SOLUTIONS MANUAL TRANSFER & BUSINESS TAXATION

2018 Edition By: TABAG & GARCIA

CHAPTER 4 – PROPERTY RELATIONS

PROBLEM SOLVING

P4.1

ACP CPG 1. C E 2. C C 3. C C 4. C C 5. C E 6. C C 7. E E 8. E C 9. C E 10. C C 11. C C 12. E E 13. C E 14. E E 15.

EE

Absolute Community of Property (ACoP) (a)P12,400,000; (b)P19,500,000; (c)P9,750,000; (d)P17,150,000

Exclusive Common Total Land inherited during marriage P24,000,000 Other personal property owned
before marriage P16,000,000 Other personal property acquired during marriage 5,000,000 Total
P24,000,000 P21,000,000 P45,000,000 Deductions: Casualty loss (500,000) Funeral expenses - Judicial
expenses - Unpaid Taxes (400,000) Claims against the estate (600,000) Vanishing deduction**
(11,600,000) (13,100,000) Net estate before special deduction and share of the surviving spouse
P12,400,000 P19,500,000 P31,900,000 Standard deduction (5,000,000) Medical expenses - Share of the
Surviving Spouse (1,800,000/2) (9,750,000) NET TAXABLE ESTATE P17,150,000 VANISHING
DEDUCTION** Value to Take/Initial Basis P15,000,000 Proportional Deduction (15,000/45,000 x
P1,500,000) (500,000) Final Basis P14,500,000 x Vanishing Deduction % 80% Vanishing Deduction
P11,600,000 Conjugal Partnership of Gains (CPG) (a)P28,400,000; (b)P3,500,000; (c)P1,750,000;
(d)P25,150,00

Land inherited during marriage P24,000,000 Other personal property owned before marriage
16,000,000 Other personal property acquired during marriage 5,000,000 Total P40,000,000 P5,000,000
P45,000,000 Deductions: Unpaid Taxes (400,000) Claims against the estate (600,000) Casualty Loss
(500,000) Funeral expenses - Judicial expenses - Vanishing deduction (same computation) (11,600,000)
(13,100,000) Net estate before special deduction and share of the surviving spouse P28,400,000
P3,500,000 P31,900,000 Standard deduction (5,000,000) Medical expenses - Share of the Surviving
Spouse (1,800,000/2) (1,750,000) NET TAXABLE ESTATE P25,150,000