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Estatetaxexam Questionswithanswers4 PDF Free
Estatetaxexam Questionswithanswers4 PDF Free
Estate Tax
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13. Lolo Sot, 95 years old, was diagnosed of various a. P500,000 c. P800,000
ailments on January 1, 2018. Motivated by thought of b. P1,200,000 d. P0
death, he decided to dispose all his properties to his
children and relatives. He executed a last will and 19. Vlad died on October 20, 2018. During his lifetime,
testament disposing all his properties in the Philippines upon knowing that he had Stage 4 cancer, sold his
to his children. On the same day, he made donations Lamborghini car to his son for P4,000,000. The fair
inter-vivos to his other relatives as to his properties in market value of the car at the time of sale is
the United States. Lolo Sot died a month after P3,000,000 while it is already valued at P5,000,000 at
disposing all his properties. Should the properties the time of death. The amount that will be added to
donated by Lolo Sot to his other relatives be included gross estate is:
in his gross estate upon his death? a. P1,000,000 c. P2,000,000
a. No, because they were not his properties anymore b. P5,000,000 d. nil
at the time of death.
b. Yes, because the donations were donations mortis 20. Based on the preceding number, if the consideration is
causa and should be governed by the rules on fictitious, how much will form part of gross estate?
estate taxation. a. P1,000,000 c. P2,000,000
c. No, if the donor’s tax had been paid already on b. P5,000,000 d. nil
the donations.
d. No, because they were not transfers in 21. Who among the following transferors is not liable for
contemplation of death, since the donations were estate tax on the property transferred during his
not simultaneous with the execution of the last lifetime?
will and testament. a. The testator who bequeaths property to his heirs in
a last will and testament executed and probated
14. The following are subject to estate tax, except during his lifetime.
a. While still alive, the decedent donated property b. The donor who reserves his right to amend or
where the donation will take effect at the time revoke the donation of property in favor of the
of his death. donee.
b. The decedent transferred a property in the c. The donee of an appointed property who is
regular course of the business operation. required under a power of appointment to transfer
c. The decedent donated a property with the such property upon death to his eldest child.
condition that he/she will enjoy the fruits of d. The transferor of personal property who sold it for
such while he/she is still alive. insufficient consideration.
d. The decedent transferred a property to take
effect after his/her death 22. Which of the following life insurance proceeds shall not
be included in the computation of gross estate?
15. One of the following donations is not included as part a. Beneficiary is the estate, executor or administrator
of gross estate and the designation of the beneficiary is revocable;
a. Revocable transfers b. Beneficiary is the estate, executor or administrator
b. Transfers with reservation of certain rights and the designation of the beneficiary is
c. Transfers under special power of appointment irrevocable;
d. Transfers in contemplation of death c. Beneficiary is other than the estate, executor or
administrator and the designation of the
16. Statement 1: Aguinaldo devised in his will a piece of beneficiary is revocable;
land; naked title to Bonifacio and usufruct to Rizal for d. Beneficiary is other than the estate, executor or
as long as Rizal lives, thereafter to Bonifacio. The administrator and the designation of the
transmission from Aguinaldo to Bonifacio and Rizal is beneficiary is irrevocable.
subject to estate tax but the merger of the usufruct
and the naked title to Bonifacio upon the death of Rizal 23. The list provided below is not included in the gross
is exempt. estate of a decedent, except:
a. Share in common properties of the surviving
Statement 2: Erap devised in his will real property to spouse;
his brother Alfredo who is entrusted with the obligation b. Exclusive property of the surviving spouse;
to preserve and transmit the property to Isko, son of c. Properties outside the Philippines of a non-
Alfredo, when Isko becomes of age. The transmission resident alien decedent;
from Alfredo to his son Isko is subject to tax. d. Intangible personal property in the Philippines
a. Only statement 1 is correct of a non-resident alien when the rule of Reciprocity
b. Only statement 2 is correct applies.
c. Both statements are correct
24. The following are transactions and acquisitions exempt
d. Both statements are incorrect
from transfer tax, except
a. Transmission from the first heir or donee in favor
17. Pedro, decedent, owns a property valued at of another beneficiary in accordance with the
P1,500,000 at the time of his death. The said property
desire of the predecessor
was sold by Pedro during his lifetime to Juan for b. Transmission or delivery of the inheritance or
P700,000 when its value was P1,200,000. It was
legacy by the fiduciary heir or legatee to the
agreed by Pedro and Juan that the former will enjoy fideicommissary
the income of the property as long as he lives. For
c. The merger of usufruct in the owner of the
Philippine estate tax purposes, how much will be naked title
included in determining gross estate?
