TAXATION

Estate Tax
ATTY. MACMOD, C.P.A.
2020 Edition
TAX TABLE
The estate tax shall be computed on the basis of the value of the net estate in accordance with
following graduated rates (effective Jan. 1, 1998) *Effective Jan. 01, 2018, under TRAIN Law, the rate
shall be 6%.
If the net estate is:

Over But not over The tax shall be

- 200,000 0
P 200,000 500,000 5% of the excess over P 200,000
500,000 2,000,000 P 15,000 + 8% of the excess over 500,000
2,000,000 5,000,000 135,000 + 11% of the excess over 2,000,000
5,000,000 10,000,000 465,000 + 15% of the excess over 5,000,000
11,000,000 1,215,000 + 20% of the excess over 10,000,000
Basic Concepts:

1._______________ a mode of transferring and acquiring ownership, rights, interest and obligations from
a dead individual.
2._______________ refers to all property rights and obligations of a person which are not extinguished
by his death and also those which accrued thereto since the opening of succession; subject matter of
succession.
3._______________ a person whose property is transmitted thru the succession whether or not he left a
will.
4._______________ a person whose property is transmitted thru succession with a will.
5._______________ a person called to the succession either by a will or by provision of law.
6.______________ a person who inherits personal or movable property by a will.
7._______________ a document wherein in his handwriting an individual makes known his wishes
concerning the disposition of his estate after his death.
8._______________ the person to whom the property or property rights is transferred.
9._______________ a person appointed by a testator to carry out the provisions of the will.
10._______________ a person appointed by the court in the absence of an executor.
11._______________ one carried out according to the wishes of the testator to express in a will executed
in a form prescribed by the law (voluntary).
12._______________ one that takes place by operation of law (involuntary).
13._______________ succession affected party by will and partly by operation of law.
14._______________ tax imposed upon gratuitous transfer of properties.
15._______________ portion of the estate reserved to the compulsory heirs.
Formula for computation of TNE:

1. Decedent single
Gross estate P xx
Less: Allowable deductions xx
Taxable net estate Pxx
Estate tax due (0%-20%) P xx
2. Decedent married
Gross estate
Exclusive of the decedent P xx
Common property of the couple xx P xx
Allowable deductions
From exclusive property xx
From common property xx xx
Net estate before share of surviving spouse xx
Less: Share of surviving spouse xx
Net estate before special deductions xx
Less: Deduction for family home/medical exp./s.deductions xx
Taxable net estate P xx
Estate tax due (0%-20%) P xx
*Computation of the share of surviving spouse
Gross common property of the H & W P xx
Less: Deductions from common property xx
Net xx
Divided by 2
Share of the surviving spouse P xx
Estate tax due P xx
*Deduct estate tax credit for the tax paid abroad xx
Estate tax still due P xx
*Formula for estate tax credit:
Under Limitation (used it only 1 foreign country is involved: By country limitation.)

Actual E.T. paid to FC P xx

Or TNE,FC/TNE, W x E.T. due in the Phil. xx
Allowable tax credit (whichever is lower)
For the foreign country P xx
Limitation B: (by total, used if 2 or more foreign countries

Are involved together with limitation A)

Total actual E.T. paid to all FC’s P xx
Or TNE, all FC’s/TNE, W x E.T. due in Phil. xx
Allowable tax credit (whichever is lower) P xx

Note: If there are 2 or more FC’s both limitations (A &B) should be used, then get whichever is lower between
the two as the final allowable tax credit.
EXEMPTIONS AND EXCLUSIONS FROM THE GROSS ESTATE

A. Under Sections 85 & 86, NIRC

1. Capital or exclusive property of the surviving spouse.
2. Properties outside the Philippines of a Non-Resident Alien decedent
3. Intangible personal property in the Philippines of a Non-Resident alien under the Reciprocity Law.

