Cpa Reviewer in Taxation

Accountant’s fees and audit fees 5,000
Medical expenses-2 months before decedents death 50,000
Unpaid mortgage on the property located abroad 40,000
Claims against the estate 25,000
Properties:
Real Property located in Osaka, Japan P2,000,000
Lot situated in Davao City 1,000,000
Shares of Stocks in Japanese Corporation 600,000
Other tangible personal properties-Phils 1,000,000
86. The gross estate on the estate of Mhar Dehrer is-
a. P5,000,000 c. P2,000,000
b. 1,000,000 d. 2,600,000
 C
Lot In Davao City P1,000,000
Other Tangible Properties 1,000,000
Properties/gross estate-Philippines 2,000,000
87. In Number 86 above, if the total deductions allowed amount to P60,000, how
much is the amount of funeral expenses abroad?
a. P100,000 c.P145,000
b. 80,000 d. 55,000
 D
Properties- Philippines P2,000,000
Properties- Abroad:
Real Property- Japan P2,400,000
Stocks-Japanese Corporation 600,000 3,000,000
Total gross estate 5,000,000
Total ELIT (P5,000,000/2,000,000 x P60,000) P 150,000

Less: Available expenses
Funeral expenses-Philippines 25,000
Accountant’s fees and audit fees 5,000
Unpaid Mortgage 40,000
Claims against the estate 25,000 95,000
Funeral expenses abroad 55,000
To check:
Actual funeral expenses (P25,000 + 55,000) P80,000
5% x P 2,000,000 100,000
Deductible funeral expenses (lower) 80,000
88. Which of the following properties of Etang who died December 4, 2011 is
subject to vanishing deduction?
Property 1- Car purchased 3 years ago from Mitsubishi Motors, Batangas

City.
Property 2- Land inherited from her mother in 2007 the estate tax
thereon has not been paid.
Property 3- Donation from a friend in 2006.
Property 4- Community property inherited December 2, 2006 or five (5)

days before marriage.
Property 1 Property 2 Property 3 Property 4
a. No No Yes Yes
b. No No Yes No
c. Yes No No Yes
d. Yes Yes No No
 B
The car must have been acquired by the decedent either by the donation
or by inheritance. Acquisition by purchase is not subject to vanishing
deductions on the purchaser.
To be entitled to a vanishing deduction, the tax on the prior transfer

must have been paid.
Property 4 has been acquired by the present decedent more than (5) years
already at the time of her death.
89. Which of the following is a multiplier deduction for purposes of computing

the vanishing deduction?
a. benefits received under RA 4917
b. Medical expenses
c. Standard deduction
d. Transfer for public purpose
 D
90. Statement 1: Vanishing deduction is always a deduction from the exclusive
properties of the decedent.
Statement 2: A property is subject to vanishing deduction if it has been

acquired thru exchange with a property inherited within 5 years prior to
the death of the present decedent.
a. Statement 1 is true; Statement 2 is false.

b. Statement 1 is false; Statement 2 is true.
c. Both statements are true.
d. Both statements are false.
 B
91. Christopher died on October 5, 2011 leaving a parcel of land valued at

P800,000 to his nephew, Mendell. On June 10, 2013, Mendell married
Christita. Prior to the celebration of the marriage, they orally agreed
that they shall be governed by the conjugal partnership of gains.
Which statement is correct?
a. The spouses shall be governed by the conjugal partnership of gains.

Thus, if Mendell dies on May 20, 2014 the vanishing deduction shall be
classified as a deduction from his exclusive properties.
b. The spouses shall be governed by the absolute community of property
regime. Thus, if Christita dies on May 20, 2014 the land shall be
subject to vanishing deduction of one-half of its value.
c. The spouses shall be governed by the absolute community of property
regime. Nonetheless, the death of Christita on may 20, 2014 will not
subject her share in the land to a vanishing deduction.
d. The spouses shall be governed by the absolute community of property
regime. Thus, if Mendell dies on May 20, 2014 only his one-half share
in the land shall be subject to a vanishing deduction.
 C
The spouses shall be governed by the absolute community of property
regime because the pre-marital agreement was not reduced in writing.
The death of Christita will not subject the property to a vanishing

deduction because it was Mendell, her husband, who acquired the property
by gratuitous title.
92. Which of the following statements about “vanishing deduction” is true?
a. For a vanishing deduction to be deductible, the property must have

formed part of the gross estate situated in the Philippines of the prior
transferor.
b. A family home of a non resident alien may be claimed as vanishing
deduction if it has been inherited within five (5) years and the estate
tax on the previous transfer has been paid at the time of death of the
present decedent.
c. Vanishing deduction shall be allowed on the estate of the present
decedent even if the prior transferor is still alive.
d. For a vanishing deduction to be deductible there should always be two
deaths within five years from receipt of property.
 C
A vanishing deduction may be allowed even if the property was situated
outside the Philippines during the prior transfer, provided that it is
situated in the Philippines at the time of death of the present
decedent.
A family home is situated outside the Philippines is nit deductible

either as a family home or as a vanishing deduction because these two
items of deduction require that the property must be situated within the
Philippines.
In vanishing deduction, the first transfers of the property maybe inter

vivos. Thus, the prior transferor may still be living at the time of
death of the present decedent, and two deaths within a period of five
years is not necessary for its deductibility.
93. All of the following, except one, are not deductible from its gross estate
of a non resident alien
a. Vanishing deduction c. Family home
b. Medical expenses d. Standard deduction
 A
Medical expenses, family home and standard deduction are not deductible
from gross estate of a non resident alien without condition.
Vanishing deductions are deductible if the usual requisites are complied

and the property is situated in the Philippines.
94. Rodolfo, a citizen of the Philippines and a resident of Bacolod City, died
estate on May 10, 2011. Among his gross estate are properties inherited
from his deceased father who died April 4, 2008. What percentage of
deduction will be used in computing the amount of vanishing deduction?
(RPCPA)
a. 80% of the value taken as basis for vanishing deduction.

b. 100% of the value taken as basis for vanishing deduction.
c. 60% of the value taken as basis for vanishing deduction.
d. 40% of the value taken as basis for vanishing deduction.
 D
The interval of time from the date of death of father to the date of
death of Rodolfo is 3 year, 1 month and 6 days, computed as follows:
Year Month Day

2006 5 10
2003 4 4
3 1 6
95. Val Hallada died on November 20, 2011. Some of the properties he left are
the following:
Market Value
Mode of Date of Date Death of Val

Assets Acquisition Acquisition Acquired Hallada
Land Donation 7-3-07 P 500,000 P 350,000
Car Purchase 10-2-10 800,000 980,000
Other information:
1. The gross estate of the decedent amounts to P3,000,000.

