SEATWORK NO.

1 – DONORS TAX
1. For the donation to be considered valid, acceptance of the donation must be made.
a) during the lifetime of the donor only.
b) during the lifetime of the donor and the donee
c) during the lifetime of the donee only
d) none of the choices
2. First statement: Donors tax shall be levied, assessed collected and paid upon the
transfer of property by any person , resident or non-resident as a gift.
Second statement: For the purpose of donor’s tax, a stranger is a person who is
not a relative by consanguinity in the collateral line within the fifth degree of
relationship.
a) False, False
b) True, False
c) False True
d) True, True
3. One of the following donees will not entitle the donor-parent to a P10,000 dowry
exemption.
a) None
b) Adopted Child
c) Recognize Natural Child
d) Stepchild
4. Which of the following statement is incorrect?
a) The government is not legally bound by the agreement between the donor
and the donee that the later shall pay the donors tax instead of the former.
b) A separate return shall be filed by each donor for each gift or donation made
on different dates during the year reflecting therein any previous net gift
made in the same calendar year.
c) When a donors tax return was filed and it was found out by the BIR to
have errors which gave rise to a deficiency donors tax, the donor
cannot be required to pay the deficiency.
d) Only one return shall be filed for several gift or donations by a donor to the
different donees on the same date.
5. First statement: In all cases, void donations are not subject to donors tax.
Second statement: Every donation between the spouses during the marriage shall
be void.
a) both statements are fals
b) both statements are true
c) First statement is false while the second statement is true
d) First statement is true while second statement is false
6. John Samuelson, resident alien, donated a piece of jewelry to his son who got
married on January 15, 2020. The piece of jewelry was mailed to his son on
January 10, 2020 and was accepted on January 20, 2020. When is the last day to
file the donors tax return?
a) February 19, 2020
b) February 14, 2020
c) February 9, 2020
d) March 20, 2020
7. When a property is donated in contemplation of death the basis of the tax shall be
a) Fair market value at the time of death
b) Cost when the property was acquired
c) Fair market value at the time of death of the donor
d) Fair market value in the hands of the donor before the time of donation
8. Which of the following is a stranger for donor’s tax purposes?
a) The donor’s grandmother
b) The donor’s spouse
c) A child born out of wedlock of parents who are legally impeded to marry
each other at the time the child is being conceived.
d) None
9. When the donee is a stranger the tax payable is:
a) 6% of the gross gifts
b) 6% of the net gifts
c) based on the graduated tax rates
d) based on the graduated tax rates or 30% of gross gifts whichever is higher
10. First statement: A donation on which the donor’s tax is net paid is a valid donation
Second statement: Title to a tax –exempt donation of a real property cannot be
transferred to the donee in the Register of Deeds unless the donor’s tax on the
donation had been paid
a) False, True
b) False, False
c) True, True
d) True, False
11. The donation of personal (movable) property may be made:
I. Orally of the value is P5,000 or less requiring simultaneous delivery.
II. In Writing if the value is more than P 5,00
a) Only I is correct
b) Only II is correct
c) Both I and II are incorrect
d) Both I and II are correct
12. The donation of movable property may be made
a) Either A or B
b) Neither A or B
c) Orally
d) Writing
13. Using the preceding number, the donation and acceptance should be in writing if
the value of the property donated is
a) Less than 5000
b) P5,000 or less
c) P5,000 or more
d) More than 5000
14. The donation of an immovable property shall be made
a) Either A or B
b) Orally
c) In public instruments
d) In writing
15. Using the preceding number, acceptance by the donee may be made:
a) Neither A or B
b) In same deed of donation
c) In a separate document
d) Either A or B
16. I. Donation of an immovable property shall be made in writing.
II. Encumbrance of the property donated, if assumed by the donor is deductible for
the donors tax purposes.
a) False, True
b) False, False
c) True, False
d) True, True
17. I. As a rule, donation between husband and wife during marriage is void
II. Donation can be made to conceived or unborn children
a) False, False
b) False, True
c) True, False
d) True, True
18. A donation which takes upon the death of the donor
a) Shall be governed by the law on succession
b) All
c) Partakes of the nature of a testamentary disposition
d) Donation mortis causa
19. A donation which is intended by the donor to take effect during his lifetime
a) Shall be subject to donor’s tax using the tax table for donation
b) All
c) Donation inter vivos
d) Shall be in writing if the value exceeds P 5,000
20. I. Gift is perfected from the moment the donor effects the delivery either actual or
constructively of the property donated.
II. Donors tax is a property tax imposed on the property transferred by way of gift
inter-vivos
a) False, True
b) False, False
c) True, False
d) True, True
 SEATWORK NO.2- DONORS TAX
1. In 2019, Joseph made the following gifts:
(a) On June 1, 2019, P150,000 to Antonio, his son, on account of his marriage celebrated
on May 1, 2019;
(b) On July 10, 2019, a parcel of land worth P180,000 to his father, subject to the condition
that the father would assume the mortgage indebtedness of Joseph in the amount of
P40,000;
(c) On September 30, 2019, P150,000 dowry to his daughter Dana, on account of her
scheduled marriage on October 25, 2019, and another wedding gift worth P20,000 on
November 23, 2019.
How much is the total net gifts?
a) P460,000
b) P500,000.
c) P450,000
d) P430,000