B. Under Section 87, NIRC

1. The merger of usufruct in the owner of the naked title.
2. The transmission or delivery of the inheritance or legacy by the fiduciary heir or legatee to the
fideiconussary.
3. The transmission from the first heir or legatee in favor of another beneficiary in accordance with
the desire of the predecessor-similar to transfers passing S.P.A.
4. All bequests, devises, legacies, or transfers to social welfare, cultural, charitable institutions, no
part or the net income of which insures to the benefit of any individual provided that not more than
30% of the said bequests, devises, legacies, or transfers shall be used by each institution for
administrative purposes:
C. Under Special Laws
1. Benefits from GSIS by reason of Death
2. Benefits from SSS by reason of Death
3. Benefits from Philippines and US government for war damages
4. Benefits from US Veteran Administration
5. Retirement benefits of officials/employees of private firms
6. Life insurance proceeds on insurance policy upon his own life, where the beneficiary is a
third person, and the designation is irrevocable
7. Life insurance proceeds on insurance policy (group insurance) taken out by the employer on
the employees’ life regardless of who is the beneficiary and the designation.
REVIEW ON ADMINISTRATIVE PROVISIONS – ESTATE TAX

1. What is a notice of death?

It is a written notice from the executor, administrator, or any of the legal heirs, as the case
may be, informing the Commissioner of the Internal Revenue about the decedent’s death.
2. How should the return be filed? What information should be contained?
It shall be filed under oath and in duplicate. It should show the following:
a. The value of the gross estate at the time of the decedent’s death, or in case of non-
resident alien decedent, that part of his gross estate in the Philippines;
b. The allowable deductions under Section 86;
c. Such other information as may be necessary to establish the correct tax due.
3. What is the additional requirement if the gross estate exceeds P5,000.000?
The estate tax return shall be accompanied by a statement showing:
a. Itemized assets of the decedent with their corresponding gross value at the time of his
death, or in case of non-resident alien decedent, that part of his gross estate in the
Philippines;
b. Itemized deductions from the gross estate allowed under Section 86;
c. The amount of tax due whether paid or still due and outstanding duly certified by a
CPA.

4. What is the time for filing of the estate tax return? It is extendable?
It shall be filed within one (1) year after the decedent’s death. In meritorious cases, the BIR
Commissioner may give a reasonable extension of the time, not exceeding 30 days.
5. Where and to whom it should be filed?
The return shall be filed with the RDO, collection agent or duly authorized treasurer of the
municipality (or city) in which the decedent was domiciled at the time of his death, or if there be no
legal resident in the Philippines, the with the Office of the BIR Commissioner.
6. When should the estate tax be paid?
At the time the return is filed by the executor, administrator or the heirs. (Pay as you file system)
7. May the time for payment be extended?
Yes, in meritorious cases, if payment of such tax should cause undue hardship upon the estate or
any of his heirs, the BIR Commissioner may extend the time as follows:
a. If the estate is settled through the courts (juridically) – 5years.
b. If the estate is settled through extra-juridically – 2 years.
8. Who is liable to pay the estate tax?
It shall be paid by the executor or administrator before delivery to any beneficiary of his
distributive share of the estate. Such beneficiary shall be subsidiary liable for the
payment of such portion estate tax as his distributive share bears to the value of the total net
estate.
9. What if there is no executor or administrator appointed or qualified?
Any person in actual or constructive possession of any property of the decedent.
10. Is the tax a personal liability of the administrator or executor?
Yes, under Section 85 of NIRC
11. May he be discharged from such personal liability? How?
Yes, by making a written application to the BIR Commissioner for the determination of the
estate tax and his discharge from personal liability. He shall thereafter be notified by the BIR
Commissioner and upon payment of the amount of which he is notified, he shall be
discharged from such personal liability and shall be entitled to a receipt or writing showing
such discharge.
12. May a judge allow the execution or administrator to deliver a distributive share to an heir at
anytime?
No, unless the executor or administrator can show a certification from the BIR that the estate
tax has been paid.
EXERCISES/PROBLEMS

A. State the amount of allowable deductions from the gross estate in each of the
following:
1._______________ Gross estate of P8,000,000 and funeral expenses of P250, 000.
2._______________ Unpaid taxes of the decedent P3M, 25% of w/c accrued after death
already.
3._______________ Receivable of P75,000 from an insolvent debtor whose ratio of assets
to liabilities is 1:3
4._______________ Hospitalization expenses until death: P3,000,000, 50% incurred 1 yr.
Prior to death but only ½ of which is supported by receipts.
5._______________ Expenses for the probate of a will including P10,000 facilitation fee for
a court personnel, P100,000: amount paid to broker to convert
some property in the estate to cash as authorized by the court P50,000.
6.______________ P75,000 indebtedness with interest at 20% p.a. contracted
3months before death, not notarized and a deed of mortgage P20,000, contracted 6
months before death at 24% p.a.
7.______________ P100,000 note payable notarized earning 18% p.a. dated
September 30, 2014. Decedent died March 15, 2015.
8. ______________ A conjugal family house with FMV of P900,000 and exclusive
family lot worth P500,00 owned by the decedent.
9.______________ Loss by fire of building worth P1M 5 months after decedent’s
death, 75% compensated by insurance. Estate was settled in the 6th month.
10._____________ Transfer for public purposes made inter vivos, P1M.
11._____________ A land worth P1M when inherited 4 ½ years ago by the decedent from his
father with mortgage of P200,000, 60% of which was paid by the decedent
before he died . FMV of land upon deathP1,500,000. Gross estate is P8M and deductions
reached P750,000 40% of which represents ELIT & TPP. Compute for VD only.
12._____________ Loss of car by theft, occurring 8 months after the decedent death, value of
car P300,000, 60% to be paid by insurance.
13._____________ Transfer for public purposes donated by the decedent to Manila City Hall
(shown in the will) P200,000.
14._____________ Unpaid mortgage of P200,000 on a P1,1000,000 house shown in the gross
estate net of the P200,000 mortgage.
B. Determine whether the following properties are conjugal/community or exclusive

