Quiz On Estate and Donor's Tax - With Answers

Name: _________________________
QUIZ on ESTATE and DONOR’S TAX
General Directions: Never cheat. Attach all your solutions (be it encoded or handwritten), and encircle or
highlight your final answer. Late submissions will have demerits. All amounts should be rounded to the
nearest peso.
PART I – ESTATE TAX

Problem 1: The estate of Pedro, resident citizen, decedent, married, who died on April 1, 2018 are as
follows:
House and lot (family home) 14,000,000

- The lot was acquired at a cost of P3M before marriage while the house was
constructed on March 1, 2018, during marriage, at a cost of P10M from
partnership funds. The lot had a FMV of P4M after construction of the house.
Other properties acquired during marriage 6,000,000
Jewelry inherited on Feb 14, 2017, during marriage, then with a FMV of P1,300,000 2,500,000
Property in US received as gift during marriage from a friend on Jan 12, 2017 (the 2,300,000
applicable donor’s tax was not paid by the donor)
Rental income on the above property up to time of death 1,200,000
Expenses/Claims
Funeral expenses 420,000
Judicial expenses 800,000
Casualty losses incurred on Dec 10, 2018 600,000
Claims against the estate 1,600,000
Medical expenses within 1 year prior to death, only half was receipted 4,000,000
Required:
1. How much is the net taxable estate under Conjugal Partnership of Gains?
2. How much is the net taxable estate under Absolute Community of Property?
(19,348,000/2)
Problem 2: The following information were from the estate of a married citizen decedent who died on
June 2019:
Property:
Family home 12,000,000
Domestic shares inherited 6 years ago during marriage 6,000,000
Bank deposit, representing dividend earned during marriage 1,000,000
Jewelry received as gift 8 years ago during marriage 1,000,000
Expenses:
Claims against the estate 4,000,000
Funeral expenses 1,000,000
Judicial 500,000
Medical expenses 1,500,000
Required:
1. Under Conjugal Partnership of Gains, gross conjugal property is?
2. The share of the surviving spouse is?
3. The net taxable estate of the decedent is?
Problem 3: Sarah, a resident of China, and a Chinese citizen died last July 4, 2019 leaving the following
properties:
Land in Davao 20,000,000
Rest house in China 10,000,000
Jewelries received from Lumen, a week before her death 5,000,000
Vehicles 8,000,000
The descendants of Sarah claimed the following deductions:

Funeral expenses 3,000,000
Claims against insolvent persons 5,000,000
Losses 1,000,000
Medical expenses incurred from Sept 2016 to July 4, 2019, 2,000,000
50% unpaid
Standard deduction 5,000,000
Required:
1. The gross estate is
2. Total CUCUL shall be:
3. Deductible vanishing deductions should be:
4. Net taxable estate is:
Allowable CUCUL
53M/63M x 6,000,000
Computation of CUCUL
5M/53M x 5,047,619
Problem 4: A citizen-decedent died in 2018 with the following data:

Philippines USA
Gross estate 14,200,000 4,400,000
Allowable Deductions (excluding Standard Deduction) 6,400,000 2,200,000
Estate tax paid - 150,000
Required:
1. How much is the estate tax payable in the Philippines assuming the decedent is a non-resident
citizen?
2. How much is the estate tax payable in the Philippines assuming the decedent is a non-resident
alien?
Problem 5: Mr. Nanahimik, citizen decedent, died on April 10, 2019 with the following data:
Gross Estate Allowable Estate tax
Deductions paid
Philippines 18,750,000 15,750,000 -
China 3,000,000 1,500,000 37,500
Japan 4,500,000 5,250,000 -
USA 6,000,000 2,250,000 180,000
Required:
1. The estate tax payable in the Philippines should be:
PART II – DONOR’S TAX
Problem 1: Mr and Mrs Mapagbigay made the following donations during 2019:
• January 25
- To Oliver, their legitimate son, on account of marriage last January 20, 2016, car worth
P400,000, with P200,000 unpaid mortgage, one-half was assumed by the donee
• May 31
- To John, brother of Mr. Mapagbigay, his capital property worth P200,000 on account
of marriage 6 months ago with a condition that the donee will pay the donor’s tax thereon
• July 15
- To Felicity, daughter of Mrs. Mapagbigay by former marriage, on account of her
marriage 12 months ago, Mrs. Mapagbigay’s paraphernal property worth P100,000
• August 20
- Conjugal car of the couple worth P400,000, with P200,000 unpaid mortgage, one-half
assumed by Felicity and P500,000 worth of land to their four sons on account of their
graduation, 20% of which was owned by their closest friend Roy, who agreed to donate
his share through a public document
Required:
1. The gift tax payable of Mr. Mapagbigay as of May 31 should be:
2. The gift tax payable of Mrs. Mapagbigay as of July 15 should be:
3. The gift taxes payable of Mr. and Mrs. Mapagbigay on August 20 should be:
4. The gift tax payable of Roy on August 20 should be:
Problem 2: Patrick, resident alien, made the following donations for the year 2018:
• April 15
- To Hailey (legally adopted child): Car worth P700,000 in the Philippines
- To Rebekah (daughter): Car in Canada worth P300,000. The donor’s tax paid in
Canada was $200 ($1 = P45)
• July 20
- To Sophie (niece in Manila): P200,000 worth of personal property
- To Davina (legitimate daughter on account of marriage, July 18, 2017): Car in Manila,
worth P400,000 but mortgaged for P200,000, one-half of which was assumed by the
donee
Required:
1. The gift tax payable on April 15 should be:
2. The gift tax payable on July 20 should be:
Problem 3: Julio had the following gifts to his relatives:

Philippines USA UK Italy
Gross gift 750,000 500,000 250,000 500,000
Deductions 250,000 200,000 150,000 150,000
Tax paid - 25,000 12,000 10,000
Required:
1. The donor’s tax payable after tax credit is:

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Name: _________________________

QUIZ on ESTATE and DONOR’S TAX

PART I – ESTATE TAX

House and lot (family home) 14,000,000

The descendants of Sarah claimed the following deductions:

Problem 4: A citizen-decedent died in 2018 with the following data:

2. The gift tax payable of Mrs. Mapagbigay as of July 15 should be:

2. The gift tax payable on July 20 should be:

Problem 3: Julio had the following gifts to his relatives:

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