2. In 2019, Joseph made the following gifts:

(a) On June 1, 2019, P150,000 to Antonio, his son, on account of his marriage celebrated
on May 1, 2019;
(b) On July 10, 2019, a parcel of land worth P180,000 to his father, subject to the condition
that the father would assume the mortgage indebtedness of Joseph in the amount of
P40,000;
(c) On September 30, 2019, P150,000 dowry to his daughter Dana, on account of her
scheduled marriage on October 25, 2019, and another wedding gift worth P20,000 on
November 23, 2019.
How much donor’s tax was paid in the month of June?
a) 9000
b) -9000 (tax credit)
c) 0
d) 8400
3. In 2019, Joseph made the following gifts:
(a) On June 1, 2019, P150,000 to Antonio, his son, on account of his marriage celebrated
on May 1, 2019;
(b) On July 10, 2019, a parcel of land worth P180,000 to his father, subject to the condition
that the father would assume the mortgage indebtedness of Joseph in the amount of
P40,000;
(c) On September 30, 2019, P150,000 dowry to his daughter Dana, on account of her
scheduled marriage on October 25, 2019, and another wedding gift worth P20,000 on
November 23, 2019.
How much donor’s tax was paid in the month of July?
a) 8400
b) 10800
c) 2400
d) 4200

4. In 2019, Joseph made the following gifts:

(a) On June 1, 2019, P150,000 to Antonio, his son, on account of his marriage celebrated
on May 1, 2019;
(b) On July 10, 2019, a parcel of land worth P180,000 to his father, subject to the condition
that the father would assume the mortgage indebtedness of Joseph in the amount of
P40,000;
(c) On September 30, 2019, P150,000 dowry to his daughter Dana, on account of her
scheduled marriage on October 25, 2019, and another wedding gift worth P20,000 on
November 23, 2019.
How much was the total tax due in the month of September?
a) 11400
b) 9600
c) 0
d) 12600
5. In 2019, Joseph made the following gifts:
(a) On June 1, 2019, P150,000 to Antonio, his son, on account of his marriage celebrated
on May 1, 2019;
(b) On July 10, 2019, a parcel of land worth P180,000 to his father, subject to the condition
that the father would assume the mortgage indebtedness of Joseph in the amount of
P40,000;
(c) On September 30, 2019, P150,000 dowry to his daughter Dana, on account of her
scheduled marriage on October 25, 2019, and another wedding gift worth P20,000 on
November 23, 2019.
How much was the total donor’s tax due for the year?
a) 25800
b) 27600
c) 12600
d) 27000

6. Mr. Gary Nievera, a citizen and resident of the Philippines, made donations as follows:
On January:
Donation to Alan, a legitimate son, on account of marriage, to be celebrated on February
14, 2020, property in the United States (on which a U.S. donor’s tax of P1,200 was paid)
with a fair market value of P110,000
On February:
Donation to Alan, cash in the Philippines of 150,000
Donor’s tax paid in January?
a) 1200
b) 6600
c) 0
d) 5400
7. Mr. Gary Nievera, a citizen and resident of the Philippines, made donations as follows:
On January:
Donation to Alan, a legitimate son, on account of marriage, to be celebrated on February
14, 2020, property in the United States (on which a U.S. donor’s tax of P1,200 was paid)
with a fair market value of P110,000
On February:
Donation to Alan, cash in the Philippines of 150,000
The donors’ tax credit allowed for donor’s tax paid to the U.S. amounts to:
a) 1200
b) 4230.76
c) 4250.38
d) 6600

8. Mr. Gary Nievera, a citizen and resident of the Philippines, made donations as follows:
On January:
Donation to Alan, a legitimate son, on account of marriage, to be celebrated on February
14, 2020, property in the United States (on which a U.S. donor’s tax of P1,200 was paid)
with a fair market value of P110,000
On February:
Donation to Alan, cash in the Philippines of 150,000
Donor’s tax due in February?
a) 5749.62
b) 5769.24
c) 3400
d) 10000
9. Mr. Bean, a citizen and resident of the Philippines, made the following donations on
February 14, 2019:
To Mr. Carlos, a legitimate child, on account of marriage on the same day, property in
Malaysia, which paid the Malaysian donor’s tax of P52,000 and with a fair market value
of P610,000.
To Mr. Dimalabanan, a friend, ordinary donation of property in the Philippines, subject to
a mortgage of P60,000, which was assumed by the donee, and fair market value equals
160,000
Tax due in February?
a) 27600
b) 0
c) 79200
d) 31200