2. The land was mortgaged for P50,000 which was deducted in prior estate
and Val Hallada paid the same before he died.
3. The allowable deductions total P125,000, which includes medical expenses
of P30,000. It excludes bequest to a charitable institution in the
amount of P50,000.
The vanishing deduction is (PPCPA)-

a. P 58,100 c. P 67,783
b. 57,500 d. 67,083
 A
Lower value 350,000
Lss: Mortgage paid 50,000
Initial Basis 300,000
Less: Deductions (pro-rated)
[300,000/3,000,000x(125,000-30,000)] 9,500
Base 290,000
Rate (morethan 4 years; not more than 5 years) 20%
Vanishing deduction 58,100
To be subject to vanishing deduction, the property must have been

acquired by the present decedent thru inheritance or donation inter
vivos. Those that were acquired by onerous transfer are not subject to
said deduction.
Bequests to charitable institutions and medical expenses are not part of

the multiplier deductions. Only the items under expenses, losses,
indebtedness, taxes and transfers for public purpose, if any, are
included as part of said deductions.
96. In determining the net estate of the decedent, which of the following
rules is correct? (RPCPA)
a. Real Estate abroad is included in the gross estate of a decedent who is

a nonresident alien.
b. Shares of stocks being intangible property shall be included in the
decedent’s gross estate wherever situated.
c. Vanishing deductions must be subject to limitations.
d. Funeral expenses are deductible to the extent of 5% of the total gross
estate but not exceeding P100,000.
 C
97. Pepe died on August 15, 2011. His data are as follows:
Community properties 2,000,000
Exclusive properties of Pepe 3,000,000
Exclusive properties of Pepe’s wife 1,000,000
Deductions (except standard deduction) 700,000
Included in the P3,000,000 is a parcel of land worth pf P2,000,000 and a

car worth P400,000, respectively.
The land was donated to him by his uncle on May 4, 2009 with a value of
P150,000. At the time of donation, yhe land was mortgaged for P 30,000
which was paid by his uncle. The car has a value of P500,000 when it was
inherited by pepe from his mother 2 ½ years ago and mortgaged for P50,000
which was paid by pepe before he died.
The vanishing deduction on the estate of Pepe is-
a. P 258,000 c. P 283,800
b. 262,520 d. None
 A
Lower value of:
Land 150,000
Car 400,000
Value to take 550,000
Less: Mortgage paid on car 50,000
Less: Deductions(500,000/5,000,000)xP700,000) 70,000
Base 430,000
Rate(more than 2 years, not more than 3 years) 60%
If the same rate shall be applied to both properties, the vanishing

deduction shall be computed jointly for both properties. However, if
different rates shall be applied separate computation is necessary.
98. Elopre, married June 5, 2009 died on April 29, 2011 with the following
data: Gross estate – community property, P3,000,000; exclusive, P2,000,000.
Said amount includes a land which he received as gift from his father a
month before the marriage, valued at P540,000. His father mortgaged the
land for P20,000 which was paid by Elopre. Elopre mortgaged also said land
for P50,000 but was able to pay only P20,000 until his death. Expenses
claimed (excluding the unpaid mortgage) amounted to P170,000.
The vanishing deduction is-
a. P 388,800 c. P 384,000
b. None d. 380,000
 C
Less: Mortgage paid 40,000
Initial basis 500,000
Amount claimed 170,000
Unpaid mortgage (50,000-20,000) 30,000
Total 200,000
(500,000/5,000,000) x200,000 20,000
Base 480,000
Rate(more than 1 year, not more than 2 years) 80%
99. In number 98 above, the net taxable estate is-
a. P 2,016,000 c. P 3,416,000
b. 1,208,000 d. 2,208,000
 D
Community Exclusive Total
Gross estate 3,000,000 2,000,000 5,000,000

Less: Deductions
Ordinary
Amount claimed 170,000
Unpaid mortgage 30,000
Vanishing deduction 384,000 ( 584,000)
Special (Standard Deduction) (1,000,000)
Net estate 3,416,000
Less: Share of surviving spouse
Gross community 3,000,000
Less: Community expenses 584,000
Net Community expenses 2,416,000
Share (2,416,000/2) 1,208,000
Net taxable estate 2,208,000
100. Statement 1: Unpaid loans contracted prior to death may be deducted even
if not notarized if notarization of contracts is not a business policy of
the creditor.
Statement 2: For estate tax purposes, several family homes may be
deducted provided the maximum amount is P1,000,000.
a. Only statement 1 is correct.

b. Both Statements are correct.
c. Only Statement 2 is correct.
d. Both Statements are incorrect.
101. Which of the following statements is false relative to a “family home”?

a. A decedent who was married at the time of death may not have a
deduction for family home.
b. The value of the family home must be included in the gross estate and
claimed as deduction therefrom to a maximum amount of P1,000,000
c. A nonresident shall include the value of his family in the gross estate
but cannot claim such amount as a deduction therefrom.
d. If the family home is allowed a vanishing deduction and a subject of an
unpaid mortgage, the deductible amount should be net of vanishing
deduction and unpaid mortgage.
 D
A decedent may not have a deduction for family home if he or the spouses
do not have such property.
The entire value of the family home is included in the gross estate if
the decedent was a resident or citizen of the Philippines.
To be deductible, the family home must be situated in the Philippines.
However, the maximum allowable deduction is P1,000,000 only.
If the family home is subject to vanishing deduction and an unpaid

mortgage, the amount deductible shall not be diminished by the amount of
the vanishing deduction and unpaid mortgage.
102. Which of the following is true about “medical expenses?”
a. Hospital expenses are deductible only from gross estate if unpaid at the
time of the death of the decedent even if it has already been paid at
the time of filling the estate tax return.
b. Hospital bills which have not yet been paid at the time of death is
deductible from gross estate as claims against the estate.
c. If a person was hospitalized from July 1-30, 2010 and on July 10, 2011
he died, the items of medical expenses listed in the hospital bill which
cannot be directly identified as to the exact date that they were
incurred may be computed proportionately based on the number of days
covered by the one year limit to the total number of days to his
hospitalization.
d. Medical expenses are deducted from the gross estate if they have been
incurred in the Philippines by a Hongkong national who visited the
Philippines as a tourist.
 C
Hospital expenses are deductible as part of medical expenses whether
paid or unpaid at the time of death of the decedent.
Non-resident aliens are not entitled to claim deduction of medical

expenses.
103. Statement 1: An unmarried individual cannot constitute a family home.
Statement 2: Unpaid medical expenses at the time of death are deductible

as “claims against the estate.”
a. Only Statement 1 is correct.

