PROBLEM#1

Funeral expenses P150,000

Judicial expenses 500,000

Medical expenses 400,000

Claims against the estate 200,000

Claims against insolvent persons 40,000

Taxes 25,000

Losses 60,000

Mortgage or indebtedness on property 120,000

Transfer for public use 100,000

Vanishing deduction 28,000

Family home 700,000

Standard deduction 1,000,000

Net share of the surviving spouse in conjugal estate 950,000

Amounts receivable under RA 4917 20,000

a) How much are the ordinary deductions from the gross estate?

b) How much are the special deductions from the gross estate?

PROBLEM#2

The decedent was single at the time of death, with a gross estate of P10,000,000 in which is included his family home of P900,000, a receivable from an insolvent person of P200,000 and a receivable under RA4917 of P500,000. Among items being considered as deductions from the gross estate are:

Medical expenses P450,000

Funeral expenses 195,000

Judicial expenses 500,000

Claims against the estate 1,000,000

How much are the deductions from the gross estate classified into ordinary and special?

Ordinary - ?

Special -?

PROBLEM#3

A man died single with residence in a home built by him. He left cash on hand of P1,000,000 that he inherited from his grandfather. His death resulted in funeral expenses of P40,000 paid from his cash and P200,000 paid by his parents.

How much are the deductions from his gross estate?

PROBLEM#4

Date of death :February 5, 2020

Gross estate P3,900,000

Funeral expenses:

Paid 150,000

Unpaid 40,000

Medical expenses:

Paid on last illness, 2 weeks before death 180,000

Unpaid on last illness 300,000

Unpaid on illness January 6, 2019: 600,000

Payments to the lawyer assisting in the settlement of the estate:

Acceptance fee April 5, 2020: 100,000

Acceptance in court June 16, 2020: 3,000

Acceptance in court October 15, 2020: 3,000

Appearance in court December 2, 2020: 3,000

Claims against the estate 200,000

Claims against insolvent person 40,000

Unpaid mortgage (on property with FMV of 1M in gross estate) 300,000

Losses:

April 10, 2020 with insurance recovery of P10,000 (FMV of 20,000

Of the property included in the gross estate) 30,000

October 2020: 50,000

Unpaid taxes on real properties included in the gross estate 25,000

Legacy of cash to the Brgy. San Andres for rehabilitation of the Barangay Hall 10,000

a) Deduction for funeral expenses?

b) Deduction for judicial expenses?

c) Deduction for medical expenses?

d) Total of other ordinary deductions from the gross estate?

PROBLEM#5

The decedent was a non-resident alien.

Gross estate in the Philippines P6,000,000

Gross estate outside the Philippines 4,000,000

Funeral expenses outside the Philippines 400,000

Administration expenses in the Philippines 300,000

Administration expenses outside the Philippines 200,000

Claims against the estate in the Philippines 800,000

Claims against the estate outside the Philippines 300,000

a) Allowable deduction from the gross estate?

b) Net taxable estate?

c) Estate tax due?

PROBLEM#6

Exclusive property (including cash of P500,000 inherited 2 years before) P2,000,000

Conjugal property (including family home of P1,900,000) 3,000,000

Ordinary deductions not including vanishing deductions:

Against exclusive property 500,000

Against conjugal property 700,000

The decedent was a resident citizen of the Philippines:

a) Vanishing deduction?

b) Deduction for family home?

c) Net taxable estate?

d) Estate tax due?