10. Mr. Bean, a citizen and resident of the Philippines, made the following donations on
February 14, 2019:
To Mr. Carlos, a legitimate child, on account of marriage on the same day, property in
Malaysia, which paid the Malaysian donor’s tax of P52,000 and with a fair market value
of P610,000.
To Mr. Dimalabanan, a friend, ordinary donation of property in the Philippines, subject to
a mortgage of P60,000, which was assumed by the donee, and fair market value equals
160,000
Tax credit allowed
a) 26805.63
b) 21691.27
c) 23712.67
d) 52000
11. Mr. Bean, a citizen and resident of the Philippines, made the following donations on
February 14, 2019:
To Mr. Carlos, a legitimate child, on account of marriage on the same day, property in
Malaysia, which paid the Malaysian donor’s tax of P52,000 and with a fair market value
of P610,000.
To Mr. Dimalabanan, a friend, ordinary donation of property in the Philippines, subject to
a mortgage of P60,000, which was assumed by the donee, and fair market value
equals160,000
How much was the tax paid after tax credit?
a) 5908.73
b) 794.37
c) 3887.33
d) 0
12. Sarah has donated the ff properties in 2018:
To her granddaughter 2 MacBook Pro worth P120,000 each on January.
To her son, Joseph, a Lamborghini worth P9,300,000. The said is mortgaged for
1,500,000 which was assumed by the donor. Donation happened in March.
To her sister Mary Ann, P50,000 worth of jewelry on February.
To her favorite niece, Nikka, a property worth P2,500,000 which was made orally. On
February.
She also donated some of her properties to the Government agencies on April as follows:
To the Integrated Bar of the Philippines: P200,000
To the DPWH: 320,000
To the Red Cross Foundation: 250,000
To the National Social Action Council: 100,000
She also transferred her house and lot to her daughter in USA she bought for $65,000 on
May and paid P235,000 USA taxes. The FV at time of donation was at $80,000. (USDPHP
= Spot Rate: 50, Discounted Rate 48.9)
After Sarah heard that her friend Lotty is still alive, she gave her title to a farmland in
which Lotty resides. Lotty has not yet received the title and does not know of the donation.
The land was worth 5,000,000 at the time of donation, August.
Tax Paid in January
a) 1800
b) -7200 refund
c) 7200
d) 0
13. Sarah has donated the ff properties in 2018:
To her granddaughter 2 MacBook Pro worth P120,000 each on January.
To her son, Joseph, a Lamborghini worth P9,300,000. The said is mortgaged for
1,500,000 which was assumed by the donor. Donation happened in March.
To her sister Mary Ann, P50,000 worth of jewelry on February.
To her favorite niece, Nikka, a property worth P2,500,000 which was made orally. On
February.
She also donated some of her properties to the Government agencies on April as follows:
To the Integrated Bar of the Philippines: P200,000
To the DPWH: 320,000
To the Red Cross Foundation: 250,000
To the National Social Action Council: 100,000
She also transferred her house and lot to her daughter in USA she bought for $65,000 on
May and paid P235,000 USA taxes. The FV at time of donation was at $80,000. (USDPHP
= Spot Rate: 50, Discounted Rate 48.9)
After Sarah heard that her friend Lotty is still alive, she gave her title to a farmland in
which Lotty resides. Lotty has not yet received the title and does not know of the donation.
The land was worth 5,000,000 at the time of donation, August.
Tax paid in March is
a) 485400
b) 620400
c) 628400
d) 560400
14. Sarah has donated the ff properties in 2018:
To her granddaughter 2 MacBook Pro worth P120,000 each on January.
To her son, Joseph, a Lamborghini worth P9,300,000. The said is mortgaged for
1,500,000 which was assumed by the donor. Donation happened in March.
To her sister Mary Ann, P50,000 worth of jewelry on February.
To her favorite niece, Nikka, a property worth P2,500,000 which was made orally. On
February.
She also donated some of her properties to the Government agencies on April as follows:
To the Integrated Bar of the Philippines: P200,000
To the DPWH: 320,000
To the Red Cross Foundation: 250,000
To the National Social Action Council: 100,000
She also transferred her house and lot to her daughter in USA she bought for $65,000 on
May and paid P235,000 USA taxes. The FV at time of donation was at $80,000. (USDPHP
= Spot Rate: 50, Discounted Rate 48.9)
After Sarah heard that her friend Lotty is still alive, she gave her title to a farmland in
which Lotty resides. Lotty has not yet received the title and does not know of the donation.
The land was worth 5,000,000 at the time of donation, August.
Total Net Gifts
a) 13890000
b) 13640000
c) 17182000
d) 15052000
15. Sarah has donated the ff properties in 2018:
To her granddaughter 2 MacBook Pro worth P120,000 each on January.
To her son, Joseph, a Lamborghini worth P9,300,000. The said is mortgaged for
1,500,000 which was assumed by the donor. Donation happened in March.
To her sister Mary Ann, P50,000 worth of jewelry on February.
To her favorite niece, Nikka, a property worth P2,500,000 which was made orally. On
February.
She also donated some of her properties to the Government agencies on April as follows:
To the Integrated Bar of the Philippines: P200,000
To the DPWH: 320,000
To the Red Cross Foundation: 250,000
To the National Social Action Council: 100,000
She also transferred her house and lot to her daughter in USA she bought for $65,000 on
May and paid P235,000 USA taxes. The FV at time of donation was at $80,000. (USDPHP
= Spot Rate: 50, Discounted Rate 48.9)
After Sarah heard that her friend Lotty is still alive, she gave her title to a farmland in
which Lotty resides. Lotty has not yet received the title and does not know of the donation.
The land was worth 5,000,000 at the time of donation, August.
Tax credit allowed
a) 234720
b) 240000
c) 220620
d) 235000
16. Sarah has donated the ff properties in 2018:
To her granddaughter 2 MacBook Pro worth P120,000 each on January.
To her son, Joseph, a Lamborghini worth P9,300,000. The said is mortgaged for
1,500,000 which was assumed by the donor. Donation happened in March.
To her sister Mary Ann, P50,000 worth of jewelry on February.
To her favorite niece, Nikka, a property worth P2,500,000 which was made orally. On
February.
She also donated some of her properties to the Government agencies on April as follows:
To the Integrated Bar of the Philippines: P200,000
To the DPWH: 320,000
To the Red Cross Foundation: 250,000
To the National Social Action Council: 100,000
She also transferred her house and lot to her daughter in USA she bought for $65,000 on
May and paid P235,000 USA taxes. The FV at time of donation was at $80,000. (USDPHP
= Spot Rate: 50, Discounted Rate 48.9)
After Sarah heard that her friend Lotty is still alive, she gave her title to a farmland in
which Lotty resides. Lotty has not yet received the title and does not know of the donation.
The land was worth 5,000,000 at the time of donation, August.
Total tax paid in year 2018
a) 583400
b) 612780
c) 790920
d) 668400
 SEATWORK NO.3- ESTATE TAX
(CONCEPT AND GROSS ESTATE THEORY)
1. 1st statement: The perfection of a donation inter vivos is at the moment when the
donor knows the acceptance of the done.
2nd statement: Donation moris causa is subject to donor’s tax
a) 1st statement is true
b) 2nd statement is true
c) Both are false
d) Both are true
2. The following are included in the gross estate, except
a) Decedent’s interest
b) Revocable transfer
c) Prior interest
d) Appraisal surplus
3. 1st statement: If the gift is personal property, the fair market value of the property
given before the time of the gift shall be the value of the gross gift.
2nd statement: If the gift is real property, the fair market value at the time of