d. All bequests, devises, legacies or transfers to
a. P500,000 c. P800,000 social welfare, cultural and charitable institutions
b. P1,200,000 d. P0
25. Statement 1: In the absence of marriage settlements
18. Based on the preceding number, if the fair market
executed before the marriage, the property
value of the property at the time of death is only relationship between husband and wife shall be
P600,000, how much will form part of gross estate?
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governed by local custom and by the provisions of law, fair market value of P4,000,000
respectively. after construction of the house.
Statement 2: Claims against insolvent persons may be Other properties acquired during 6,000,000
charged against exclusive property marriage
a. Only statement 1 is correct Jewelry inherited on Feb. 14, 2017, 2,500,000
b. Only statement 2 is correct during marriage, then with a fair
c. Both statements are correct market value of P1,300,000
d. Both statements are incorrect Property in U.S., received as gift 2,300,000
during marriage from a friend on Jan.
26. One of the following is a conjugal property of the 12, 2017 (the applicable donor’s tax
spouses was not paid by the donor)
a. That which is brought to the marriage as his or her Rental income on the above property 1,200,000
own. up to time of death
b. That which each acquires during the marriage by Expenses/Claims:
inheritance. Funeral expenses 420,000
c. The fruits of an exclusive property. Judicial expenses 800,000
d. That which is purchased with the exclusive Casualty losses incurred on Dec. 10, 600,000
property of the wife. 2018
Claims against the estate 1,600,000
27. One of the following is not a community property of Medical expenses within 1 year prior 4,000,000
the spouses to death, only half was receipted
a. Property inherited by the husband before marriage
b. Winnings in gambling 31. How much is the net taxable estate under Conjugal
c. Fruits of property inherited during the marriage Partnership of Gains?
d. Fruits of property inherited before the marriage a. P3,926,000 c. P3,426,000
b. P6,426,000 d. P1,348,000
28. If the decedent is married under the conjugal
partnership of gains, vanishing deduction shall be 32. How much is the net taxable estate under Absolute
chargeable against? Community of Property?
a. Exclusive Properties a. P4,836,000 c. P1,174,000
b. Conjugal Properties b. (P2,174,000) d. P2,174,000
c. Either Exclusive Properties or Conjugal Properties
d. Neither Exclusive nor Conjugal Properties 33. The following data were taken from the estate of Oslo:
Claims against Juan (insolvent), P100,000, fully
Use the following data for the next two questions: uncollectible.
Pedro, married to Susan, died leaving the following: Claims against Manuel (insolvent), P200,000, 50%
collectible.
Car acquired before marriage by Pedro P300,000 Claims against a person who absconded,
Car acquired before marriage by Susan 450,000 P300,000.
House and lot acquired during marriage 1,500,000
Jewelries of Susan 100,000 Based on the data provided, how much should be
Personal properties inherited by Pedro 250,000 deducted from Pedro’s gross estate?
during marriage a. P600,000 c. P200,000
Land inherited by Susan during 1,000,000 b. P500,000 d. nil
marriage
Rental income on land inherited by 200,000 34. Which statement is incorrect about claims against
Susan (25% of which was earned after insolvent persons?
Pedro’s death) a. They must be included in the gross estate even if
Benefits from SSS 350,000 uncollectible.
Retirement benefits 480,000 b. They must be duly notarized as a rule.
Proceeds of group insurance taken by 175,000 c. The deduction is only the uncollectible portion.
Juan’s employer d. The insolvency of the debtor must be established.