b. Both Statements are correct.
c. Only Statement 2 is correct.
d. Both Statements are incorrect.
 D
104. Which of the following statements is false?
a. In estate taxation, the standard deduction from the gross estate is

always P1,000,000, whether the decedent is married or not.
b. If the decedent was a non-resident alien, the standard deduction shall
be pro-rated according to the ratio of the Philippine gross estate over
the total gross estate.
c. A standard deduction is an item of deduction from gross estate which
does not diminish the distributable estate even if it diminishes the
taxable estate.
d. Benefits received under RA 4917 must be included in the gross estate in
order to be deductible therefrom.
 B
A standard deduction is not deductible from the gross estate of a non
resident alien; it is not also deductible in computing the net
distributable estate regardless of the citizenship or residence of the
decedent.
Items 105 to 109 are based on the following information:
Decedent died leaving a family home composed of the following: House,

owned in common by the spouses worth P1,500,000, and the land in which he
exclusively owned valued at P400,000. At the time was constructed, it had a
cost of P300,000. They also own a vacation house in Baguio worth
P1,200,000.
105. If under conjugal partnership, after its liquidation the family home is
classified as a –
a. Conjugal property
b. Exclusive property of the decedent
c. Exclusive property of the surviving spouse
d. Partly conjugal and partly exclusive of the decedent
 A
106. Under Conjugal partnership, the amount of conjugal portion of the family
home after liquidation is-
a. P 1,900,000 c. P 3,100,000
b. 1,600,000 d. 2,800,000
 B
House 1,500,000
Land 400,000
Total 1,900,000
Less: Reimbursed amount 300,000
Family home 1,600,000
107. Before liquidation, the deductible amount of family home is-

a. P 1,000,000 c. P 800,000
b. 950,000 d. 1,600,000
 A
House, conjugal (1,500,000/2) 750,000
Land, exclusive 400,000
Total 1,150,000
Deductible (limit) 1,000,000
108. Under absolute community of property regime, the value of the family home
is-
a. P 1,900,000 c. P 1,500,000
b. 1,600,000 d. 3,100,000
 A
House, community 1,500,000
Total 1,900,000
109. Under absolute community of property regime, the deductible amount of

family home is-
a. P 1,000,000 c. P 1,900,000
b. 1,500,000 d. 1,150,000
 A
House, community (1,500,000/2) 750,000
Total 1,150,000
Deductible, limit 1,000,000
110. Mama Mathay, widow, a citizen of the Philippines residing in Vancouver,

Canada, died on December 20, 2011 leaving the following properties:
Real property (inherited from her husband on P2,960,000

May 3, 2010 valued then at P2,600,000)
Personal properties in Canada 1,300,000
Real and personal properties in the Philippines 670,000
Family home in Canada 2,500,000
Obligations:
Funeral expenses incurred in Canada 250,000
Other deductible expenses 850,000
The gross estate of Mama Mathay is-

a. P 7,430,000 c. P6,670,000
b. 7,070,000 d. 670,000
 A
Real property 2,960,000
Personal properties, Canada 1,300,000
Real and personal properties 670,000
Family home, Canada 2,500,000
Gross estate 7,430,000
111. The deduction for family home is-
a. P 2,500,000 c.P1,250,000
b. 1,000,000 d. None
 D
A family home which is situated outside the Philippines is not
deductible from gross estate.
112. The vanishing deduction is-
a. P 1,786,056.52 c. P 1,773,708.20
b. 1,772,059.20 d. None
 A
Lower value/Initial basis P 2,600,000.00
Funeral expenses, maximum P 200,000
Other deductible expenses 850,000
Total 1,050,000
(2,600,000/7,430,000x1,050,000) 367,429.34
Base 2,232,570.65
Rate (more than 1 year, not more than 2 years) 80%
Vanishing deduction 1,786,056.52
113. Decedent died leaving Family home composed of the following: House,
conjugal property worth P800,000, and the land in which he exclusively
owned valued at P400,000. He also owns a vacation house in Baguio worth
P700,000
The deductible amount of family home
a. P 800,000 c. P 1,900,000
b. 1,200,000 d. 1,000,000
 A
House, conjugal (P800,000/½) P 400,000
Deductible 800,000
114. The decedent, married, died leaving a family home valued at P1,500,000,
composed of the house (conjugal property) and the lot (exclusive property)
Seventy percent (70%) of the value of the family home pertains to the
house, while thirty percent (30%) pertains to the lot.
The amount deductible from gross estate is-

a. P 1,500,000 c. P 975,000
b. 1,000,000 d. 525,000
 C
House (P1,500,000 x 70%)x ½ P 525,000
Lot (P1,500,000 x 30%) 450,000
Amount deductible 975,000
115. Bong, single and a resident citizen, died with properties constituting
his gross estate of P4,000,000. Actual funeral expenses amounted to
P150,000 and other charges against the estate amounted to P210,000. The net
taxable estate is (RPCPA)
a. P 3,640,000 c. P 3,740,000
b. 2,640,000 d. 2,590,000
 B
Gross estate P 4,000,000
Less: Deductions
Funeral expenses P 150,000
Other charges 210,000
Standard deduction 1,000,000 1,360,000
116. Decedent, married in 1976 died leaving the following:
Real properties 3,000,000

Family house 1,000,000
Other real properties, exclusive of decedent 2,000,000
Family lot, exclusive of decedent 400,000
Funeral expenses 275,000
Medical expenses 650,000
Taxes and losses 1,300,000
The net taxable estate is-

a. P 2,450,000 c. P 2,250,000
b. 1,150,000 d. 1,250,000
 D
Conjugal Exclusive Total

Family house 1,000,000
Other real properties 2,000,000
Family lot 400,000
Gross estate 4,000,000 2,400,000 6,400,000
Less: Deductions
Ordinary
Funeral Expenses, limit 200,000
Taxes and losses 1,300,000 (1,500,000)
Special
Medical expenses, limit ( 500,000)
Standard deduction (1,000,000)
Family home
House(1,000,000/2) 500,000
Lot 400,000 ( 900,000)
Net Estate 2,500,000
Share of Surviving Spouse(4,000,000-1,500,000)x½ 1,250,000
117. Paid medical expenses for confinement at Tigok Hospital,