donation or the value fixed by the assessor, whichever is lower?
a) 2nd statement is true
b) Both are false
c) 1st statement is true
d) Both are true
4. The following shall file the estate tax return, except
a) Decedent
b) Executor
c) Administrator
d) Any legal heir
5. 1st statement: Only the estate of a citizen or a resident alien at the time of death
can claim tax credit for any estate taxes paid in a foreign country.
2nd statement: Estate tax credit is a remedy against international double taxation
a) 1st statement is true
b) 2nd statement is true
c) Both are true
d) Both are false
6. Estate tax return is required in cases of
a) Where gross value of estate exceeds Php 250,000
b) Estates are unregistered
c) Transfers subject to tax
d) Annulment
7. The following are transactions and acquisitions exempt from transfer tax except:
a) The merger of usufruct in the owner of the naked title.
b) Transmission or delivery of the inheritance or legacy by the fiduciary heir or
legatee to the fideicommisary.
c) Transmission on the first heir or donee in favor of another beneficiary in
accordance with the desire of the predecessor.
d) All bequests, devises, legacies or transfers to social welfare, cultural
and charitable institutions.
8. Proceeds of life insurance includible in the taxable gross estate.
a) Amount receivable by any beneficiary designated in the insurance
policy.
b) Amount receivable by any beneficiary revocable, designated in the policy
by the insured.
c) Proceeds of group insurance taken out by a company for employee
d) Insurance proceeds from SSS or GSIS.
9. In determining the net estate of a decedent, which of the following rules is not
correct?
a) Real estate abroad is not included in the gross estate of a decedent who is
a resident alien.
b) Real estate abroad is not included in the gross estate of a decedent who is
a resident alien.
c) All
d) Vanishing deduction must be subject to limitations.
10. Y, a Filipino resident, died on November 5, 2018 and his estate incurred losses
due to:
1st loss: From file on February 2, 2018 of improvement on his property not
compensated by insurance.
2nd loss: From flood on February 25, 2019 of household furnitures also not
compensated by insurance.
a) Both losses are not deductible.
b) 1st loss is not deductible and 2nd loss is deductible.
c) Both losses are deductible from gross estate.
d) 1st loss is deductible and 2nd loss is not.
11. The property, rights and obligations of a person which are not extinguished by his
death and those which have been accrued thereto since the opening of
succession:
a) Income
b) Properties
c) Estate
d) Assets
12. The following are the requisites in order that claims against the decedent’s estate
may be deductible, except:
a) They must have been prescribed
b) They must be enforced by the claimants
c) They must be existing against the estate
d) They must be reasonably certain as to amounts
13. A succession to properties mentioned in the last will and testament, where the
values of the properties shall have increased from the time the last will and
testament was executed is:
a) Mixed succession
b) Escheated to the estate on the increased value
c) Intestate succession
d) Testamentary succession
14. A successor to an estate, whether in a last will and testament or not:
a) Legatee
b) Compulsory heir
c) Heir
d) Devisee
15. Which of the following statements is wrong?
a) The gross estate of a non-resident citizen of the Philippines would
include only properties in the Philippines
b) The gross estate of a non-resident citizen would include all properties
regardless of location
c) The gross estate of a resident, not citizen of the Philippines would include
all properties regardless of location
d) The gross estate of a non-resident, not citizen of the Philippines would
include intangible properties in the Philippines
16. The personal properties of a non-resident, not citizen of the Philippines, would not
be included in the gross estate if:
a) The tangible personal property is in the Philippines
b) The intangible personal property is in the Philippines
c) The personal property is shares of stock of a domestic corporation 90% of
whose business is in the Philippines
d) The intangible personal property is in the Philippines and the
reciprocity clause of the estate tax law applies
17. Which of the following is not included in the gross estate?
a) Revocable transfer where the power of revocation was not exercised
b) Revocable transfer where the consideration is not sufficient
c) Proceeds of life insurance where the beneficiary designated is the estate
and the designation is irrevocable
d) Proceeds of life insurance where the beneficiary designated is the
mother and the designation is irrevocable
18. Which of the following exempt transmissions will still require inclusion of the
property in the gross estate?
a) Legacy to a charitable institution whose administrative expenses did
not exceed 30% of the legacy
b) Transfer from a first heir to a second heir designated by the decedent
c) Merger of the usufruct in the owner of the naked tile
d) Death benefits under the GSIS and SSS
19. Which statement is wrong? The gross estate shall be valued:
a) In real property, the zonal value, which may be higher than the fair market
value
b) At its fair market value at the time of death.
c) At its fair market value at the time the return is due.
d) In the case of shares of stock, at book value.
20. A revocable transferred to the following circumstances: Fair market value at the
time of transfer – P300,000; fair market value at the time of death – P180,000;
consideration received when transferred – P200,000:
a) Shall be included in the gross estate at P200,000
b) Shall be included in the gross estate at P180,000
c) Shall not be included in the gross estate
d) Shall be included in the gross estate at P100,000
21. Which of the following statements is wrong? A claim against an insolvent person,
with no properties whatsoever is
a) Included in the gross estate
b) Needs no preliminary filing of a case against the insolvent
c) If arising out of a debt instrument of the insolvent, the debt instrument must
be notarized
d) Not included in the net taxable estate
22. Which of the following is not true: A transfer in contemplation of death for less than
full and adequate consideration in money may result in a:
a) Nothing included in the gross estate
b) Value to consider as taxable income
c) Value included in the gross estate
d) Value included in the net estate
23. Which statement is wrong: A forgiveness or cancellation of indebtedness:
a) May result in a donation to the debtor
b) May result in an income to the debtor
c) None
d) May result in an inclusion of value in the gross estate
24. In computing the gross estate of a decedent:
a) All of the statements are correct
b) If he was a non-resident who was not a citizen of the Philippines, tangible
and intangible personal properties, located in the Philippines, shall be
included
c) If he was a non-resident, but citizen of the Philippine, tangible and intangible
properties, regardless of location, shall be included
d) If he was a resident who was not a citizen of the Philippines, tangible and
intangible properties, regardless of location, shall be included.
25. Which statement is correct? Real property with cost of P300,000 and the fair
market value at the time of death of P1,000,000, but subject to a mortgage of
P200,000:
a) Shall be in the gross estate at the decedent’s equity of P800,000
b) Shall be in the gross estate at the owner’s equity of P100,000
c) Shall be in the net taxable estate at P800,00
d) Shall be in the gross estate at P300,000
 SEATWORK NO.4- ESTATE TAX
(CONCEPT AND GROSS ESTATE PROBLEM)

