Estate CPA Report Sample

REPORT OF FACTUAL FINDINGS ON THE ITEMIZED ASSETS OF THE DECEDENT,
ITEMIZED DEDUCTIONS AND THE ESTATE TAX DUE
To the Heirs
TIN:
We have performed the agreed-upon procedures, agreed with you and enumerated below, with
respect to the issuance of a statement, duly certified by a Certified Public Accountant pursuant
to Revenue Regulations (RR) No. 12-2018, containing the following:
1. Itemized assets of the decedent with their corresponding gross value at the time of
his death, or in the case of a nonresident, not a citizen of the Philippines, of that part
of his gross estate situated in the Philippines;
2. Itemized deductions from gross estate allowed in Section 86 of the Tax Code, as
amended; and
3. The amount of tax due whether paid or still due and outstanding.
Our engagement was undertaken in accordance with the Philippine Standard on Related
Services 4400, Engagement to Perform Agreed-Upon Procedures Regarding Financial
Information. The procedures were solely to assist in the evaluation of the accompanying
certification of gross estate, allowable deductions, and the amount of estate tax due.
Accordingly, this statement is in compliance with the requirements under the Tax Code, as
amended, and RR 12-2018.
The agreed-upon procedures we performed were as follows:
1. Ascertained the composition and valuation of the gross estate of the decedent consisting
of all properties, real or personal, tangible or intangible, wherever situated;
2. Ascertained the itemized deductions from the value of the gross estate of the decedent;
3. Determined the value of the net estate subject to estate tax; and
4. Determined the amount of tax whether paid or still outstanding.
Based on the procedures we performed, the estate tax due is P 477,596.57 summarized below:
Exclusive Conjugal Total
Real Properties excluding family home 9,725,000.00 6,469,872.46 P 16,194,872.46
Personal Properties - - -
Family Home 7,652,875.00 7,652,875.00
Gross Estate 9,725,000.00 14,122,747.46 23,847,747.46
Less:
Ordinary Deductions - - -
Estate after Ordinary Deductions 9,725,000.00 14,122,747.46 23,847,747.46
Less: Special Deductions
Standard Deduction 5,000,000.00

Family Home (lower of FMV or 10M (if exclusive not to exceed 10M) 3,826,437.50
(if conjugal, FMV is 1/2 but not to exceed 10M
Total Special Deductions 8,826,437.50
Net Gross Estate before share of surviving spouse 15,021,309.96
Less: Share of Surviving Spouse- 50% of the Conjugal Property 7,061,373.73
Net Taxable Estate 7,959,936.23
Applicable Tax Rate 6%
Estate Tax Due P 477,596.17
The results of the agreed-upon procedures we performed are discussed below. For the
breakdown of the properties and proper presentation of allowable deductions from the gross
estate pursuant to the Tax Code, as amended, and Section 8 of RR 12-2018, please refer to
Annexes “A to B” for the specific details:
1. With respect to procedure No. 1, based on the supporting documents provided to us and
pursuant to Section 5 of RR No. 12-2018, we ascertained that the total amount of the
gross estate is P23,847,747.46, as follows:
Real Properties Excluding Family Home P 18,809,072.46

(Annex A.1)
Family Home 7,665,000.00
Total P 23,847,747.46
a. With respect to real properties, we verified the certified true copies of the
Original/Transfer Certificates of Title, Tax Declarations, Certificates of No
Improvement and Certificate of Landholdings under the name of the
decedent. We determined the appraised value of the real property as of the
time of death, whichever is higher of-
i. The fair market value (FMV) as determined by the Commissioner;
or
ii. The FMV as shown in the schedule of values fixed by the
provincial or city assessors, whichever is higher.
b. With respect to personal/movable properties, there were no documents

provided to us showing that the decedent owned personal properties at the
time of death.
2. With respect to procedure No. 2, based on the supporting documents provided to us and
pursuant to Section 8 of RR No. 12-2018, we ascertained that the total amount of the
itemized deductions to compute the net estate is P 15,887,811.23, as shown in the table
below:
Standard Deduction P 5,000,000.00

Family Home 3,826,437.50
Share of Surviving Spouse* 7,061,373.73
Total Itemized Deduction P 15,887,811.23
3. With respect to procedure No. 3, based on the foregoing and pursuant to Section 6 of
RR No. 12-2018, the amount of net estate subject to estate tax is P7,959,936.23.
Please refer to Annex B for the detailed computation of the net estate.
4. With respect to procedure No. 4, the amount of estate tax due is P 477,596.17,computed
as follows:
Exclusive Conjugal Total
Real Properties excluding family home 9,725,000.00 6,469,872.46 P 16,194,872.46
Personal Properties - - -
Family Home 7,652,875.00 7,652,875.00
Gross Estate 9,725,000.00 14,122,747.46 23,847,747.46
Less:
Ordinary Deductions - - -
Estate after Ordinary Deductions 9,725,000.00 14,122,747.46 23,847,747.46
Less: Special Deductions
Standard Deduction 5,000,000.00

Family Home (lower of FMV or 10M (if exclusive not to exceed 10M) 3,826,437.50
(if conjugal, FMV is 1/2 but not to exceed 10M
Net Gross Estate before share of surviving spouse 15,021,309.96
Less: Share of Surviving Spouse- 50% of the Conjugal Property 7,061,373.73
Net Taxable Estate 7,959,936.23
Applicable Tax Rate 6%
Estate Tax Due P 477,596.17
Because the above procedures do not constitute either an audit or a review made in accordance
with Philippine Standards on Auditing, we do not express any assurance on the financial and
non-financial information covered by the agreed-upon procedures.
Had we performed additional procedures or had we performed an audit or review of the financial
statements in accordance with Philippine Standards on Auditing, other matters might have come
to our attention that would have been reported to you.
The certification statement is solely for the purpose set forth in the second paragraph of this
report and for your information and is intended solely for submission to the Bureau of Internal
Revenue (BIR) as required under the Tax Code, as amended, and RR No. 12-2018. This
certification statement relates only to the accounts and items specified herein, and do not
extend to any financial statement of the Estate taken as a whole. It should not be used for any
other purpose without our prior written consent.
Very truly yours,

Estate CPA Report Sample

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REPORT OF FACTUAL FINDINGS ON THE ITEMIZED ASSETS OF THE DECEDENT,

ITEMIZED DEDUCTIONS AND THE ESTATE TAX DUE

The agreed-upon procedures we performed were as follows:

Less: Special Deductions

Standard Deduction 5,000,000.00

Real Properties Excluding Family Home P 18,809,072.46

b. With respect to personal/movable properties, there were no documents

Standard Deduction P 5,000,000.00

Less: Special Deductions

Standard Deduction 5,000,000.00

Very truly yours,

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