From May 15-23, 2011 (P20,000 still unpaid) 80,000
Hospitalization expenses 21,500
Expenses for the settlement of the estate:
Acceptance fee, June 28, 2011 20,000
Court fees and other expenses, July 16,2011 12,000
Appearance of lawyer in court, September 5, 2011 2,000
Appearance of lawyer in court, September 5, 2011 2,000
Based on the data given above, how much is the deductible medical and
judicial expenses if the decedent died May 23, 2011?
Medical Expenses Judicial Expenses

a. P 80,000 P 36,000
b. 100,000 36,000
c. 80,000 34,000
d. 100,000 34,000
 D
Medical expenses:
Paid 80,000
Unpaid 20,000
Total 100,000
Judicial expenses:
Acceptance fee 20,000
Court fees 12,000
Appearance fee, September 5, 2011 2,000
Total 34,000
118. Statement 1: Under the conjugal partnership of gains, the vanishing

deduction is always a deduction from exclusive properties.
Statement 2: Under the Absolute community of property regime, the
vanishing deduction is deductible also against community property.
a. True, True c. False, False
b. True, False d. False, True
 A
119. The following data relates to Carl, married two (2) tears ago, died
leaving the following:

Land acquired by donation from his father 3 ½ years ago:
Market value, date of donation 200,000
Market value, date of death 300,000
Judicial expenses 15,000
Unpaid mortgage on land at the time of donation 100,000
Unpaid taxes 10,000
Losses 25,000
Transfer for public purposes 35,000
Carl paid P60,000 to the mortgagee of the land a year before his
death. Assuming Carl was under conjugal partnership of gains, the total
ordinary deductions from exclusive property is-
a. P 49,600 c. P 124,600
b. 89,000 d. None
 C
Deductions from exclusive property:
Unpaid mortgage on land(100,000-60,000) 40,000
Transfer for public purpose 35,000
Total 124,600
Computation of Vanishing deduction:

Value date of donation (lower value) 200,000
Funeral expense 35,000
Unpaid mortgage (100,000-60,000) 40,000
Unpaid taxes 10,000
Losses 25,000
Transfer for public purposes 35,000
Total 160,000
(140,000/14,000,000x160,000) 16,000
Base 124,000
Rate 40%
Vanishing Deduction 49,600
120. In Problem 119 above, assuming that Carl was under absolute community of
property regime, the total amount deductible from the community property
is-
a. P 125,000 c. P 174,000
b. 134,600 d. None
 C
Unpaid mortgage (100,000-60,000) 40,000
Unpaid taxes 10,000

Losses 25,000
Total ordinary deductions from community property 176,600
The unpaid mortgage is an obligation of the community property because

it is considered as an ante-nuptial debt which have redounded to the
benefit of the family.
The vanishing deduction is a deduction from the community property

because the land is classified as a community property.
121. Alladin. Filipino, married, died January 1, 2011, leaving the following
properties:
Inherited from his brother who died may 3, 2009:

Riceland 1,000,000
Residential Land 2,000,000
Inherited from his mother who died april 12, 2007 or five days after his
marriage:
Coconut Land 420,000
Acqired thru Alladin’s wife’s labor:
Car 500,000
Commercial Land 1,000,000
Gold necklace (acquired by Alladin during a previous marriage which had
a legitimate descendant) 80,000
The Riceland and the residential land were previously mortgaged for
P350,000 when inherited where P200,000 was paid by Alladin during his
lifetime.
The coconut land was mortgaged for P94,000 of which P14,000 was paid
before his death. Also Alladin, by will, bequeathed to Marikina City the sum
of P200,000 for exclusively public purpose.
The estate incurred the following expenses:

Funeral expenses
Judicial expenses
Portion of family home destroyed by fire on Jan 5, 2011
Medical expenses
The gross estate of Alladin is-

a. P 3,500,000 c. P 5,250,000
b. 7,000,000 d. 3,957,020
 B
Car 500,000
Commercial Land 1,000,000
Riceland 1,000,000
Necklace 80,000
Coconut Land 420,000
Gross Estate 3,500,000 3,500,000 7,000,000
Alladin was under absolute community property of regime because his

marriage took place on April 7, 2007, or five (5) days before the death
of his mother.
Marriages celebrated on or after August 3, 1988 (effectively of the New

Family Code) are governed by the absolute community of property regime
unless there was an ate-nuptial agreement between the duo that they
shall be governed by a different regime of property relationship.
122. In number 119, the vanishing deduction is-

a. P 2,032,000 c. P 2,145,000
b. 220,980 d. None
 C
Vanishing deduction on Riceland and residential land:
Riceland 1,000,000
Value to take 3,000,000
Initial basis 2,800,000
Less: Deductions(pro-rated)
Funeral 140,000
Judicial 80,000
Losses 100,000
Unpaid Mortgage(94,000-14,000) 80,000
Unpaid Mortgage(350,000-200,000) 150,000
Donation to Marikina City 200,000
Total 750,000
(2,800,000/7,000,000 x 750,000) 300,000
Base 2,500,000
Rate (more tan 1 year; not more than 2 years) 80% 2,000,000
Vanishing deduction on coconut land:

Less: Deductions (406,000/7,000,000x750,000) 43,500
Base 362,500
Rate (more than 3 years; not more than 4 years) 40% 145,000
Total vanishing deductions 2,145,000
123. In number 119, the net taxable estate is-

a. P 2,217,500 c. P 515,000
b. None d. 535,000
 C
Deductions
Ordinary
Judicial expense 80,000
Losses 100,000
Unpaid Mortgage,coconut land 80,000
Unpaid Mortgage,rice/residential land 150,000
Donation to Marikina City 200,000
Vanishing deductions (No. 86) ________ 2,145,000
Total 400,000 2,495,000 (2,895,000)
Special
Family Home (2,000,000x½) (1,000,000)
Standard Deduction (1,000,000)
Medical Expense ( 40,000)
Less: Share of surviving spouse (3,500,000-400,000)x½ 1,550,000
Net taxable estate 515,000
The unpaid mortgage on the coconut land is a deduction from
exclusive property because it is presumed that the amount on the
mortgage had benefited the community property of the spouses.
The unpaid mortgages on the riceland and the residential land are
a deduction from the exclusive properties because they were contracted
by the brother and not by Alladin.
124. Luis Raymoond died leaving the following:

Exclusive properties 2,000,000
Conjugal properties 2,500,000
Notes payables (only ½ is notarized) 100,000
Claims against insolvent persons (50% is collectible) 120,000
Proceeds of life insurance (beneficiary is wife-revocable) 200,000
Death benefits under RA 4917 180,000
Medical expenses (1/2 is not supported by receipts) 550,000
The net taxable estate is-

a. 1,892,000 c. 1,520,000
b. 2,540,000 d. 1,862,000
 A
Exclusive properties 2,000,000