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a. The estate tax of the prior succession must have valued at P4,000,000. He also owns a vacation house
been finally determined and paid. in Baguio worth P7,000,000.
b. The present decedent died within five (5) years
from date of death of the prior decedent. The deductible amount of family home is:
c. The property with respect to which deduction is a. P8,000,000 c. P4,000,000
sought can be identified as having been received b. P12,000,000 d. P10,000,000
by the present decedent from the prior decedent.
d. None of the above 42. Based on the preceding number, if the house is also an
exclusive property, how much is the deductible family
38. Mr. Sabillo, resident decedent, married, died, home allowance?
a. P8,000,000 c. P4,000,000
leaving the following properties: b. P12,000,000 d. P10,000,000
Real and personal properties P 3,000,000
acquired during the marriage
43. The following statements are correct regarding
House and lot inherited from his 2,000,000
standard deduction, except:
father one year and 3 months before
a. A deduction in the amount of P5,000,000 shall be
he died (fair market value when
allowed as an additional deduction without need of
inherited, P1,500,000) used as the
substantiation.
decedent's family home
b. The full amount of P5,000,000 shall be allowed as
Car purchased with cash received as 500,000
deduction for the benefit of the decedent.
gift from his mother during the year
c. Standard deduction is not allowed to decedents
he died
who are non-resident aliens.
Cash (inclusive of P500,000 received 1,500,000
d. None of the above
as inheritance from the father)
44. One of the following cannot be claimed as deduction
The following obligations and expenses were also made
from the gross estate of a non-resident alien decedent:
available:
a. Vanishing deduction
Claims against conjugal properties 600,000
b. Family home allowance
Unpaid mortgage on the inherited house 100,000
c. Share of surviving spouse
and lot (original mortgage was for
d. Transfer for public use
P600,000)
45. In computing the estate tax, which of the following
How much is the vanishing deduction?
shall not be allowed to claim tax credit for taxes paid
a. P1,530,000 c. P1,000,000
abroad?
b. P1,080,000 d. None of the choices
a. Resident alien decedent
b. Non-resident alien decedent
39. Teh Pok died on November 20, 2018 . Some of the c. Resident citizen decedent
properties he left are the following: d. Non-resident citizen decedent
Mode Market Value
of Date Date Date of 46. Jiraiya, non-resident Japanese, died on May 1, 2018
Asset Acquisition Acquired Acquired Death leaving the following:
Land Purchase 7-3-14 500,000 350,000 Exclusive properties, Philippines P5,600,000
Car Donation 10-2-17 800,000 980,000 Conjugal properties, Philippines 4,200,000
Conjugal properties, Abroad 18,200,000
Other information: Claims against insolvent persons 1,000,000
a) The gross estate of the decedent amounts to Funeral expenses 200,000
P3,000,000. Judicial expenses 850,000
b) The car was mortgaged for P50,000 when it Claims against the estate 1,500,000
was acquired and Teh Pok paid the same Losses: occurring 8 mos. after death
before he died. due to fire 1,700,000
c) The allowable deductions totaled P325,000, Donation mortis causa to Makati City
which includes judicial expenses of P30,000 Hall 1,800,000
and funeral expenses of P150,000. Family Home (inc. above), located
abroad 10,000,000
The vanishing deduction is – Standard deduction 10,000,000
a. P581,000 c. P648,783
b. P571,000 d. P637,617 The taxable net estate is:
a. P5,165,000 c. P4,165,000
40. Which of the following statements is incorrect in b. P4,665,000 d. P21,000,000
connection with family home?
47. If decedent is a Filipino citizen, the taxable net estate
a. Family home deduction shall be allowed only if
such family home is situated in the Philippines is:
b. The total value of the family home must be a. P11,490,000 c. P4,100,000
included as part of the gross estate of the b. P12,645,000 d. P7,900,000
decedent
c. For purposes of availing family home deduction, a Next two (2) questions are based on the following:
person may constitute only one family home A citizen-decedent died in 2018 with the following data:
d. Family home deduction may not be lower than Philippines USA
P10,000,000 Gross Estate P14,200,00 P4,400,000
0
41. Pedro died on Nov. 1, 2018 leaving a family home
composed of the following: Conjugal house worth
P8,000,000, and the land which he exclusively owned Allowable Deductions 6,400,000 2,200,000
(excluding standard
deduction)
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Estate tax paid - 150,000 d. Duly authorized treasurer of the city or
municipality where the decedent is domiciled
48. How much is the estate tax payable in the Philippines at the time of his death.
assuming the decedent is a non-resident citizen?
a. P168,000 c. P150,000 54. Can the estate tax be paid in installment?
b. P132,000 d. P300,000 a. Yes, in case the available cash of the estate is
not sufficient to pay its estate tax liability.
