Tax

ation – Estate Taxes

Sample Problems – Discussion on Gross Estate

Problem 1. Transfers for Insufficient Consideration

Required: Calculate the amount to be included in the gross estate. All amounts are in PHP.
Case 1 Case 2 Case 3
Fair market value at 50,000 25,000 10,000
the time of transfer
Fair market value at 62,500 20,000 20,000
the time of death
Consideration received 22,000 5,000 15,000
during the transfer
Amount included in the ? ? ?
Gross Estate

Problem 2. Gross Estate

A frontliner died on the 2nd quarter of 2020 due to the pandemic. He left the following properties:
House and lot in Batangas P2,500,000
Car in Manila 500,000
Apartment in Japan 1,000,000
Shares of stock in a domestic corporation 50,000
Bank of Philippine Islands bank deposit 500,000
Shares of stock in a foreign 200,000

corporation, 60% of its operations are in PH

Interest on his partnership in Philippines (with 130,000
P30,000 included as income accrued at the time
of his death)
Shares of stock in PLDT (TEL) 1,000 shares
Highest – P1,470; Lowest – P1,430

Required: Calculate the amount of gross estate, assuming that the decedent is a:
1. Filipino
2. Korean currently living in another country
3. Japanese residing in his home country (Japan)