1. Mr. Jose married Josephine on February 2, 1988. Josephine died on February

14,2018. On that date, the spouses had the following properties:
Car, donated to Mr. Jose on June 14, P1,200,000
2010
Investments- inherited by Josephine on 2,800,000
Feb. 4, 1990 when its value was P2M
House and Lot – salaries of Mr. Jose and 4,000,000
Josephine
Cash income of car 400,000

Compute the separate property of Mr. Jose

ANSWER:

Compute the separate property of Josephine

ANSWER:

Compute the gross estate

ANSWER:
2. Mr. A died on June 3, 1987 but his estate had not paid tax since then. He had the
following properties at the time of his death:
Properties of life insurance irrevocably P2,000,000
designated to his son
Properties for exclusive use of Mr. and 300,000
Mrs. A
Properties inherited by Mrs. A on June 4,000,000
1,1987
Properties from salaries of Mr. A and Mrs. 1,400,000
A
Properties which accumulated since June 400,000
3, 1987
Common properties of the spouses used 230,000
by the family since Mr. A’s death

Compute the gross estate of Mr. A

ANSWER:

3. Mrs. Enriquez, a government employee, died in a car accident which resulted in the
total destruction of their family car.
She left the ff properties:
Receivable from the car insurance P 800,000
Company
Benefits from GSIS 1,000,000
Family home, bought using Mr. Enriquez’ 2,000,000
salaries
Jeepney, bought using Mrs. Enriquez’s 700,000
salaries
Value of the car immediately before the 800,000
accident
Clothing, shoes and apparels of Mr. 40,000
Enriquez
Clothing, shoes and apparels of Mrs. 60,000
Enriquez
Wedding gift, received by the spouses on 120,000
April 1, 1990

Compute the gross estate of Mrs. Enriquez.

