TRANSFER TAXATION/ESTATE TAX
PROBLEMS:
I. X, a Filipino residing in Pateros, Metro Manila, died a widower on December 20, 2008, leaving the following properties to his children who lived with him.
1) A parcel of land in New York …………………………P2,000,000.00
2) A house and lot in Pateros, Metro Manila …….. 1,800,000.00
3) Claim against an insolvent person ………………… 50,000.00
4) Cash in bank (current account) …………………….. 100,000.00
5) Proceeds of life insurance where he named
his only son, Y, as irrevocable beneficiary……… 200,000.00
6) Shares of stock in a foreign corporation with
Office in New York ……………………………………….. 900,000.00
7) Car in New York …………………………………………… 250,000.00
Total ………………………………………………….. P5,300,000.00
The deductions claimed are as follows:
1) Funeral expenses ……………………………………………. P 250,000.00
2) Medical expenses ……………………………………………P 550,000.00
3) Judicial expenses ……………………………………………. 35,000.00
4) Claims against estate ……………………………………… 72,500.00
5) Claims against an insolvent person ………………… 50,000.00
6) Real Property tax for 2009 …………………………….. 10,000.00
7) Family Home ………………………………………………….P1,000,000.00
Total ……………………………………………….P1,967,500.00
Required:
Compute the net estate and the estate tax due and payable.
II. X, a Filipino residing in Boac, Marinduque, where he worked as branch manager of a bank, married to Y, died intestate (without a will) on January 15, 2009 leaving properties which consist of the following:
1) House and lot (conjugal partnership property) located in Quezon city acquired during marriage ………………………………….P2,000,000.00
2) Household furniture and appliances …………………. 380,000.00
3) Lot located in the province acquired before
Marriage ………………………………………………………….. 900,000.00
4) Improvements on lot described in No. 3 built before
Marriage …………………………………………………………. 1,300,000.00
5) 1,000 shares of stock in a corporation having a
Far market value of P24 per share at the time of
X’s death ………………………………………………………… 240,000.00
6) Retirement benefits received by heirs form X’s
Employer (under R.A. No. 4917) ……………………. 700,000.00
Total …………………………………………………… P5,520,000.00
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Claimed as deductions by the heirs who settled he estate extrajudicially are the following:
Funeral expenses …………………………………………. P 90,000.00
Medical expenses incurred on January
2-5, 2008 ………………………………………….. 200,000.00
Judicial expenses ……………………………………….. 100,000.00
Unpaid mortgage n house and lot (family home)
In Quezon City …………………………………. 830,000.00
Losses from fire on June 30, 2009 of improvements
In No. 4 above (not compensated for by
Insurance or otherwise …………………… 500,000.00
Losses from flood on July 30, 2009 of household
Furnitures and appliances ( also not compensated
For by insurance or otherwise) ………… 50,000.00
Family home …………………………………………….. 1,000,000.00
Total ………………………………………………. P2,270,000.00
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Required:
Compute the estate tax due and payable.
III. X, a Japanese residing in Tokyo, Japan, died leaving the following properties:
Properties located in the Philippines P 500,000.00
Properties located in Japan 1,000,000.00
Total gross estate within and outside
Of the Philippines P1,500,000.00
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His administrator in the Philippines claimed the following deductions:
Expenses for cremation P 10,000.00
Cost of urn containing his ashes 5,000.00
Judicial expenses in connection with properties
In the Philippines 20,000.00
Indebtedness incurred in the Philippines 85,000.00
Total P120,000.00
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Required:
Compute the net estate subject to Philippine estate tax and the estate tax due and payable.
