Taxation 2

1. Estate Tax
2. Donor’s Tax
3. VAT
4. Local Tax
5. Real Property Tax
Transfer Taxes
2 Types of Transfer Tax

1. Estate Tax

2. Donor’s Tax
Terms
Decedent – refers to the dead person who owns property

Estate – refers to the property of the Decedent

Conjugal property – refers to property co-owned by spouses

Capital Property – refers to exclusive property of the husband

Paraphernal Property – refers to exclusive property of the wife

Legitime – estate reserved for the mandatory heirs of the decedent

Heirs or Beneficiary or Legatee – refers to the successor of the

decedent

Bequest – a gift of personal property

Devise – testamentary gift of real property

Legacy – refers to any gift from the estate of one who has died
1. Decedent’s interest
2. Transfer in contemplation of death
3. Revocable Transfers
4. Transfer under General Power of Appointment
5. Proceeds of Life Insurance
6. Transfer for Insufficient Consideration
Ordinary Deductions

1. Funeral Expenses
2. Judicial expense of the testamentary
or intestate proceedings
3. Claims against estate
4. Claims against Insolvent persons
5. Unpaid mortgage
6. Taxes
7. Losses
BIR Form: 1801
END…