Conjugal properties 2,500,000
Claims against an insolvent 120,000
Proceeds of insurance 800,000
Death benefits under RA 4917 180,000
Gross estate 3,000,000 2,000,000 5,000,000
Less: Deductions
Ordinary
Claims against the estate (1/2) 50,000
Bad debts 60,000 (350,000)
Special
RA 4917 (180,000)
Medical expenses (550,000/2) (275,000)
Less: Share of surviving spouse (300,000-305,000)x½ 1,347,500
125. The following data relates to the estate of Abandonado:
House and lot (family home) in Quezon City,

zonal value (assessed value, P1,150,000) 2,230,000
Personal properties 2,500,000
Benefits received from employer as a consequence
Of his death 150,000
Unpaid mortgage on a Riceland with a value of
P1,000,000 200,000
Claims against Dimalupig, insolvent 35,000
Based on the above information, the value of the gross estate of

Abandonado is-
a. P 5,915,000 c. P 4,685,000
b. 4,835,000 d. 5,730,000
 A
Personal properties 2,500,000
Riceland 1,000,000
RA 4917 150,000
Claims against insolvent person 35,000
Number 126 through 128 are based on the following information:
On October 15, 2011, Benjamin, a Filipino citizen and a resident of

Manila, died intestate leaving his wife “Diana” and his two illegitimate
children, Aubrey and Barbara. The estate of the deceased consisted of the
following:
Real property-conjugal
House and lot (family home)- Manila. This property has an assessed value
of P2,500,000 at the time of death but valued in the zonal valuation of the
BIR for P2,900,000.
Personal property- conjugal
The total value was placed at P1,600,000.
Included in the P1,600,000 are proceeds of an irrevocable life insurance
policy of P100,000 from Phil-Am Life Insurance Company taken by Benjamin with
Barbara as the beneficiary. The premiums were paid out of conjugal property of
the spouses.
The following deductions were claimed by the heirs:
a. Funeral expense 100,000
b. Unpaid loans, notarized 75,000
c. Losses incurred during the settlement of the estate 25,000
126. The total gross estate of Benjamin is-

a. P 4,500,000 c. P 4,000,000
b. 4,100,000 d. 4,400,000
 D
See the solution in Number 128
127. The deductible amount of the family home is-

a. 2,900,000 c. 1,000,000
b. 1,450,000 d. None
 C
128. The net taxable estate is-

a. 100,000 c. 950,000
b. 150,000 d. None
 A
Personal property (1,600,000-100,000) 1,500,000
Gross estate/gross conjugal 4,400,000
Less: Deductions
Ordinary
Claims against the estate 75,000
Losses 25,000 ( 200,000)
Special
Family Home(2,900,000x½) (1,000,000)
Standard Deduction (1,000,000)
Less: Share of surviving spouse
Gross Conjugal 4,400,000
Less: Conjugal deductions 200,000
Net conjugal 4,200,000
Share (4,200,000x½) 2,100,000
129. Which of the following deductions cannot be claimed by a non

resident alien?
I. Vanishing deduction on a property situated in the Philippines
II. Funeral expenses incurred abroad
III. Family home situated abroad
IV. Donation of a property for use by a foreign government
a. I only c. III and IV

b. I and II d. A and IV
 C
Number 130 trough 132 are based on the following information:
Wilson died of a car accident. He died intestate on October 10,2011,

survived by his wife, Ging and a son.
Exclusive properties of Ging:

Car 400,000
Lot in Quezon City 2,000,000
Other real and personal properties 800,000
Exclusive properties of Wilson:

House and lot in Sta. Rosa, Laguna, family home 1,900,000
Other personal properties 800,000
Conjugal properties of the spouses:

Cash on hand and in bank 500,000
Receivable as prize in a raffles sponsored by PICPA 50,000
Receivable from an insurance company where the son, Gino
was designated as a revocable beneficiary. The premiums
were paid out of the conjugal funds. 150,000
The following deductions were claimed:

Claims against the estate, not notarized 50,000
Claims against insolvent persons 30,000
Unpaid mortgage on other real properties
(contracted for the benefit of the conjugal property) 200,000
Unpaid mortgage on house and lot in Laguna (the proceeds
of which did not redound to the benefit of the family) 350,000
Accrued income taxes 35,000
Income tax on income earned from October 11 to
December 31, 2011 7,500
130. The gross estate is-
a. 4,930,000 c. 4,850,000
b. 4,900,000 d. 8,130,000
 A
Cash 500,000
Receivable from PICPA 50,000
Receivable from insurance company 150,000
Gross estate 730,000 4,200,000 4,930,000
131. The deductible share of surviving spouse is-

a. P 255,000 c. P 112,500
b. 127,500 d. 2,227,500
 B
132. The net estate subject to tax is-

a. 1,962,500 c. 1,850,000
b. 1,977,500 d. None
 B
Less: Deductions
Ordinary-
Funeral 195,000
Judicial 15,000
Bad debts 30,000
Unpaid mortgage-real properties 200,000
Accrued taxes 35,000
Unpaid mortgage, Laguna 350,000
Totals 475,000 350,000 ( 825,000)
Special-
Family home, limit (1,000,000)
Standard deductions (1,000,000)
Less: Share of surviving spouse(730,000-475,000)x½ 127,000
Net estate subject to tax 1,977,500
Since the mortgage on real properties was contracted for the benefit of
the family, the same is considered as a deduction from conjugal
partnership of the spouses (Art. 121, par 2&3, Family code).
133. Alanis, a resident citizen, single but head of family, died January 3,
2011. The following are his data:
Properties:
Real properties(excluding family home of P1,000,000) 3,200,000
House and lot in Sydney Australia 1,500,000
Deductions:
Claims against the estate, not notarized 50,000
Unpaid mortgage in the family home 30,000
The personal properties do not include shares of stocks valued at

P50,000 which were purchased by the decedent from Astra Company one month
prior to his death.
The house in Sydney was inherited by Alanis from his father who died
2 ¼ years ago. Said property was mortgaged for P200,000 which was paid by
the decedent before his death.
The gross estate is-

a. P 4,050,000 c. P 6,650,000
b. 6,750,000 d. 5,550,000
 B
House and Lot Australia 1,500,000
Shares of Stocks 50,000
134. The total deductions (excluding standard deduction) is-

a. P 250,000 c. P1,250,000
b. 300,000 d. 2,001,111
 C
Bad debts 100,000
Unpaid mortgage on family home 30,000
Family home (maximum) 1,000,000
Deductible 1,250,000
The house in Australia is not subject to vanishing deduction because the

property is situated outside the Philippines. To be subject to this
deduction, the property must form part of the gross estate situated in the
Philippines.
135. Trilio, a resident of Quezon City, died on June 5, 2011 with the
following data:
Property acquired by Trilio before marriage