ANSWER: 3,680,000
4. Mrs. Vincent died. The properties of the spouses at the time of death were compiled
as follows:
Properties of Mr. Vincent before marriage P2,000,000
Properties of Mrs. Vincent before 4,000,000
marriage
Properties acquired by Mr. and Mrs. 2,000,000
Vincent during marriage form their joint
industry
Properties donated to Mr. Vincent during 1,000,000
marriage
Income of donated properties 200,000

Mr. Vincent was previously married. His first wife died leaving no descendants in the
marriage.
Assuming the absolute community of property, compute the gross estate.
ANSWER: 8,000,000

5. Mrs. Young died leaving the ff properties to Mr. Young:

Jewelry of Mrs. Young, gifted by a friend P200,000
during marriage
Jewelry of Mr. Young, inherited before 400,000
marriage
Other exclusive properties for personal 50,000
use of Mr. Young
Other exclusive properties for personal 70,000
use of Mrs. Yong
Family Home 2,000,000
Other family properties 1,200,000

Compute the gross estate of Mrs. Yong under the absolute community of
property.
ANSWER: 3,870,000
6. Mr. Dino Jones died leaving the ff properties:
Car, purchased using GSIS retirement P500,000
benefits
Interest in a joint venture business 3,000,000
House and Lot, separate property of his 2,000,000
wife
Proceeds of insurance, revocably 1,500,000
designated to wife
Total P7,000,000

Compute the amount to be included in gross estate?

ANSWER: 4,500,000

7. An inventory total of the properties of Mrs. Tina Taray and his widower is shown
below:
Separate property of Mrs. Taray P6,000,000
Separate properties of Mr. Taray 1,500,000
Value of family business 2,000,000
Other properties owned jointly by Mr. and 3,000,000
Mrs. Taray
Total P12,500,000

Compute the gross estate of Mrs. Taray.

ANSWER: 11,000,000

8. On September 30 ,2014, Mr. Pogi Nalang died in an accident. Few hours later his
wife, Maganda Nalang, died of heart-attack upon learning of Mr. Pogi’s death. The
spouses had a son who is the only heir to their properties.
The properties of the spouses on September 30 were:
Separate properties of Pogi P3,000,000
Separate properties of Maganda 5,000,000
Common properties of the spouses 8,000,000

Compute the Pogi’s gross estate:

ANSWER: 11,000,000
 SEATWORK NO.5- ESTATE TAX
(DEDUCTIONS FROM GROSS ESTATE, COMPUTATION AND FILING
OF ESTATE TAX THEORY)