ACP CPG
1. Property acquired before marriage

1. Property acquired during marriage

a. By onerous Title
a. By gratuitous Title
1. Income from 2-a earned during marriage

1. Income from 2-b earned during marriage

1. Other income of the couple earned during

marriage
1. Property acquired during marriage thru
exchange:
a. Using exclusive prop.
a. Using common property
1. Jewelry acquired during marriage

a. Using exclusive funds

a. Using common funds
1. Property for personal & exclusive use of
either husband or wife
C. Multiple Choice
1. It refers to a mode of transferring & acquiring properties left by the decedent.
a. Estate transfer c. Donation
b. Succession d. Execution of a will

2.The property, rights & obligations of a person which are not extinguished by his death &
those which have accrued thereto since the opening of succession.
a. Inheritance c. Estate
b. Capital d. Devisee

3. The estate tax accrues from the moment of:

a. The fixing of notice of death
b. Expiration of a months after death
c. The death of the decedent
d. The filing of estate tax return
4. The gift tax paid on a donation mortis causa, if any:
a.Exempts the property from estate tax.
b.Has no effect since the gift will be subject to another gift tax.
c. Shall form as a tax credit to be deducted from the estate tax due.
d.Is invalid & the tax will not be credited at all.

5. Which shall not form part of the gross estate of a decedent:

a.Intangible personal property of non-resident alien decedent without reciprocity law
b.Revocable transfer
c. Transfer passing special power of appointment
d.Life insurance where the executor is the beneficiary & it is irrevocable
6. All of the following are considered intangible in the Philippines, except:
a.Franchise which must be exercised in the Phil.
b.Shares obligations or bonds which issued by any corporation or sociedad
anonym organized or constituted in the Philippines in accordance with it
laws.
c. Shares, obligations or bonds by any foreign corporation 75%.of the
business of which is located in the Philippines.
d.Shares, obligations of bonds issued by any foreign corporation of such
shares, obligations or bonds have acquired a business situs in the
Philippines.
e.Shares or rights in any partnership, business or industry established in the
Philippines.
 7. A person who inherits personal property thru a will:
a.Devisee c. Heir
b. Legatee d. Successor

8. A person who inherits real property thru a will:

a.Devisee c. Heir
b. Legatee d. Successor

9. Succession wherein the decedent did not leave any will:

a. Voluntary succession c. Mixed succession
b. Legal succession d. Testamentary succession
10.Which statement is false about succession:
a. The successor inherits all the transmissible property of a decedent including his
liabilities.
b. The successor can be made liable for the obligations of the decedent beyond
the value of the asset he received.
c. In succession, fruits and credits maturing after the death of the decedent pass
to the heirs even if they were not subjected to estate tax.
d. In succession, the successor can refuse the inheritance.

10.One of statement is false:

a. Estate tax is an excise tax.
b. Estate tax is transfer tax on donation mortis causa.
c. The object of estate tax is to tax the transfer of the property from the dead to
the living.
d. Estate tax and inheritance tax are the same.
11. Which statement is wrong:
a. Claims against insolvent person should be included in the gross estate even if uncollectible.
b. Transfer passing under special power of appointment is excluded from the gross estate.
c. Revocable transfers are includible whether or not the right to revoke is exercised.
d. Transfer contemplation of death for adequate consideration is still includible in the gross estate.
13. Which statement is incorrect about funeral expenses allowed:
a. The amount allowed is 5% of the gross estate or the actual expenses which ever is lower.
b. The actual expenses must be paid from the estate or chargeable to it.
c. The allowed deduction can never be more than the actual expenses paid.
d. The expenses necessary for burial even if paid by friends are also allowed as deduction.
14. Which statement is incorrect about claims against insolvent persons?
a. They must be included in the gross estate even if uncollectible.
b. They must be duly notarized.
c. The deduction is only the uncollectible portion.
d. The insolvency of the debtor must be established.

