d. p1,070,000

B 42' Based on the above problem but assuming that the PLDT shares of stocks are not listed
in the local stock
exchange, and there are 1,000 shares at the time of death, the company's outstanding shares were 10,000
shares. Its retained eamings was P2,000,000, par value per share ** pSb. The gross should show the
said shares at If FV is missing, use BV.. "itute
a. Still at P75,000 b. P250,000
2000(RE) x 10% + 1K shares x 50 PV
c. P200,000 d. P0
= 250K
43. A, Filipino, widower, died leaving the following: GE ELIT SplDeductn
a. Real properties GE 7200 P 4,000,000 4000
b. Familyhome Unpaid exp -800 1,200,000 1200 -1000
c. Personal properties Estate tax -344 2,000,000 2000
d. _____
Paid medical pxpense Distributable = 6056 600,000 -500
e. Allowable deductions 900,000 -800
a) Determine the net estate subject to tax. b) Net distributable estate StdDeduc -1000
3900K 6056K =7200 -800 -2500 = 3900 Net Estate
44" A, Filipino, married, died leaving the following: C E SplDeduc 344 Estate Tax
a. Real property- cor{ugal p 4,000,000 4000
4000
(A)
b. Real property - exolusive 2,500,000
2500
c. Family home - exclusive(A) I,200,000
1200 -1000 +2500
d. Unpaid medical expenses 600,000
-500
+1200
e. Allowable dedugtions -cor{ugat 1,400,000
-1400 -1000 Standard
estate -600
estate
a) Determine the net ta:rable =2600/2=1300 +3700
b) Net distributable estate
-2500 = 2500 Net
-1300*
2500K 4210K 190 Tax Due
45. C, Filipino, married to D, died leaving the following: C E Spl Deduction -190
a. Real properties- coqiugal P 4,000,000 4000 =4210
b. Real property - exclusive (C) 1,800,000 1800
c. Family home - exclusive (D) 1,400,000 X X
d, Allowable deduction- cor$ugal 1"200,000 -1200
Deterrnine the net taxable estate =2800/2=1400 +1800 -1000STD = 2200 Net Estate
46.8, Filipino, married ro Ii, dred leaving the following: C E
a. Real properties - corgugal P 5,000,000 5000
b. Real property - exclusive @) 1,200,000 1200
c. Real property - exn:lusive @) (Lot where the fannily home stands) 400,000 +400 FH
d. Family home- c*iljrlgal 1,000,000 1000FH
e. Allowable deductions - conjugal 1,600,000 -1600
Determine the net taxahle estate. 1900K =4400/2= +2200
-500FH
47. G,Filipino, married to H, died leaving the following: C E -400FH
- conjugal
a. Real properties 7000 P7, 000,000 -1000STD
b. Real prope4y- exclusive (G) 1400 1,400,000 = 1900
c. Real property* conjugai (lot where the farnily home stands)
800FH 800,000
d. Family horne - exclusive (G) 1800 1,800,000
e. A-llowable deductions - conjugal -2400 2,400,000
Determine the net tanable estate 3900K -5400/2= 2700
-1000FH - 1000STD = 3900
48.IvIr. A, Filipino, married. died on January 1, 2011 survived by his wife and 2 legitimate children by a
former marriage and a legitirnate child with his present rruife, leaving the following:
il. Property inherited from lds father who died January 2,2A07.
1) Agricultural land Exclsve P ;!.,800,000
2) Residential land Exclsve 3,000,000
b. Property inherited from his mother who died on Nov. 1, 2000, one day after Mr. A's marriage to his
present wife
l) pond
Fish Exclsve P 1,200,000
2) Jewelry Exclsve 1,000,000
c. Properly acquired thru Mr. A's labor:
1) Residential house andlot used as fhmily home F 1,900,CI00
2) Motor vehicles 800,000
3) Commercialland 4,000,000
4) Cash 2,000,000
The agricultural land and residential land were previously mortgaged for P800,000 when inherited where
P450,000 was paid by Mr. A during lifEtime. The ccrnmercial land has a mortgage of P1,000,000 of which
P600,000 was paid by Mr. A before his death. Mr. A by will bequeathed to the City of Manila for
exclusiveiy public pu{pose t}re suin of P200,000.
The estate claimed the following expenses:
a. Funeral expenses P 250,000 e. Claims against the estate 150,000
b. Judicial ex.penses 100,000 d Medical expenses 400,000
Determine the net taxable estate

49. Z, a resident citizen. died leavingtho tbllowing:


Net estate @etbre standard deduction):
Philippinr:s P 5,C00,0CI0 => 4.5M
usA 3,000,000 => - 2.7M 1065
Austalia ____________
2,000,000 => - 2M x3/10 = 319.5 vs 280 -280
Estate ta"x paid: 10M-1M=9M => 1065 x 2/10 = 213 vs 220 -213.33
usA 290,000 =547.66
Austalia 220,000
Determine the estate tax due after tax credit.

