De Vera, Angela Kyle G.

2.1 BSA
PRELIM TASK
PROBLEM 1

Required:
A. Determine the following if the decedent was a Filipino citizen but a resident of Australia
1.) TAXABLE NET ESTATE

Domestic shares of 2,000 shares inherited 6 years ago

House and lot, family home, located in Davao,
inherited 2 years ago at a value of 1,500,00
Jewelry items in the Philippines at the time of death
Jewelry items kept in a vault abroad
Bank deposit in a Philippine branch of a US bank
Interest from bank deposits after decedent’s death
Transfer for Public Use (Donation to the Phil Gov't provided in his will
GROSS ESTATE

LESS: ORDINARY DEDUCTIONS

Funeral expenses
Judicial expenses abroad
Judicial expenses, Philippines
Claims against the estate
Transfer for Public Use
Vanishing deductions

LESS: SPECIAL DEDUCTIONS

Standard Deduction (Train Law)
Family home
Medical expenses
RA 4971

TAXABLE NET ESTATE

Net estate
Estate tax rate
ESTATE TAX DUE
Value to take P1,500,000
Less: Mortgage -
Initial Basis P1,500,000
Proportionate deduction
(1,500,000/15,850,000x 370,000 (35,016)
Final basis P1,462,984
Vanishing deduction rate 80%
Vanishing deduction P1,171,987

B. Determine the following if the decedent was not a Filipino citizen but a resident of Davao City
1. Taxable Net Estate

Domestic shares of 2,000 shares inherited 6 years ago

House and lot, family home, located in Davao,
inherited 2 years ago at a value of 1,500,00
Jewelry items in the Philippines at the time of death
Jewelry items kept in a vault abroad
Bank deposit in a Philippine branch of a US bank
Interest from bank deposits after decedent’s death
Transfer for Public Use (Donation to the Phil Gov't provided in his will
GROSS ESTATE

LESS: ORDINARY DEDUCTIONS

Funeral expenses
Judicial expenses abroad
Judicial expenses, Philippines
Claims against the estate
Transfer for Public Use
Vanishing deductions

LESS: SPECIAL DEDUCTIONS

Standard Deduction (Train Law)
Family home
Medical expenses
RA 4971

TAXABLE NET ESTATE

Net estate
Estate tax rate
ESTATE TAX DUE

PROBLEM 2:

1. EXCLUSIVE PROPERTY

Exclusive Property, Philippines

Add: Exclusive property
Exclusive property,USA
Other tangible personal properties
Less:
Car, which was inherited
Total Exclusive Property

2. COMMUNITY PROPERTY

Conjugal property, Philippines

Domestic Shares
Shares in a Partnership
Add: Conjugal property
Conjugal property,USA
Total Conjugal Property

3. TAXABLE NET ESTATE

Exclusive Property
Conjugal property
total
Less:
Deduction claimed
NET TAXABLE ESTATE

4. ESTATE TAX DUE

Net taxable estate
Estate tax rate
ESTATE TAX DUE
PROBLEM 3:

A. RESIDENT CITIZEN
Cash (100,000+100,000+500,000)
Real Property (3,000,000+3,000,000+1,500,000)
Personal Property
Intangible Property (250,000+100,000)
Land 3 (10,000,000-5,000,000)
Car-Manila (1,000,000-800,000
TOTAL

B. NON-RESIDENT CITIZEN
Cash (100,000+100,000+500,000)
Real Property (3,000,000+3,000,000+1,500,000)
Personal Property
Intangible Property (250,000+100,000)
Land 3 (10,000,000-5,000,000)
Car-Manila (1,000,000-800,000
TOTAL

C. RESIDENT ALIEN
Cash (100,000+100,000+500,000)
Real Property (3,000,000+3,000,000+1,500,000)
Personal Property
Intangible Property (250,000+100,000)
Land 3 (10,000,000-5,000,000)
Car-Manila (1,000,000-800,000
TOTAL

D. NON-RESIDENT ALIEN WITH RECIPROCITY

Cash (100,000+500,000)
Real Property
Personal Property
Car-Manila (1,000,000-800,000
TOTAL

E. NON-RESIDENT ALIEN WITHOUT RECIPROCITY

Cash (100,000+500,000)
Real Property
Personal Property
Intangible Property
Car-Manila (1,000,000-800,000
TOTAL
 Business Taxation

PRELIM TASK

but a resident of Australia

P8,000,000
2,000,000

400,000
200,000
5,000,000
-
250,000
P15,850,000

-
-
-
120,000
250,000
1,171,987 (1,541,987)

5,000,000
2,000,000
-
-
(7,000,000)
P7,308,013

P7,308,013
6%
P438,481
en but a resident of Davao City

P8,000,000
2,000,000

400,000
200,000
5,000,000
-
250,000
P15,850,000

-
-
-
120,000
250,000
1,171,987 (1,541,987)

5,000,000
2,000,000
-
-
(7,000,000)
P7,308,013

P7,308,013
 6%
P438,481

P2,000,000

5,000,000
3,500,000

(500,000)
P10,000,000

P5,000,000
500,000
1,000,000

10,000,000
P16,500,000

P10,000,000
16,500,000
26,500,000

(4,850,000)
P21,650,000

P21,650,000
6%
P1,299,000
 P700,000
7,500,000
800,000
350,000
5,000,000
200,000
P14,550,000

P700,000
7,500,000
800,000
350,000
5,000,000
200,000
P14,550,000

P700,000
7,500,000
800,000
350,000
5,000,000
200,000
P14,550,000

P600,000
1,500,000
800,000
200,000
P3,100,000

P600,000
1,500,000
800,000
350,000
 200,000
P3,450,000