15. One of the following is incorrect:

a. Taxes to be deductible must accrue before the decedent’s death.
b. Losses must occur also before the decedent’s death to be deductible.
c. Medical Expenses must be incurred within 1 year prior to the decedent’s death.
d. Transfer for public purposes order to be deducted must be mortis causa in
character.
16. Which statement is false about vanishing deduction:
a. It pertains to a property presently found in the gross estate.
b. The property must be previously subjected to a transfer tax or income tax.
c. The property was received by the decedent within 5 years prior to his death.
d. The property must be located in the Philippines.

17. A donation inter vivos but due to thought of death is;

a. Subject to donor’s tax
b. Subject to estate tax if for inadequate consideration
c. Subject to estate tax a bonafide transfer
d. Subject to inheritance tax
18. In filing the estate tax return , a CPA certificate is required when:
a. Gross estate exceeds P5,000,000
b. Gross estate reaches P5,000,000
c. Gross estate exceeds P1,000,000
d. Gross estate reaches P3,000,000

19. A died leaving a house and lot to B March 31, 2018 which was questioned by C and it
is under litigation but the parties have stated an extra-judicial settlement. The last day for
filing the estate tax return is
a. April 30, 2019 c. September 30, 2019
b.April 30, 2019 d. March 31, 2019

20. The last day for the payment of estate tax may be extended, until;
a. March 31, 2020 c. September 30, 2020
b. September 30, 2021 d. March 31, 2021
21. The taxpayer in estate tax is:
a. The decedent
b. The estate as a juridical entity
c. The heirs or succession
d. The administrator or executor

22. The payment of estate tax is a personal liability of

a. The heirs or successors
b. The administrator in testamentary succession
c. The executor in voluntary succession
d. The estate itself
23. 1st statement: The court may authorize the executor or administrator to distribute the estate if in its
sound discretion it believes that the heir badly needs his share.
2nd statement: The administrator or any of the heirs may however upon authorization of BIR withdraw
from the decedent’s bank up to P50,000 even without required certification that the estate tax has
been paid.
a. True, True c. True, False
b.False, False d. False, True

24. 1st statement: A died giving B power to appoint a person who will inherit A’s house and lot. B,
however can only choose among C, D and F. B decided to transfer the property to C, in B’s will when he
was old already. The transfer from B to C is subject to estate tax.
2nd statement: During A’s lifetime, he decided to give B as gift his (A) car subject to the condition that if
B does not become a CPA within 3 years. A shall revoke the transfer. In the second year however, A
died. The car should form part of A’s gross estate.
a. True, True c. True, False
b. False, False d. False, True
25. A died leaving a farm land, In his will, he transferred the ownership thereof to B but subject
to the condition that C will have the right to use the land for a period of ten years (Usufruct)
in the seventh year, however, C died and C’s will be surrendered his over the land to B.
a. The transfer is subject to donor’s tax
b. The transfer is subject to estate tax
c. The transfer is both an inclusion and exclusion from the gross estate
d. The above is a tax-exempt transfer.

26. One of the following is not an exemption or exclusion from the gross estate:
a. Capital or exclusive of the surviving spouse
b. Properties outside the Philippines of non-resident Chinese decedent
c. Shares of stocks of San Miguel Corporation of a non-resident Mexican.
d. The merger of usufruct in the owner of the naked title
 Questions 27 through 30 are based on the following information:

Shares of stock of ABC, foreign corporation

75% of the business in the Phil. P2,000,000
Other personal properties
500,000
Shares of stock of ABC, foreign corporation 100,000
75% of the business in the Phil. 50,000
Other personal properties 100,000
Shares of stock of ABC, foreign corporation 20,000
75% of the business in the Phil. 80,000
Other personal properties 75,000
Shares of stock of ABC, foreign corporation 125,000
75% of the business in the Phil.
Other personal properties 300,000
27. If the decedent is a non-resident citizen his gross estate is:
a. P3,650,00 c. P2,500,000
b. P3,600,000 d. P2,650,000

