Taxa2 Quiz2

1. Which of the following losses is not deductible?
 Losses of properties compensated for by insurance

 Losses arising from fires
 Losses arising from theft or embezzlement
 Losses arising from storms or shipwreck
2. How much is the total ordinary deductions?
 P 3,312,000
 P 3,312,127
 P3,294,357
 None of the choices
3. On September 4, 2018, Mr. A died leaving an apartment building which has a fair value of
P1,000,000 which he inherited from his mother. The property was valued at P900,000 at the
time of inheritance dated July 28, 2015. The building has a previous mortgage of P150,000 of
which P50,000 was paid by Mr. A prior to his death. In computing for the vanishing deduction,
what percentage will be used and how much will be the vanishing deduction
 40%; P306,000
 20%; P305,000
 60%; P300,000
 40%; P323,000
4. How much was the

taxable net estate?
 P 10,987,873
 P11,505,643
 P 11,867,873
5. Which of the following properties of Lino who died December 1, 2018 is subject to vanishing
deduction?
Property 1: Rest house in Tagaytay purchased in 2016
Property 2: Commercial lot and building inherited from her mother in 2015 where the estate
tax thereon had not been paid.
Property 3: Donation from a friend in 2017.
Property 4: Property won in a lottery six (6) months before death.
Property 1 Property 2 Property 3 Property 4
 No No Yes Yes
 No No Yes No
 Yes Yes No Yes
 Yes Yes No No
6. Which of the following decedents cannot claim family home deduction?
 Resident citizen
 Resident alien
 Non-resident alien
 Non-resident citizen
7. The gross estate of Juan includes P80,000 receivables which is duly notarized from debtor
Pedro whose records show:
Assets P100,000
Indebtedness to:
• Government (unpaid taxes) 40,000
• Juan 80,000
• Other creditors 20,000
The deductible claims against insolvent person is
 P29,285
 P32,000
 P48,000
 P80,000
8. A citizen of the Philippines and resident of Baguio City, died testate on May 10, 2020. Among
his gross estate are properties inherited from his deceased father who died on April 4, 2017.
What percentage of deduction will be used in computing the amount of vanishing deduction?
 80% of the value taken as basis for vanishing deduction.

9. Statement 1: Losses can be deducted only if incurred during the settlement of the estate.
Statement 2: Losses can be deducted only if incurred prior to the last day for the filing of the
estate tax return and payment of the estate tax
 Both statements are true.

 Both statements are false.
 The first statement is true, but the second statement is false.
 The first statement is false, but the second statement is true.
10. SK Litton, Filipino, has one year more to reach the compulsory retirement age of 65 years
old as an employee of a private firm. Unfortunately, he met a fatal vehicular accident that
caused his instantaneous death. He is survived by his wife and received P1,000,000 from SK
Litton’s employer as benefit under R.A. 4917.
 None, exempt
 P 250,000
 P 500,000
 P 1,000,000
11. The estate tax return shall be filed and paid within
 1 year from the date of death

 2 months from the date of death
 6 months from the date of death
 30 days from the date of death
12. The following are the requisites for vanishing deduction to be allowable, except one.
 The estate tax of the prior succession must have been finally determined and paid.
 The present decedent died within five (5) years from date of death of the prior
decedent.
 The property with respect to which deduction is sought can be identified as having been
received by the present decedent from the prior decedent.
 None of the above.
13. How much was the total deductions allowed?
 P 1,000,000
 P6,000,000
 P5,000,000
 Some other amount
 14. X died leaving a property acquired by purchase from Y who died 3 ½ years ago. The
property is now in X’s gross estate. The estate’s vanishing deduction rate is:
 0%
 20%
 40%
 60%
15. How much was the vanishing deduction?
 P 2,932,000
 P 2,914,357
 P 2,932,127
16. Inno died in 2019. The following are the requisites in claiming casualty losses in the
computation of estate tax, except:
 Losses are not compensation by insurance.

 Losses must not have been claimed as deduction in the computation of income tax.
 Losses were incurred not later than one (1) year from the time of death.
 Losses were incurred not later than the six (6) months from the time of death.
17. The taxable net estate was:

 P 1,000,000
 P6,000,000
 P5,000,000
 Some other amount
18. Gio, a citizen of the Philippines and resident of Manila died intestate on November 2, 2018.
Among his gross estate are properties acquired through public sale of properties left by
Bernardo who died 4 ½ years ago. What percentage of deduction will be used in computing the
amount of vanishing deduction
 60%
 40%
 20%
 nil
19. Which statement is correct? Claims against the estate, as deduction from the gross estate:
Represents obligations enforceable during the lifetime of the decedent.
 Should always be evidenced by a notarized document.

 Is sufficient for deductibility if a valid obligation under the law on obligations.
 If unpaid mortgage of a non-resident, not citizen of the Philippines, the property should
be included in the Philippine gross estate.
20. SK Litton, Filipino, has one year more to reach the compulsory retirement age of 65 years
old as an employee of a private firm. Unfortunately, he met a fatal vehicular accident that
caused his instantaneous death. He is survived by his wife and received P1,000,000 from SK
Litton’s employer as benefit under R.A. 4917.
The amount that must be claimed as a special deduction from SK Litton’s gross estate for the
benefit received under R.A. 4917 is:
 None, exempt
 P 250,000
 P 500,000
 P 1,000,000

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1. Which of the following losses is not deductible?

 Losses of properties compensated for by insurance

2. How much is the total ordinary deductions?

4. How much was the

Property 1 Property 2 Property 3 Property 4

6. Which of the following decedents cannot claim family home deduction?

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

 Both statements are true.

 1 year from the date of death

15. How much was the vanishing deduction?

 Losses are not compensation by insurance.

17. The taxable net estate was:

 Should always be evidenced by a notarized document.

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