Prperty acquired by his wife before marriage
Conjugal family house and lot, Quezon City,
Certified by Barangay chairman
House in Marbel City (exclusive of Trilio) certified as a family home by
barangay captain
Proceeds of life insurance, irrevocable, beneficiary is the esate
Claims against insolvent debtors (40% uncollectible)
Inter vivos donations to Government of Quezon
Actual funeral expenses (50% paid by relatives)
Judicial expenses
The net estate is-

a. P 6,040,000 c. P 1,550,000
b. 1,580,000 d. 1,370,000
 B
Property acquired before marriage 1,500,000
Family home, Manila 1,600,000
House in Marbel City 1,000,000
Proceeds in insurance 500,000
Claims against insolvent 100,000 _________
Gross estate 2,200,000 2,500,000 4,700,000
Less: Deductions
Ordinary
Funeral expenses (50%) 150,000
Bad debt (100,000x40%) 40,000
Judicial expenses 250,000 ( 440,000)
Special
Family home ( 800,000)
Less; Share of surviving spouse
Gross conjugal 2,200,000
Less: Conjugal expenses 440,000
Net conjugal 1,760,000
Share (1,760,000x½) 880,000
The house in Quezon City is the true family home because it is the place
where the family resides.
The amount of funeral expenses shouldered by the relatives of the deceased

is not deductible because this does not diminish the estate.
Items 136 through 139 are based on the following information:
Penduko married in 2008 under absolute community of property regime died

on August 30, 2010. He left the following properties and obligations:
Properties:
Cash in bank P 200,000
Residential lot inherited from his father on June 12, 2007 1,200,000
Family home:
House (community property) 1,300,000
Lot (exclusive property of Penduko) 1,000,000
Personal properties acquired by the spouses during marriage 200,000
Receivable from his sister (insolvent) 100,000
Inter vivos donation from his mother on July 2010, revocable 150,000
Receivable from SSS as indemnity for hospitalization 12,000
Obligations:
Unpaid mortgage on the resident lot contracted by the father:
At the time of death of father 300,000
At the time of death of Penduko 100,000
Funeral expenses (40% were shouldered by relatives) 80,000
Judicial expenses (30% were incurred after 6 months) 35,000
Claims against the estate (includes unpaid medical
expenses of P12,000) 35,000
Unpaid mortgage on the house (loaned to Penduko’s sister) 100,000
Casualty loss (50% was indemnified by the insurance company) 60,000
Donation to Barangay Engkantao (verbal donation) 25,000
136. The gross estate on the estate of Penduko is-

a. P 4,062,000 c. P 3,962,000
b. 3,900,000 d. 4,000,000
 D
Cash 200,000
Residential lot 1,200,000
Family House 1,300,000
Family Lot 1,000,000
Personal Properties 200,000
Receivable from sister 100,000 _________
Gross estate 3,000,000 1,000,000 4,000,000
The property subject of the revocable donation made by the mother

although physically transferred to Penduko does not transfer title to
him because it is actually an inter vivos donation subject to estate tax
on the mother.
Benefits received from SSS and GSIS are exempt from estate tax.
The claim against Penduko’s sister is included already in the gross

estate as a “Receivable from his sister.”
137. The vanishing deduction on the estate of Penduko is-

a. P 357,450 c. P 300,500
b. 375,540 d. 367,450
 A
Value of property 1,200,000
Less: Mortgage paid (300,000-100,000) 200,000
Initial Basis 1,000,000
Unpaid mortgage on lot 100,000
Funeral expenses (80,000x60%) 48,000
Judicial expenses (35,000x70%) 24,500
Payable of the estate (35,000-12,000) 23,000
Unpaid mortgage on house 100,000
Bad debts (loan to sister) 100,000
Casualty loss (60,000x50%) 30,000
Total 424,500
(1,000,000/4,000,000x424,500) 106,375
Base 893,625
Rate (more than 3 years not more than 4 years) 40%
138. The total ordinary deductions from the community property of Penduko is-
a. P 807,950 c. P 782,950
b. 582,900 d. 682,950
 C
Ordinary Deductions:
Payable of the estate 23,000
Unpaid mortgage on the house 100,000
Unpaid mortgage on residential lot 100,000
Bad debts 100,000
Casualty Loss 30,000
Total 782,950
The vanishing deduction is a deduction from the community property of the

spouses because the property subject of the vanishing deduction is a
community property – it having been inherited before the marriage of
Penduko.
Donations for public purpose must be testamentary in character. Oral

donations are not valid.
The unpaid mortgage on the lot is an obligation of the community property

because it is considered as an ante-nuptial debt which has redounded to
the benefit of the family.
139. The net estate is-

a. None c. P 96,525
b. P 46,525 d. 122,025
 C
Ordinary deductions ( 482,950)
Special deductions:
Medical expenses ( 12,000)
Family home (1,500,000/2)+800,000(limit) (1,000,000)
Less: Share of surviving spouse (3,000,000-782,950)/2 1,108,525
140. Eleanor, resident citizen, married and under the absolute community of
property regime, died August 20, 2010. The following are the data on
properties and obligations:
Exclusive properties of Eleanor

Personal properties
Family home
Community properties:
Real properties
Personal properties
Funeral expenses
Judicial expenses incurred until February 20, 2011
Judicial expenses incurred after February 20, 2011
Unpaid taxes
Medical expenses
Casualty loss occurred November 2, 2010
Casualty loss occurred March 5, 2011
How much is the net taxable estate?

a. P 3,268,500 c. P 3,238,000
b. 3,278,750 d. 3,228,000
 B
Personal properties 1,750,000 2,500,000
Real properties 1,400,000 _________
Gross estate 3,150,000 4,500,000 7,650,000
Ordinary deductions:
Funeral expenses, limit 200,000
Unpaid taxes 12,500
Losses 350,000 ( 592,500)
Special Deductions
Family home (1,000,000)
Medical expenses, limit ( 500,000)
Less: Share of surviving spouse (3,150,000-592,500)/2 1,278,750
141. The net distributable estate is-

a. P 3,278,750 c. P 5,483,750
b. 3,483,750 d. 5,418,750
 D
Personal properties 1,750,000 2,500,000
Real properties 1,400,000 __________
Gross estate 3,150,000 4,500,000 7,650,000
Ordinary deductions:
Unpaid taxes 12,500
Losses (350,000+130,000) 480,000 (1,312,500)
Less: Share of surviving spouse (3,150,000-1,312,500)/2 918,750
Net distributable estate 5,418,750
C. TAXES CREDIT & ADMINISTRATIVE PROVISIONS