28. If the decedent is non-resident alien his gross estate is:

a. P1,195,000 c. P1,250,000
b. P945,000 d. P1,070,000

29. If in the preceding number, reciprocity law can be applied the gross estate is:
a. P1,050,000 c. P1,250,000
b. P945,000 d. P1,070,000

30. Based on the original problem but assuming the PLDT shares of stocks (PLDT) are not listed in
the Local Stock Exchange,& there are 1,000 shares at the time of death, the company’s
outstanding shares were 10,000 shares. Its retained earnings was P2,000,000, par value per share
was P50/share. The gross estate should show the said shares at:
a. Still at P75,000 c. P200,000
b. P250,000 d. P0
 Questions 31 & 32 are based on the following information:

Building, USA P5,000,000

House & lot in Bulacan (500 sq. meters) zonal value is P10,000 per
square meter
4,500,000
Life insurance proceeds, beneficiary is the wife, the administratix,
irrevocable 500,000
Life insurance proceeds with another company beneficiary, his
nephew, irrevocable 200,000
Claims against a debtor who died a year ago (50% collectible)
50,000
Death benefits from US Veteran Administration
100,000
Death benefits from SSS 40,000
Paraphernal property of his surviving wife 2,000,000
 He also transferred mortis causa the following:

FMW- Transfer FMV - Death

S Price
Car, Mla. P 500,000 P1,000,000 P 800,000
Land, Mla. 1,500,000 2,000,000 1,000.000
Land, USA 2,000,000 1,800,000 3,000,000
31. If the decedent is a Filipino citizen, his gross estate is:
a. P10,850,000 c. P10,950,000
b. P12,900,000 d. P11,050,000

32. If the decedent is a non-resident alien and his country does not impose
transfer tax on any intangible properties left by a Filipino decedent, his gross
estate is:
a. P5,350,000 c. P6,500,000
b. P5,300,000 d. P6,000,000
33. 1st statement: A note payable contracted 11 yrs. ago is a deduction from the gross estate if
notarized.
2nd Statement: To be deductible, medical expenses must be paid within one year period before
death.
a. True, True c. True, False
b. False, False d. False, True
34. 1st Statement: A decedent OFW cannot claim Family Home deduction.
2nd Statement: The liability of the heirs for estate tax is solidary.
a. True, True c. True, False
b. False, False d. False, True
 35.Purobuto, non-resident Japanese, died leaving the following:
Exclusive properties, Philippines P 5,600,000
Conjugal properties, Philippines 4,200,000
Conjugal properties, Abroad 18,200,000
Deductions claimed:
Funeral expenses 1,000,000
Judicial expenses 1,000,000
Unpaid liabilities, notarized 1,500,000
Losses: occurring 3 mos. After death due to fire (included above)
1,200,000
Donation mortis causa to Makati City Hall
1,800,000
Family Home (included above), located abroad
1,000,000
Standard deduction 1,000,000
The taxable net estate is:
a. P4,927,500 c. P4,427,500
b. P5,427,500 d. P3,427,500

36. If decedent is a Filipino citizen, TNE is __________

37.Mr. Nabigla died on March 20, 2020 leaving a gross estate of P7,800,000
including a land inherited from his uncle on October 15, 2016 and a car
donated to him on April 20, 2014. The following data pertain to the two
properties:
Unpaid Mortgage FMV upon receipt FMV upon death
Land P100,000 P1,800,000 P1,250,000
Car 50,000 300,000 400,000

The decedent was able to pay ½ of the unpaid mortgage on the land
before his death. The deductions are:
Expenses, losses, indebtedness, taxes (excluding the unpaid P1,400,000
mortgages above but including actual funeral expenses of
P300,000 and medical expenses of P600,000)

Standard Deductions 2,000,000

Transfer to the Govt, included above 300,000
Death Benefits from Employer 200,000
Family home (included above) 1,000,000
 The allowable vanishing deduction is:
a.P213,000 c. P426,000
b.P626,000 d. P0

38.The taxable net estate based on the preceding number is:

a.P1,900,000 c. P900,000
b.P3,400,000 d. P474,000
39. Mr. Dinakahinga, head of family died on January 15, 2020, leaving the following properties and
obligations:
Cash in bank, 50%, donated mortis causa to Natl Govt;50-% to Q.C. gov’t
P 300,000
House and lot in Laguna, F. Home 1,000,000
Building, Manila 5,200,000
Farm lot 1,000,000
Claim against an insolvent debtor 1,000,000
(1/2 collectible)
Transfer in contemplation of death (gratuitous)
1,500,000
Transfer passing special power of appointment
75,000
Deduction claimed:
Funeral expenses 600,000
Judicial expenses 350,000
Donation mortis causa to Quezon City and National Government
300,000
Unpaid mortgage on the farm lot 75,000
Notes payable, notarized 200,000
 The farm lot was inherited 5 ½ years by the decedent before his death with a value then
of P575,000 and a mortgage indebtedness of P150,000.
The taxable net estate is:
a.P2,925,000 c. P3,625,000
b.P3,925,000 d. P2,725,000

