ReSA: The Review School of Accountancy Page 6 of 8 | Salary of the husband, net of P50,000 withholding tax P 450,000 Sur atic enagee chica caterer ee Gross professional income, husband, gross of 15% withholding tax 1,500,000 > | {

oo.o00 Ie Expenses, leased common property i 200,000 Gross business income, Singapore (gross sales, P800,000) 600,000 este ecton cesta ‘0000 12. Estate and Trust ‘A married individual has three (3) qualified dependent chidren. Aside from the three (3) children, he is also supporting a brother, 25 yeas old, whois a person with cisabilty. He has the following data on income and expenses for the year 2014: b-non-residentctizen using temzed deduction. ec fecred ey (itor An inva taxpayer asked yout assist him nthe preparation his tax Furs income in 2018 He provides you the following information: oh Gross sales, Philippines ‘TMI E> 1,500,000 Cost of sales, Philippines SS 500,000 Gross sales, Japan 7,000,000 Cost of sales, Japan 2,000,000 Business expenses, Philippines 200,000 Business expenses, Japan 800,000 How much was the taxable income assuming the taxpayer was a 4. resident citizen, married and has six (6) qualified dependent children. 4,800, 070— . non-resident atizea, head of family with two (2)’Qualfied dependent brothers under optional standard “eduction. ¥s0,000 - . non-resident alien engaged in business, single (his country allows personal e Filipinos not residing in that country). "ge0,0c0 ~ a 4. non-resident alien not engaged in business, married with four (4) qualified dependent children (his country allows basic personal exemption of P40,000 to marred individuals and additional exemption of P10,000 for ingle each dependent child to non-resident alien including Filipinos in that country). (“/Srq.c0p- cea,c00 )_/,00.000| ~ ‘husband and wife, resident citizens, with one (1) qualified dependent child, had the following income and expenses for the year 2014. ‘The husband waived the addtional exemption in favor of his wife. Conor Hon mc wi le i ord and ev eid eer see / do 2.— How much was the taxable eof the husband and wife using optional standard deduction? Definition of estate | Estate refers to the mass of all property, rights and obligations of a person which are _____| not extinguished by his death. ? 2 b. Definition of trust ‘Trust isa right on property, real or personal, held by one party for the benefit of ____-___| another. . 13. Important Pointers on Estates and Trusts An estate sa taxpayer tis under selement oF adminicration d. Treatment of income JA trusts a tpayer if pdr the terms ofthe trust the duc must accumulate the income. ( ‘rroyecaly 2) Atrust isa taxpayer if under the terms ofthe trust the fiduciary may accumulate or distribute the income, in his discretion. Cierevecable. When's the income | 1) I under the term ofthe trust the title to any part ofthe corpus or principal of the Wisk | of the trust taxable to may be revested to.the arantor, the income ofthe part of the corpus or principal shall the grantor? be taxable to the grantor. Ceweebé ) Dusdis NT Granjor ~ be | 2) If under the term ofthe trust the income of the trust shall be applied forthe beneft of the grantor, the income that shall be applied for the benefit of the grantor shall be _taxable to the grantor. (nwecabile Bs = When an estate or a trust is a taxpayer, @ distribution of the year’s income to an heir or distribution of the year’s | beneficary is: income to h 1) A Special item of deduction for the estatejtrust; Salary, Philppines,oross of withholding tax of P5,000 P 160,000- | as —Gross business income, Phiippines 2) 500,000 > 35ee ls Business expenses, Pilppines z 20,000 “4, go ee eae yor thE oe Business expenses, USA ae ae 100,000 PEP: fae Compiiethe wianicnet VRE Nii basing tee ae 2. resident ctizen using optional stan gigo TU " THT decree beneficiary 2) _A'special item of income to:the heir/beneficiary.