1. Which of the following is not a deduction from the gross estate under the TRAIN
LAW?
a) Legacy to a charitable institution
b) Taxes
c) Losses
d) Legacy to the government
2. Which of the following statements is wrong? Property subject to vanishing
deduction should be:
a) If the decedent was a citizen and resident of the Philippines, the property
may be located anywhere
b) If the decedent was a citizen or resident of the Philippines, the property
should be located in the Philippines
c) If the decedent was not a citizen nor resident of the Philippines, the property
should be located in the Philippines
d) If the decedent was not a citizen but a resident of the Philippines, the
property should be located in the Philippines
3. One of the following statements is wrong. Which is it? Vanishing deductions is
allowed if the decedent is
a) A resident alien and on property in the Philippines
b) A resident citizen, and on property located in the Philippines
c) A resident citizen, and on property located outside the Philippines
d) A non-resident citizen, and on property in the Philippines
4. If the decedent was a citizen or resident of the Philippines, which is deductible
even if the property is located outside the Philippines?
a) Family home
b) Transfer for public purposes
c) Vanishing deduction
d) None of the above
5. The decedent was married and under the conjugal partnership of gains. An
obligation of P100,000, incurred during the marriage and secured by a mortgage
of exclusive property is:
a) A deduction from the gross estate at P100,000 against conjugal
property
b) A deduction from the gross estate at P100,000 against exclusive property
c) A deduction of P50,000 from the gross estate against conjugal property
d) A deduction of P100,000 from the gross estate against exclusive property,
but with a receivable of P50,000 from the surviving spouse
6. One of the following statements is wrong: Vanishing deduction shall be allowed to
the estate of a resident citizen:
a) If no vanishing deduction was allowable to the prior estate
b) As long as the property is included in the gross estate
c) Even if the grantor of the property is still alive
d) Even on substitute property
7. Which statement is correct? Claims against the estate, as deduction from the gross
estate:
a) Represents obligations enforceable during the lifetime of the
decedent
b) Is sufficient for deductibility if a valid obligation under the law on obligations
c) If unpaid mortgage of a non-resident, not citizen of the Philippines, the
property should be included in the Philippine gross estate
d) Should always be evidence by a notarized document
8. Which of the following is deductible from the gross estate?
a) Income tax paid on income received after death.
b) Property taxes not incurred prior to death
c) Estate tax paid to a foreign country
d) Donor’s tax accrued prior to death
9. Which statement is wrong? Losses are deductible from the gross estate
a) If arising from earthquake
b) If not compensated by insurance or other form of indemnity
c) Should be of property included in the Philippine gross estate
d) Must be incurred during the settlement of the estate
10. One of the following statements is wrong. Claims against insolvent persons
a) Is a deduction even if the debtor had some properties
b) Should always be included in the gross estate
c) If entirely uncollectible, may be omitted in the computation for the net
taxable estate
d) Can be a deduction even if secured by a mortgage
11. Which is wrong? Deduction for transfers for public purposes:
a) Means device in a last will and testament to the government
b) Means legacy in a last will and testament to the government
c) Includes any kind of transfer to the government for public purposes
d) Will not include legacies to charitable institutions
12. Statement 1: Vanishing deduction for the estate of a non-resident, not citizen of
the Philippines, is allowed only if the property is located in the Philippines.
Statement 2: Deduction for transfers for public purposes for the estate of a non-
resident, not citizen of the Philippines, is allowed only if the property is located in
the Philippines
a) The first statement is correct and the second statement is wrong
b) Both statements are correct
c) Both statements are wrong
d) The first statement is wrong and the second statement is correct
13. When a donation which paid by a donor’s tax was actually a donation mortis causa,
as ascertained by the Bureau of Internal Revenue, which of the following is true?
a) The donation shall be required to pay the estate tax on its proper
valuation at the time of death, and there can be a refund for the wrong
payment of the donor’s tax
b) The donation shall be required to pay the estate tax so that the estate tax
computed shall be reduced by the donor’s tax already paid
c) The donation shall not pay any transfer tax anymore
d) The donation has to pay the estate tax in addition to the donor’s tax
previously paid
14. Which statement is correct? Under the system of conjugal partnership of gains and
absolute community of property:
a) Property acquired during the marriage by inheritance or gifts is
exclusive property under both systems
b) Property owned before the marriage is exclusive property under both
systems
c) Income of property under (a) is exclusive property under both systems
d) Property under (a) may be conjugal or community when expressly declared
by the benefactor as conjugal or community
15. Estate tax credit for foreign estate tax paid is available to the estate of
a) Resident or citizen of the Philippines
b) Non-resident alien
c) All kinds of decedents
d) None of the above
16. An executor or administrator, after paying the estate tax, and to escape a future
liability for a deficiency estate tax, must secure a written discharge for personal
liability from:
a) The heirs
b) The Commissioner of Internal Revenue
c) The court where the estate was being settled
d) None of the above.
17. Which statement is wrong? As estate tax return is required to be filed:
a) When the estate is not subject to estate tax but the gross estate
exceeds P250,000
b) When the estate is subject to the estate tax
c) Where the gross estate includes registered real property
d) None of the above
18. First statement: The period within each the estate tax return may be filed may be
extended by the Bureau of Internal Revenue for a period not exceeding thirty days.
Second statement: The estate tax return may be signed by any one of the heirs if
the estate is not settled judicially
a) Both statements are wrong
b) Both statements are correct.
c) First statement is correct but second statement is wrong
d) First statement is wrong but second statement is correct
19. First statement: The payment of the estate tax may be extended for a period not
exceeding five years if there is judicial settlement of the estate.
Second statement: The payment of the estate tax may be extended for a period
not exceeding two years if there is extrajudicial settlement of the estate
a) Both statements are true
b) Both statements are false
c) First statement is true while second statement is false
d) First statement is false while second statement is true
20. Which of the following statements is not correct?
a) No judge shall order a distribution of any part of the estate to an heir without
a certification from the Bureau of Internal Revenue that the tax has been
paid
b) A bank shall not allow the co-depositor of a deceased to withdraw from the
joint bank account without a certification from the Bureau of Internal
Revenue that the tax has been paid
c) No Register of Deeds shall transfer to any heir the title of a decedent to real
property without a certification from the Bureau of Internal Revenue that the
tax has been paid
d) None of the above
21. When an estate is settled extra-judicially, the estate tax return may be filed and the
estate tax paid
a) None of the above
b) By any of the heirs, with a right or reimbursement from the other heirs
c) Only by the heir with written authority from the other heirs
d) By each of the heirs, the payment being for his distributive share in the
estate tax
22. Statement 1: There will be a penalty to pay even if the estate tax return was filed
and the estate tax was paid if notice of death was not given to the Bureau of
Internal Revenue under TRAIN LAW
Statement 2: A notice of death is given at any time within 6 months to 1 year after
the decedent’s death.
a) Both statements are wrong
b) Both statements are correct
c) First statement is correct but second statement is wrong.
d) First statement is wrong but second statement is correct
23. Statement 1: When an estate under administration has income producing
properties, the annual income of the estate becomes part of the estate subject to
the estate tax.
Statement 2: When an estate under administration has income producing property,
the annual income is not part of the estate subject to estate tax but when distributed
in the year that the income was earned becomes income to the heir subject to
incomes tax.
a) First statement is correct, but second statement is wrong
b) First statement is wrong, but second statement is correct
c) Both statements are correct
d) Both statements are wrong
24. Which of the following statements is false? When an estate tax return had been
filed and the estate tax had been paid but subsequently, because of errors in the
return, a deficiency estate tax has to be paid:
a) Which of the following statements is false? When an estate tax return had
been filed and the estate tax had been paid but subsequently, because of
errors in the return, a deficiency estate tax has to be paid:
b) The Bureau of Internal Revenue can ask payment from the heirs to whom
the estate had been distributed
c) The Bureau of Internal Revenue can still ask the executor or administrator
to pay, even if the heirs have dissipated the inheritance, if the executor or
administrator did not ask for a written discharge from liability from the
Bureau of Internal Revenue
d) The Bureau of Internal Revenue shall have a lien on the properties of the
estate once a demand for payment had been made
25. In case, Ramwel is a non resident not a citizen of the Philippines. How much
standard deduction allow against his gross estate?
a) 500,000
b) 100,000
c) 1,000,000
d) 0
 SEATWORK NO.6- ESTATE TAX
(DEDUCTIONS FROM GROSS ESTATE, COMPUTATION AND FILING
OF ESTATE TAX PROBLEM)
1. Mr. Arnold Reyes, Filipino citizen, married to Bettina, died on February 14, 2018, leaving the
following properties:
(a) House and lot in Manila – exclusive (Zonal Value – P3,000,000; Assessor’s Value –
P2,500,000)
(b) Real property in Q.C. acquired during marriage – conjugal (Zonal Value – P1,500,000;
Assessor’s Value P2,000,000)
(c) Family home in Makati City acquired during marriage – conjugal (Zonal Value – P2,200,000;
Assessor’s Value – P2,100,000)
(d) Car acquired during marriage – conjugal (FMV – P1,400,000)
(e) 500 shares of DYI Inc. (domestic, traded in stock exchange) – exclusive (Average share
price = P4,000/share)
(f) Proceeds of life insurance where estate is beneficiary – conjugal (P1,000,000)
(g) 1,000 shares of ABC Corporation (domestic, not traded in stock exchange) – exclusive
(NAV/share – P100, Book value/share – P50)
Deductions claimed by the estate of Mr. Reyes