40. Based on the preceding number, the taxable net estate assuming the farm was
inherited 5 yrs ago:
a. P2,835,750 c. P2,750,000
b. b.P2,446,500 d. P2,550,000
 41.Mr Kiliti, Filipino, married died leaving the following estate:
Car acquired before marriage by Mr. Kiliti
P 300,000
Car acquired before marriage by Mrs. Kiliti
450,000
House and lot acquired during marriage 1,500,000
Jewelries of Mrs. kiliti 100,000
Personal properties inherited by:
Mr. Kiliti during marriage 250,000
Benefits from SSS 50,000
Retirement benefits from a private firm 150,000
Proceeds of group insurance taken by his employer
75,000
Land inherited by the wife during marriage
1,000,000
Income earned from the land inherited by wife(25% of which was earned after death)

200,000
The gross estate under conjugal partnership of gain is:
a.P2,600,000 c. P1,950,000
b.P3,600,000 d. P2,200,000
43. Under the same problem, the gross estate under absolute community of
property is:
a.P2,600,000 c. P1,950,000
b.P3,600,000 d. P2,500,000
41.Mr. Malungkot died intestate on September 30, 2019. He is survived by his wife. An
inventory of the estate showed the following:
FMV tax
declaration Zonal Value
Exclusive estate of Mr. M
Commercial land 700 sq. m. P 850,000 P 900/sq. m.
Residential land 900 sq. m. 580,000 1,000/sq. m.
Conjugal estate:
Farm land, 800, sq. m. 1,300,000 700/sq. m.
Family Home 17,500,000
Car, Toyota 200,000
Other property 280,000
Death benefits (RA 4917) 200,000
On January 1, 2019, the commercial land was mortgaged at the Phil. National Bank
for P200,000 at 24% per annum. The residential house (certified family home is
mortgaged with unpaid balance of P330,000 as of the date of death). The 900 sq. m.
residential land is the family home’s lot. Actual funeral expenses amounted to
P250,000 but ½ of which is non-deductible. Medical expenses reached P600,000
but ¼ only was incurred with in 1 yr before death.
The gross estate is:
a.P4,280,000 c.P2,730,000 e. None
b.P4,480,000 d.P4,160,000
41.The total deductions excluding share of surviving spouse and special deduction is:
a.P655,000 c. P855,000 e. None
b.P891,000 d. P1,016,000

41.The deduction for family home is:

a.P1,000,000 c. P900,000 e. None
b. 950,000 d. P750,000

41.The taxable net estate is:

a.P401,500 c. P201,500 e. None
b.P326,500 d. P101,500
 47. Mr. Bombo, Filipino died on April 10, 2019 with the following data: (excluding standard
deduction)

Estate tax paid

Gross Estate Deduction
Philippines P 5,375,000 P 75,000 P -
Foreign country A 300,000 150,000 3,750
Foreign country B 450,000 525,000 -
Foreign country C 600,000 225,000 25,000

The estate tax due still due is:

a.P13,500 c.14,000
b.P9,000 d. 18,250
Mr. Agawbuhay married under the regime of absolute community of property. Survived by his wife, left
behind the following properties and charges upon his estate:

Real property acquired during the marriage P 8,000,000

Family Home, built using community fund 1,000,000
Real property received as a gift during the
Marriage 2,600,000
Lot where family home was built, inherited
During the marriage 400,000
Unpaid obligation, notarized 200,000
Taxes and Losses 1,300,000
Medical Expenses, with receipt, incurred
within 1 year period 1,000,000
Unpaid mortgage, exclusive property 250,000
48. The allowed family home deduction is:
a. P1,000,000 c. P900,000
b. P1,400,000 d. P700,000

49. The deduction for share of the surviving spouse is:

a. P 2,500,000 c. P 3,750,000
b. P 1,250,000 d.P 3,500,000

50. The net taxable estate is:

a. P 1,250,000 c. P1,500,000 b. P 2,500,000 d. P 600,000