Problem 1

Of the items below, indicate which were deductions before the TRAIN LAW, and which were deduction
under the TRAIN LAW, by answering YES or NO on the blanks at the right of the item. If the item is still
deductible, write on the blank at the right of it what is it that is new and/or your comments.
Before Now Change
Funeral expenses _________ _______ ______________________________
Judicial expenses _________ _______ ______________________________
Claim against the estate _________ _______ ______________________________
Claim against insolvent _________ _______ ______________________________
Unpaid mortgage _________ _______ ______________________________
Casualty loss _________ _______ ______________________________
Vanishing deduction _________ _______ ______________________________
Transfer for public use _________ _______ ______________________________
Family home _________ _______ ______________________________
Amount receivable by heirs
under Republic Act 4917 _________ _______ ______________________________
Standard Deduction _________ _______ ______________________________
Share of the surviving spouse
in the joint property _________ _______ ______________________________

Problem 2
Mr. R and child Mr. W, died in an accident. Mrs. R died one day after the death of Mr. R and the child.
With the following properties in the Philippines: Mrs. R exclusive properties of P5,000,000,
Mr. And Mrs. R, community properties of P19,300,000.
Mr. W, exclusive properties of P1,200,000
Is the estate of Mr. W subject to estate tax?
(a) Yes.
(b) No

Problem 3
The decedent was single at the time of death.
Tangible properties owned P5,000,000
Intangible properties owned 3,000,000
Claims against the estate 1,300,000
The net taxable estate?
Problem 4
Exclusive properties, including inheritance within the year,
at which time its value was P500,000 now P600,000 P4,000,000
Conjugal properties, including P200,000 GSIS
retirement benefit 6,200,000
Claims against the conjugal estate 1,300,000
Net taxable estate?
Estate tax?

Problem 5
The following are the requisites in order that claims against the decedent's estate may be deductible,
expert:
(a) They must be existing against the estate;
(b) They must be reasonably certain as the amounts;
(c) Then must have been prescribed;
(d) They must be enforced by the claimants.

Problem 6
Mr. A died with a receivable from Mr. B, Mr. B has properties worth P220,000 and obligations of
P320,000. Included in the obligations of Mr. B are P20,000 owned to the Government of the Republic of
the Philippines for the unpaid taxes and to Mr. A of P60,000.
The estate of Mr. A has deduction for claim against insolvent of:
(a) P60,000; (b) P41,250; (c) P20,000; (d)P 0;

Problem 7
Gross estate, Philippines P4,000,000
Gross estate, Country X 2,000,000
Claims against the estate, Philippines 2,000,000
Claims against the estate, Country X 1,000,000
Estate tax paid to Country X 40,000
Estate tax still due after credit for foreign estate tax paid?
Problem 8
Gross estate, if decedent was a resident or citizen?
Gross estate, if the decedent was a non-resident, not citizen?

Land in the Philippines P2,000,000

Land outside the Philippines 1,000,000
Car in the Philippines 500,000
Motorcycle outside the Philippines 200,000
Shares of stock of a domestic corporation 300,000
Shares of stock of a foreign corporation 200,000

Gross estate if the decedent was:

(a) A resident or citizen of the Philippines:
(b) A non-resident, not citizen of the Philippines

Problem 9
Decedent was a citizen of the Philippines
Property No. 1, inherited from the father within the year
Fair market value when inherited P500,000
Fair market value at death 350,000
Mortgage on the property when inherited 80,000
Mortgage on the property paid by decedent 30,000
Property No. 2, received as gift from mother
1 ½ years ago:
Value when received 400,000
Value at death 450,000
Gross estate which includes the properties above 6,000,000