142. One is not titled to tax credit for taxes paid to foreign country
a. Resident citizen c. Resident alien
b. Nonresident citizen d. Nonresident alien
 D
143. All of the following, except one, are entitled to tax credit on estate
tax paid in foreign country:
a. Nonresident, not citizen c. Resident alien
b. Nonresident citizen d. Resident citizen
 A
144. One of the following is not a remedy against double taxation

a. Estate tax credit
b. Vanishing deduction
c. Delivery of property from fiduciary heir to fideicommissary in a
fideicommissary substitution
d. Transfer for public purpose
 D
145. Bongo, single, died in the Philippines leaving a net estate in the
Philippines of P1,200,000 and P1,800,000 in the United States. His estate
in the United States paid on estate tax of P25,000 in that country. The
Philippine estate tax due after tax credit for the estate tax paid to
United States is-
a. P 220,000 c. P 98,000
b. 147,000 d. 110,000
 A
Net Estate, Philippines 1,200,000
Net Estate, United States 1,800,000
Total 3,000,000
Tax on P 2,000,000
1,000,000 x 11% 135,000
Estate tax 110,000
Less: Tax credit
Tax paid in U.S. P 25,000
Limit (18/30 x P 245,000) 147,000
Credit allowed (lower) 25,000
Estate tax due after tax credit 220,000
Items 146 and 147 are based on the following information:
Lana, single, an American residing in the Philippines, died leaving the

following properties:
Location of property Net estate Foreign estate tax paid

Philippines P 1,500,000 P –
“A” foreign country 2,000,000 210,000
“B” foreign country 2,500,000 30,000
146. The allowable tax credit is-

a. P 240,000 c. P 261,250
b. 235,000 d. 266,250
 B
147. The estate tax due after tax credit is-

a. P 235,360 c. P 375,000
b. 380,000 d. 153,750
 B
Net estate, Philippines 1,500,000
Net estate, “A” foreign country 2,000,000
Net estate, “B” foreign country 2,500,000 4,500,000
Total 6,000,000
Tax on P 5,000,000 P 465,000

1,000,000 x 15% 150,000
Estate tax 615,000
Less: Tax credit
Tax paid “A” P 210,000
(2/6 x P 615,000) 205,000
Allowed (lower) P 205,000
Tax paid “B” 30,000
(2/6 x P 615,000) 256,250
Allowed (lower) 30,000
Total credits, 1st limitation 235,000
2nd limit, (4.5/6 x 615,000) 416,250
Allowed (lower) 235,000
Estate tax due after tax credit 380,000
148. Decedent Nida, resident citizen under absolute community of property
regime. Her data are as follows:
Philippines_ “A” Foreign Country

Gross estate P 4,000,000 P 6,000,000
Deductions 3,000,000 2,000,000
Tax paid 124,500
Sixty percent (60%) of the net estate pertain to community property.
The estate tax due after tax credit is-

a. P 175,000 c. P 340,000
b. 60,000 d. None
 A
Gross estate, Philippines 4,000,000
Deductions 3,000,000 1,000,000
“A” foreign country 6,000,000
Deductions 2,000,000 4,000,000
Less: Share of surviving spouse (5,000,000x60%)/2 1,500,000
Tax on P 2,000,000 135,000

1,500,000 x 11% 165,000
Estate tax due 300,000
Less: Tax Credit
Tax paid, foreign country 124,500
(4,000,000/5,000,000x300,000) 240,000 124,500
Estate tax payable 175,500
149. A non resident alien decedent had the following data:
Philippines Foreign country

Gross estate 3,000,000 1,000,000
Funeral expenses 500,000 200,000
Estate tax paid 50,000
The amount of Philippine estate tax p0ayable is-

a. P 2,475,000 c. P 137,250
b. 187,250 d. 278,000
 B
Gross estate, Philippines 3,000,000
Less: Deductions
Funeral expenses, Philippines 500,000
Funeral expenses, foreign 200,000
Total 700,000
(3/4 x 700,000) 525,000

Tax on P2,000,000 135,000

475,000x11% 52,250
Estate tax due 187,250
Gross estate Philippines 3,000,000
Gross estate, foreign country 1,000,000
Total gross estate 4,000,000
150. What period (from the time of death) is given to file the estate tax
return? How about the maximum period of extension for filing the return?
Filing Extension
a. 6 months 30 days
b. 2 months 60 days
c. 6 months 2 years
d. 6 months 5 years
 A
151. Which of the following is not correct?

a. A statement duly certified by a CPA is necessary if the estate tax
return shows a gross value exceeding P2,000,000
b. Extension of time for filing maybe granted by the Commissioner of
Internal Revenue but it must not exceed 3 months.
c. Shares not traded in the stock exchange shall be valued at its book
value on the valuation date.
d. An estate tax return is necessary in case the transfer is subject to
estate tax.
 B
152. Which of the following statement is correct?
Statement 1: In case the available cash of the estate is not sufficient

to pay its total tax liability, the estate may be allowed to pay the tax
by installment.
Statement 2: In case the estate tax has been paid by installment, the
computation shall always be on the cumulative amount of the net taxable
estate but the amounts paid after the statutory due date of the tax shall
be imposed a penalty.
a. Statement 1 only c. Statement 2 only

b. Statement 1 and 2. d. Neither 1 nor 2.
 B
153. The estate tax return is not necessary in the following instance-
a. The transfer of motor vehicle valued at P40,000
b. The transfer is exempt from tax, the gross value of estate is P300,000
c. The net estate is worth P250,000
d. Donation of cash worth P5,000
 D
154. First Statement: The estate tax return should be filed with the
authorized agent bank, revenue District Officer, Collection agent or duly
authorized treasurer of the municipality in which the decedent was
domiciled at the time of his death.
Second Statement: If the decedent was a non resident, not a citizen of

the Philippines, the estate tax return may be filed with the Commissioner
of Internal Revenue.
a. Both Statements are true.

b. Both statements are false.
c. First Statement is true while the second statement is false.
d. First Statement is false while the second statement is true.
 A
155. Case 1 - Car filed an estate tax return on the date prescribed by law
but paid the tax due of P40,000 after said date. Carl is subject to the
penalty of P10,000.
Case 2 - If Carl filed the return and paid the tax of P40,000 with an
internal revenue district officer other than those with whom the return is
required to be filed after the prescribed date, Carl is subject to the total
penalty of P30,000. (RPCPA)
a. Penalty in Case 1 is correct, penalty in case 2 is wrong.

b. Penalty in Case 1 is wrong, penalty in case 2 is correct.
c. Penalties imposed on both cases are correct.
d. Penalties imposed on both cases are wrong.
 A
A penalty of 25% of the basic tax shall be imposed on the following:
a. Late filing of return and late payment of tax; and
b. Filling the return with an unauthorized person
Thus, Carl shall be subject to the following penalties:
Case 1 – Late filling (P40,000 x 25%) P 10,000
Case 2 – Late filling (P40,000 x 25%) 10,000