49. How much is the estate tax payable in the Philippines b. Yes, at the option of the heirs with
assuming the decedent is a non-resident alien? corresponding interest charges.
a. P168,000 c. P150,000 c. No, tax is the lifeblood of the State, hence,
b. P438,000 d. P300,000 collection cannot be delayed under any
circumstance.
50. Lola Trining died in 2019 leaving a gross estate d. None of the above
amounting to P150,000 only. No estate tax is due
based on the tax code. The gross estate is composed 55. Statement 1: If a bank has knowledge of the death of
of a second hand car worth P80,000, shares of stocks a person, who maintained a bank account alone, or
valued at P50,000 and P20,000 time deposit. The jointly with another, it shall allow the withdrawal from
administrator believes that only notice of death should said deposit account, subject to a final withholding tax
be filed since the value of the gross estate is exempt of 6% of the amount to be withdrawn, provided, that
from tax. What will you tell him? the withdrawal shall only be made within one year
a. Notice of death and estate tax return have to be from the date of said decedent.
filed because the gross estate exceeds P20,000 Statement 2: In all cases, the final tax withheld shall
and when the gross estate consists of registered or not be refunded, or credited on the tax due, on the net
registrable properties, estate tax is required to be taxable estate of the decedent.
filed regardless of the value of the gross estate. a. Only statement 1 is correct
b. Only notice of death is required to be filed because b. Only statement 2 is correct
the gross estate exceeds P20,000. Estate tax c. Both statements are correct
return is required to be filed only when the gross d. Both statements are incorrect
estate exceeds P200,000 and/or there is estate tax
due. 56. Which of the following statements is correct?
c. Neither notice of death nor estate tax return need a. There shall not be transferred to any new owner in
to be filed in this particular case. the books of any corporation, sociedad anonima,
d. Only estate tax return has to be filed. partnership, business, or industry organized or
established in the Philippines any share, obligation,
51. Which of the following is not correct? bond or right by way of gift inter-vivos or mortis
a. When a compulsory heir is given by will less than causa, legacy or inheritance, unless an eCAR is
his legitime, the provisions of the will should be issued by the Commissioner or his duly authorize
modified in such a way that he will receive his representative.
legitime. b. In instances where the deposit accounts have been
b. The CIR may examine the bank deposit of a duly included in the gross estate of the decedent
decedent for the purpose of determining his gross and the estate tax due thereon paid, the executor,
estate even if the estate did not request for a administrator, or any of the legal heirs shall
compromise on the ground of financial incapacity. present the eCAR issued for the said estate prior to
c. The sharing of heirs in testamentary succession withdrawing from the bank deposit account.
must satisfy the rules on legitime. c. The withdrawal describe in letter b shall no longer
d. If an extension to pay the estate tax is granted, be subject to the 6% withholding tax by the bank.
the Commissioner or his duly authorized d. All of the above
representative may require the administrator, or
executor, or beneficiary, to furnish a bond in such 57. In filing the estate tax return under the TRAIN Law, a
amount exceeding double the amount of the tax CPA certificate is required when:
and with such sureties as the Commissioner deems a. Gross estate exceeds P 2,000,000
necessary, conditioned upon the payment of said b. Gross estate exceeds P 5,000,000
tax in accordance with the terms of the extension. c. Gross estate exceeds P10,000,000
d. Gross estate reaches P 2,000,000
52. Statement 1: Any amount paid beyond the statutory
due date of the tax, but within the extension period, 58. A died leaving a house and lot to B on March 31, 2018
shall be subject to interest but not to surcharge. which was questioned by C and it is under litigation
Statement 2: No extension for payment of estate tax but, subsequently, the parties executed an extra-
shall be granted where the request for extension is by judicial settlement. The last day for filing the estate
reason of negligence, intentional disregard of rules and tax return is
regulations, or fraud on the part of the taxpayer. a. April 30, 2018 c. September 30, 2018
a. Only statement 1 is correct b. April 30, 2019 d. March 31, 2019
b. Only statement 2 is correct 59. The last day for the payment of estate tax may be
c. Both statements are correct extended, until;
d. Both statements are incorrect a. March 31, 2021 c. September 30, 2019
b. September 30, 2021 d. April 30, 2022
53. In case of a resident decedent, the administrator of
executor shall register the estate of the decedent and -done-
secure new TIN from the the
a. Office of the Commissioner.
b. RDO where the administrator or executor is
registered.
c. RDO where the decedent was domiciled at the
time of his death.
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