Midterms schedule
Part I (computation) August 17, 2009
Part II August 19, 2009
Thanks.
Thursday, August 13, 2009
Tuesday, August 11, 2009
Problem no.2
I. Mr.P, a Filipino citizen, died in Cebu City on March 2009, leaving the following properties:
1. Household furnitures and appliances P 150,000
2. Cash in BPI (Savings Account) 75,000
3. Proceeds of life insurance wherein Mrs.X
designated her brother as her revocable
beneficiary 250,000
4. Claims against insolvent persons 30,000
5. Benefits received from her heirs from
GSIS by reason of Mrs. X’s death 100,000
6. Van, being used by Mrs. X’s brother but
Registered under her name 200,000
7. Proceeds of GSIS life insurance 100,000
==========
TOTAL P 905,000
Deductions claimed
1. Funeral Expenses P 100,000
2. Medical expenses 150,000
3. Judicial expenses 20,000
4. Claims against insolvent persons 30,000
==========
TOTAL P 300,000
Compute the net estate and the estate tax due and payable.
ANSWER:
Item no. 5 and item no 7 is not included as they are exemptions under special laws.
Gross Estate:
1. Household furnitures and appliances P 150,000
2. Cash in BPI (Savings Account) 75,000
3. Proceeds of life insurance wherein Mrs.X
designated her brother as her revocable
beneficiary 250,000
4. Claims against insolvent persons 30,000
5. Van, being used by Mrs. X’s brother but
Registered under her name 200,000
==========
TOTAL P 705,000
Deductions
1. Funeral Expenses P 35,250
2. Medical expenses 150,000
3. Judicial expenses 20,000
4. Claims against insolvent persons 30,000
==========
TOTAL P 235,250
Funeral Expenses:
P 705,000 X 5%= P35,250
Gross Estate: 705,000
Less Deductions 235,250
======
Net Estate 469,750
ESTATE TAX COMPUTATION: (SEC. 84. NIRC)
TAXABLE ESTATE: 469,750
200,000 0
269,750 X 5% 13,487.50
=========
ESTATE TAX DUE: 13,487.50
PROBLEM NO.1
I. Mr. P, a Filipino citizen, a widower with 2 children, died while having a vacation on May 2008 in New York City, leaving the following properties:
1. Apartment in New York P 1,500,000
2. House and Lot in San Francisco 2,000,000
3. House and Lot in Dumaguete City 2,000,000
4. Cash in BDO (current account) 500,000
5. Claims against insolvent person 100,000
6. Retirement benefits received by his heirs
From Mr. P’s employer under RA. 4917 700,000
7. ABS-CBN Shares of stocks 500,000
8. Car in Dumaguete City 200,000
9. Proceeds of Life Insurance where Mr. P
Named his friend Mario, as an irrevocable
Beneficiary 300,000
10. Benefits received from SSS by reason of
Mr. P’s death 500,000
=======
TOTAL 8,300,000
Deductions claimed
1. Funeral expenses P 300,000
2. Medical Expenses 650,000
3. Judicial Expenses 100,000
4. Claims against Estate 300,000
5. Claims against insolvent persons 100,000
6. Family Home 1,000,000
7. Benefits received from Mr.P’s employer 700,000
8. Losses from fire that occurred in the house
In Dumaguete City 150,000
=======
TOTAL P 3,300,000
Compute the Net Estate and the estate tax due and payable.
ANSWER :
TAKE NOTE ITEM NO. 9 IS NOT INCLUDED AS IT IS AN EXCLUSION AND ITEM NO. 10, IS AN EXEMPTION THEREFORE NOT INCLUDIBLE IN THE GROSS ESTATE OF THE DECEDENT.
1. Apartment in New York P 1,500,000
2. House and Lot in San Francisco 2,000,000
3. House and Lot in Dumaguete City 2,000,000
4. Cash in BDO (current account) 500,000
5. Claims against insolvent person 100,000
6. Retirement benefits received by his heirs
From Mr. P’s employer under RA. 4917 700,000
7. ABS-CBN Shares of stocks 500,000
8. Car in Dumaguete City 200,000
=======
TOTAL 7,500,000
Deductions claimed
1. Funeral expenses P 200,000
2. Medical Expenses 500,000
3. Judicial Expenses 100,000
4. Claims against Estate 300,000
5. Claims against insolvent persons 100,000
6. Family Home 1,000,000
7. Benefits received from Mr.P’s employer 700,000
8. Losses from fire that occurred in the house
In Dumaguete City 150,000
=======
TOTAL P 3,050,000
GROSS ESTATE 7,500,000
LESS DEDUCTIONS 3,050,000
=============
NET ESTATE 4,450,000
ESTATE TAX COMPUTATION: (SEC. 84. NIRC)
TAXABLE ESTATE: 4,450,000
2,000,000 135,000
2,450,000 X 11% 269,500
=========
ESTATE TAX DUE 404,500
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