Estate and tax

Transfer tax Problem 1: (Income tax and Transfer tax) Check the box where each of the following items is taxable: Income tax 1. Sale of goods 2. Donation of goods 3. Barter of goods 4. Transfer of properties from a decedent to his heirs upon death 5. Transfer for less than full and adequate consideration Problem 2: Answer a. Determine which of the following transactions are taxable transfers. Transaction 1) Property transferred inter vivos, transferor is of advanced age and died within 3 years after the date of transfer. 2) Property sold for adequate and full consideration, transferor/seller died after one day because of incurable disease. 3) Property sold for P1,000,000. The FMV of the property sold was P 1,100,000. 4) Property transferred, transferor has the right to take back the property. 5) Property transferred, transferor has the right to take back the property. The transferor has waived the right before he died. 6) Property transferred, the transferee has the power to appoint or transfer to anybody the said property. 7) Property transferred, the transferee has the power to appoint or transfer to anybody the said property as designated by the transferor. 8) Property transferred, the transferor has the right to the income of the property transferred while he is still alive. 9) Property donated, Donor's tax paid. In the deed of donation, the donor expressly reserved for himself the usufruct over the property b. Determine the value to be included in the gross estate for each of the cases below. Case FMV, time of transfer Consideration received FMV, time of death Amount included in the gross estate 1 2 3 4 5 P2,000,000 P2,000,000 P2,000,000 P2,000,000 P2,000,000 P1,500,000 P 2,000,000 None P 3,000,000 P 1,500,000 P1,700,000 P1,000,000 P1,700,000 P3,500,000 P1,200,000 c. Identify which of the following cases of proceeds of life insurance will be included in the gross estate. 1) Proceeds of life insurance, daughter of the insured was irrevocably designated as beneficiary of the life insurance. 2) Proceeds of life insurance, wife of the insured was revocably designated as beneficiary of the life insurance. 3) Proceeds of life insurance, the beneficiary's designation was not stated in the insurance policy. 4) Proceeds of life insurance, the administrator of the estate was revocably designated as beneficiary of the life insurance. 5) Proceeds of life insurance, the executor of the estate was irrevocably designated as beneficiary of the life insurance. 6Benefits received from SSS, beneficiary was irrevocably designated as beneficiary. 7) Benefits from GSIS, beneficiary was revocably designated as beneficiary. 8) Proceeds of life insurance, the estate was designated as beneficiary of it. 9) Proceeds of life insurance from group insurance