Filling with an unauthorized person (40,000 x 25%) 10,000
Total penalties 20,000
156. On September 21, 2011, the manager of PNB upon reading the obituary
announcing the death of Mr. A, refused to allow the heirs of the decedent to
withdraw A’s deposit. A week later, immediately after said denial, the heirs
sued PND and its manager to compel them to release the money alleging the such
act is arbitrary and a denial of their property constitutional rights. Which
of the following statements is not correct? (RPCPA)
a. The bank should allow the withdrawal from A’s deposit account only upon
the presentation that the estate tax had been paid.
b. The case brought by the heirs against the bank will not prosper in court
since courts have no jurisdiction over the case. The proper remedy would
be an administrative appeal with the BIR Commissioner.
c. Even if the estate tax have not been paid yet, the BIR Commissioner may
authorize the bank to allow withdrawal of an amount not exceeding
P100,000 by heirs of A.
d. The manager of PNB is right in refusing to allow the heirs to withdraw
the decedent’s deposit because he has prior knowledge of the death of A.
 C
If a bank has knowledge of the death of the depositor, it shall not allow
any withdrawal fro the deposit account; unless the Commissioner has
certified that estate taxes imposed thereon have been paid.
However, it may allow the withdrawal of an amount not exceeding P20,000

without the need of said certification.
157. The Commissioner of Internal Revenue may extend the time for the payment
of estate tax in case the estate is settled.
Judicially Extrajudiciary Judicially Extrajudiciary
a. 2 years 5 years c. 5 years 2 years

b. 3 years 1 year d. 4 years 2 years
 C
158. Masaru died on February 24, 20111. The executor of the estate filed an
estate tax return on June 23, 2011. Within the period for payment, the
executor requested for an extension of time for paying the tax. Assuming that
the tax payable in the return is P20,000 and the Commissioner granted the
request but required that the tax should be paid on or before August 24, 2013,
the estate tax payable on August 24, 2013 is-
a. P 20,000 c. P 32,000
b. 28,000 d. 29,000
 B
Estate tax due per return P 20,000
Add: Interest (20,000 x 20% x 2) 8,000
Estate tax due and payable as of August 24, 2013 28,000
159. Which of the following is not true?
a. The estate tax should be paid before the delivery of the distributive
share in the inheritance to any heir or beneficiary.
b. When there are two executors, both of them are severally liable for the
payment of the estate tax.
c. The heir or the beneficiary has the primary obligation to pay the estate
tax.
d. The liability of the heir in the payment of the tax shall in no case
exceed the value of his share in the inheritance.
 C
The executor or administrator of an estate has the primary obligation to
pay the estate tax but the heir or beneficiary has subsidiary liability
for the payment of that portion of the estate which his distributive share
bears to the value of the total net estate.
160. A notice of death and a CPOA certificate, respectively, are required if
the value of the estate exceeds-
Notice Certificate Notice Certificate

a. P 20,000 P 2,000,000 c. P 200,000 P 2,000,000
b. 20,000 200,000 d. 2,000,000 20,000
 A
161. If required, notice of death of the decedent should be given to the BIR
within
a. 2 months c. 2 years
b. 6 months d. 5 years
 A
162. Mr. A, a resident citizen, died on August 2, 2011. When is the deadline
for filing notice of death as required by the tax codes?
a. April 15, 2012 c. November 2, 2011

b. October 2, 2011 d. February 2, 2012
 B
163. Which of the following statements is not required to accompany the estate
tax return?
a. Itemized assets with corresponding value

b. Itemized deductions from gross estate
c. Estate tax due and payable
d. Itemized income and expenses of the decedent
 D

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Accountant’s fees and audit fees 5,000

Medical expenses-2 months before decedents death 50,000

Unpaid mortgage on the property located abroad 40,000

Claims against the estate 25,000

Real Property located in Osaka, Japan P2,000,000

Lot situated in Davao City 1,000,000

Shares of Stocks in Japanese Corporation 600,000

Other tangible personal properties-Phils 1,000,000

86. The gross estate on the estate of Mhar Dehrer is-

Total ELIT (P5,000,000/2,000,000 x P60,000) P 150,000

Property 1- Car purchased 3 years ago from Mitsubishi Motors, Batangas

Property 3- Donation from a friend in 2006.

Property 4- Community property inherited December 2, 2006 or five (5)

Property 1 Property 2 Property 3 Property 4

To be entitled to a vanishing deduction, the tax on the prior transfer

89. Which of the following is a multiplier deduction for purposes of computing

a. benefits received under RA 4917

d. Transfer for public purpose

Statement 2: A property is subject to vanishing deduction if it has been

a. Statement 1 is true; Statement 2 is false.

91. Christopher died on October 5, 2011 leaving a parcel of land valued at

Which statement is correct?

a. The spouses shall be governed by the conjugal partnership of gains.

The death of Christita will not subject the property to a vanishing

92. Which of the following statements about “vanishing deduction” is true?

a. For a vanishing deduction to be deductible, the property must have

A family home is situated outside the Philippines is nit deductible

In vanishing deduction, the first transfers of the property maybe inter

a. Vanishing deduction c. Family home

b. Medical expenses d. Standard deduction

Vanishing deductions are deductible if the usual requisites are complied

a. 80% of the value taken as basis for vanishing deduction.

Year Month Day

Mode of Date of Date Death of Val

Land Donation 7-3-07 P 500,000 P 350,000

Car Purchase 10-2-10 800,000 980,000

1. The gross estate of the decedent amounts to P3,000,000.

The vanishing deduction is (PPCPA)-

To be subject to vanishing deduction, the property must have been

Bequests to charitable institutions and medical expenses are not part of

a. Real Estate abroad is included in the gross estate of a decedent who is

Community properties 2,000,000

Exclusive properties of Pepe 3,000,000

Exclusive properties of Pepe’s wife 1,000,000

Deductions (except standard deduction) 700,000

Included in the P3,000,000 is a parcel of land worth pf P2,000,000 and a

The vanishing deduction on the estate of Pepe is-

If the same rate shall be applied to both properties, the vanishing

The vanishing deduction is-

99. In number 98 above, the net taxable estate is-

Community Exclusive Total

Gross estate 3,000,000 2,000,000 5,000,000

a. Only statement 1 is correct.

101. Which of the following statements is false relative to a “family home”?

If the family home is subject to vanishing deduction and an unpaid

102. Which of the following is true about “medical expenses?”

Non-resident aliens are not entitled to claim deduction of medical

103. Statement 1: An unmarried individual cannot constitute a family home.

Statement 2: Unpaid medical expenses at the time of death are deductible