50. Mr. Y, an A,rnerican, single and residing in USA, 6i"6laving the following:
Land in Makati (200 + 100 + 120) = 420 x 5/10 = 210 P 2,000,000 2000
Land in Manila 1500 (lower) - 0= 1500 x (210+2000)/5000 3,000,000 +3000
Gross e$tate, USA =663 5,000,000
Deductions claime"d by the estate: 1500-663 = 837 x 20% 167.4 Vanishing deduction
Actual frureral expose 2400(lower) -400 =2000 Initial basis x 2210/5000 200,000
Judicial expenses =884 100,000 -210
Claims against the estate 2000 - 884 = 1116 x 40% = 446.4 Vanishing deduction120,000 -2000
Transfer of the land in Makaii to the Philippine government (in decedent's will) 2,000,000 -167.4 -446.=2176.2
o The land in Manila wken inherited 3 L/zyearc ago had a vaiue of P2.400,000 $rith a mortgage thereon of P400,000
which was paid prior to lvIr. Y's death.
r The land in Maka4 when inherite d4'/zyea* ago has a value of P1,500,000.
Determine the net eslate subjecl to estate tffi" 2176.2
5l' Mr. A, Filipino, married to B with u&om he has two chiidren died on February 14,2011. The inventory of
the properties of the spouses show the following:
a, House and lot in Manila owned by A before the marriage P 3,000,000
b. Agricultural land ovrmed by B before the marriage 1,200,000
c. Real property acquired during marriage 2,000,000
d. Family home acquired during marriage 2,200,000
e. Personal property acquired during marriage 1,400,000
f. Commercial building in Makati inheritedhy A during marriage
from his father who died on February 14,l9g7 2,000,000
g. Apartnent house inherited by B during merriage from her mother who
diedonFebruary 14,2003 4,000,000
h. Proceeds of life insurance where rhe estate of A was designated as the
irrevocable beneficiary 1,000,000
i' Proceeds of life insurance where B was designated as the irrevocable beneficiary 2,000,000
Deductions claimed by the estate:
L Legacy Stven in favor of Philippines goveiltment in decedent's will P300,000
2. Claims against the estate 100,000
3. Unpaid mortgage on agricultural land (etter b above) 400,000
4. Funeral expenses 1g0,000
5. Judicial expenses SS = 2860 600,000
Determine the estate hx due and payable Net Estate = 5560

52. Mr. O, Filipino, married, died on Dec. 31, 2012, tiuee years after his marriage to Mrs. O. He left the
following: Dec. 31, 2009 mrriage
a. Property inherited by Mr. O from his father who died February 14,ZO07 P3,000,000
b. Property inherited by Mrs. O from her father w'ho died February 14,200& 1,200,000
c. Property inherikd by Mr. O from his motlr.er rlrrc died February 14,2009 1,800,000
d. Property inherited by Mrs. O from her mother *iro died February t4,2Al0 1,400,000
#52 Father F-inlaw Mother Marriage M-inlaw Death
e. Property acquired thru the labor of
'07 '08 '09 12.31.09 '10 12.31.12
Mr. O 2,000,000
3M 1.2 1.8 14
Mri. O 1,500$oo
ACP C C C E
Mr. & Idrs. 0 (farnily home) 2,400,000
f. Other personal property
CPG E
VD*TB =1.8
E E E
1,600,000
Deductions claimed by the estate:
-18/123 x 1.130
a. Funeral expense 220,044
=1,634,634 x 40% = 653,854
b. Unpaid mortgages on property in letters:
a. 500,000
b.300,000 c. 180,000 d.200,000
c. Claims against tle estate b is not included in CPG 170,000
d. Acorued tores (before the death of Mr. O) 80,000
Determine the net tmoble estate, assuming
1. conjugal partnership of gains 2. Absolute comrnunity of property

ESTATE TAX
If the net estate is The tax shall he Plqs Ofexcess over
Ovel But not over
P 200,000 Exempt
P 200,000 500,000 5% P 200,000
500,000 2,000,000 P 15,000 8% 500,000
2,000,000 5,000,000 135,000 llo/o 2,000,000
5,000,000 10,000,000 465,000 15% 5,000,000
CPG 10,000,000
Excl
Comm Total 1,215,000 ACP 2A% Excl Comm 10,000,000
Total
GE 3 2+1.5 GE 3+1.2+1.8
1.8 2.4+1.6 Tke End 2+1.5+2.4+1.6
=4.8 + =7.5 12.3M =0 + =13.5 13.5M
Ord-ELIT -0.5 -0.2 Ord-ELIT -0.5-0.2-0.18
-0.18 -0.17 -0.3-0.17-0.8
Ord-VD -0.653804 -0.8 Ord-VD -0.858312
=3,466,146 + =7050K 10,516,146 =0 + =11,211,688 11,211,688
Spl-FH -1M Spl-FH -1M
Spl-STD -1M Spl-STD -1M
Spl-MED -3.525 = 4,991,146 Spl-MED -5.5605844 =3,605,844
'Tqt 1d 11 6