Legacy given in favor of Philippine government P300,000

Claims against the estate 100,000
Funeral Expenses 180,000
Judicial expenses 600,000
Mortgage attaching to house and lot in Manila 100,000

(a) What is the total gross estate?

ANSWER: 11,650,000
(b) What is the total amount of ordinary deductions?
ANSWER: 500,000
(c) What is the share of the surviving spouse in the net state?
ANSWER: 3,250,000
(d) What is the total net taxable estate?
ANSWER: 1,800,000
(e) What is the estate tax due?
ANSWER: 108,000
 COMPREHENSIVE PROBLEM
Later, in December 31, 2026, Makiri married P. Nikot, the best friend of P Nalad
Unfortunately, their marriage did not last long when Makiri died on February 14, 2028,
one day after giving birth to their first child. An inventory of their properties and
obligations shows.
Makiri P. Nikot
a. Property owned before marriage Php 8,000,000 Php 1,000,000
b. Income of property in (a) above 2,000,000 200,000
c. Property acquired during marriage:
I. By gratuitous title 10,000,000 2,000,000
II. By onerous title 2.000.000 3,000,000
d Income of property acquired during marriage :
I. By gratuitous title 4,000,000 1,000,000
II. By onerous title 400,000 100,000
e. 10-door apartment units purchased from money
given by her father during the marriage FMV 10,000 000

f. Proceeds of life insurance where the beneficiary is

I. P. Nikot-revocable 1,200,000
II. Her Estate - irrevocable 2,400,000

g. Receipt of proceeds of insurance on property owned

before the marriage which were destroyed by tire on
February 10, 2027
I. FMV on February 10, 2027 9,000,000 2,000,000
II. Insurance recovery 7,000,000 1,000,000
h. The property acquired during marriage - by gratuitous
Title were acquired thru inheritance:
I. FMV at time of inheritance 4 years ago 9,000,000
II. FMV at time of inheritance 3 years ago 3,000,000
i. Residential house and lot used as family home (purchased by
Makiri during marriage where 50% came from her sister as
birthday it and 50% was borrowed from ABC Bank payable
on December 31, 2030 evidenced by a notarized loan
agreement) at fair market value 8,000,000
j. Gambling winnings 200,000
k. Receivable from a friend who is insolvent 1,000,000
l. Accrued taxes:
i. Before the death of Makiri 400,000
ii. After the death of Makiri 200,000
m. Funeral expenses, 50% covered by a memorial plan
and 50% stilt unpaid 800,000
n. Cash on hand and in bank 8,000,000 800,000
o. Unpaid mortgage on property acquired during marriage
by onerous inte
i. By Makiri 600,000
ii. By P. Nikot 400,000

If their pre-nuptial agreement provides for conjugal partnership of gains:

1. The exclusive property of Makiri is
P32,000,000

2. The gross estate of Makiri is

P62,700,000

3. The vanishing deduction is

P1,616,268

4. The net taxable estate is

P29,533.732

5. The exclusive property of P. Nikot is

P3,000,000

If the spouses have no pre-nuptial agreement,

6. The exclusive property of Makiri is
P24,000,000

7. The gross estate of Makiri is

P62,700,000

8. The net taxable estate is

25,533,732