CHAPTER EXERCISES PROBLEMS P3.1. (LOSSES) vais types of losses were incurred by a decedent/estate as follows: Loss due to typhoon, a day before the decedent's death, P1,000,000. * Loss due to shipwreck, two (2) months after the decedent's death, P500,000. = Loss due to robbery, eight (8) months after the decedent's death, 2,000,000. * — Swindling loss incurred 2 months before death, 800,000 = Gambling losses before death, P2,250,000 REQUIRED: Question #1: How much is the deductible “losses” from the gross estate of the decedent? Question #2: How much is the deductible "losses" from the gross estate of the decedent assuming the robbery loss was incurred 1 % years after the decedent's death? P3.2. (CLAIMS AGAINST THE ESTATE / INDEBTEDNESS, CAIP, etc.) The heirs of a resident citizen decedent with a total gross estate of P15,000,000 provided the following data: * Receivable from Juan, a debtor P500,000 « Amount collectible from Juan 400,000 « Unpaid taxes on the estate before death 150,000 * Unpaid taxes on the estate after death 50,000 * Unpaid mortgage on the estate 200,000 «Funeral expenses 82,000 * Unpaid loans arising from debt instruments (notarized) 125,000 * Unpaid loans arising from debt instruments (not 75,000 notarized). * Casualty loss 65,000 REQUIRED: Determine the total amount of allowable deduction from gross estate of the decedent including applicable special deduction. 113,Chapter Exeries ~ Deceey i -PERSONS - CAIP) ps, ceLams AoANsT MSOLEN sarah, Bno PaHI000 FEOoy resiesie fom? oat Se in £0 saoap9 1208000 1200000 eters ot 12 “room "Seape Case ia Ceo ore sm ‘Unpaid taxes: towable deucton- oa eee cs gr SE “ine flowing data teen Fo 03, ly uncolece a occ, #200080, 20% cate 1 BStrs Sint pron who sbsconded, P300,000 REQUIRED: Based on he dala provided, determine the allowab dedston romPedo's goss estate P35, (CLAMS AGANST MSOLVENT PERSONS) Fi etd ete 2000 esas wich sy ee whose records show: notnted fon acer (Peco) Poo Cais 800,600 Pedr’ abies composedot te folowing: + “Duntotte BIR for unpad taxes, P200.000 *Dueto Juan, 200000 Duet ater cetrs,Pe00,000 REQUIRED: Dstemine te anauf alowable deduction fom ‘Man's gress estat elton os ecevatl rom Peco 7 Chiple Exersies Diba fam the Gross Estate P38. (VANISHING DeOUCTO 8 lpn ") oa = fuel of Pee ON ed on December 10, 2020, leaving @ #1250000, which he bert tom i ane at! aun Zor. na elon was revo tned ahs as voce OOS eve dessa hot ay thatthe pase ace ‘eetindras ad tale al deste dames i Sper Coos, incuding the unpaid morgage a a.812500 wee os sae . FEGUIED. Cocina onc amt hr ion, fon far. (STANOARO DECUCTON Brine te tone Se darg Soe a deaen om te flowing eens arrears A> Ress sng ane Pg isa head befoyanoeoden San Sasa ‘San’ reson Chan he Bret ect tn eta monet se, epccy cue no tax code is applicable iene & Besse ore ‘2tcoo's nt apse f.8. (FAMaLy HOME). Date the deauabe fly tone 2 tong independent cases: : — recproaly classe under the © Decoosnt is a heasof a family ',00,000 © Decedonts marred. The fondly home Ise excsive propry othe sung 8,000,000 spouse 1D. Decedents mariad. The fami home 10,000,000 'sthe excise propery ofthe decedent E Dececents mares. The family home 12,000,000 ‘sclaratfed os conse propery F —Becedent is mares, Fy percent 10,000,000 (60%) of tho family Pome scassted as anjgal repo the remainder isthe eclusve groper ofthe decedent 1sCate arises + Deities rm the Gross Ete ‘COMPREHENSIVE PROBLEM Pas. ‘The admiistator ofa decedent's estate head of the family) provided the raowing at: Property ‘Shore of steko domes oxporation (2,000 8,000,000 ‘hares inontd sh (6) years 290 use andl amy home, ested in Cava, inerted 2,000,009 to (2) yas ago a value of P1,500,000 wey lems, nthe Phiopines alte time of death 400,009 “owy tems pt ooas 200,009 Bank deposi Pilppine branch ofa U.S. bank 5.000 00, laters rom bank epost eares ater death 2500 Expenses and otter charges 7 Funaral expenses, Pipines 220,000 Josial expenses abroad *on0% “uci expenses, Phipines ‘0,000 ‘las again i esate wih th notarized debt 12000 ‘stuentissuedin the Philpes, ‘Donalion'o te Phipine goverment se provided in his 250.000 REQUIRED: Detrmiete not wxatle estate assuming: {The decadent nas apo cizen but a resdent of Austalia 2. Te decedent wa nla Fpino cizen but a resident of Davao Gy Pasta ‘A resident dacodot oad of family, is leaving tho fellowing propeies ‘ang obigatons: ‘Cash In Dank, S0%, donated mors causa to Natl ‘Govt 50.416 0.6 govt 300.0000 Hose and fotin Waka, Family Home 1,500,0000 ter el properties 18,000,000 Farm et 125,000 Claim agninstan inschvet debtor 225000 ‘Transorin contemplation cf est (ratuteus) 1250000 754 rater posing under specal ‘ppoinmere power of 16 leper Exess ~ Delictos fon the Gras Eade Deductions cmos: Funeral expenses 1575000 dial expenses ‘7500 Donation mors causa to Quezon City goverment 1501900 ‘Unpaid morigape en te fark 73000 ‘Te farm lt was ineried § % years ago by the decedent before his oath wah aval then of PS75,000 and » morgage indebledness of 150,000, REQUIRED: Determine the following “1 Tre taxable na sito 2) The tnable et etal asturing the fam ot was inne ve (years ao, Pst, ‘han ded leaving a ross estate of P12 800,00 including 2 land inert irom his uncle 3% yars tox is doth and aca donated to him seven {@) ars betore his dean” The folowing al pertain 10 tho two propertos: ‘Unpaid Monaoae Land 100000 car 30,000, ‘The decedent was able to pay % ofthe unpaid mortgage ont Deters Seat. 1.800.000 ‘300,000 4250000 “00,000 ns (ther dedvetons cimed areas fons: Expenses, lessas, indetodress, taxes P00,000 (cicluding ne vapatd motgaes above) “Transfrto the Got (ncledin the estate) 300,000 ‘Death Benes rom Employer undor RA A017 2on00 Family home (nuded ine estate) 2,000,000, REQUIRED: Determine the net lowing “Vanishing deductons 2. Thenottansbie cea orte es - Delete fo the Gries Eset ‘TRUE OR FALSE 1 Daduciers fam gross estat ae highly disfavored in law: he why clas deductions rust eae jst his claim or right 2. Deductions fom the goss esate xe generaly presumed to by conhgalceductons uss special provided ohewise, 23. Oblpations covraced by a person dng his time aro torminaag pon is death 4. All dais aginst te insolvont person are deductible from the decedent gross exe. 5 Ina claim apie insert person the insolvency ofthe debior must be proven andnol mer alleged. 6, Mt coud be that be amount tobe included as pat ofthe gross este Ing dar apaest rel paso sls thn te fll amount owed, 7. So tat unpaid morgage may be deducted fom the gross esta, he {air mart val of the moigagepropety must form part ofthe gst clap inta, {8 For unpaid as ob dete fom gross estate, such must hae ‘accred the time ar bere the decadent death 8. Unpaid nome tows incuredbelore the cecedent's death & ductile rm to gross esto. 10, Casuty ss& dowet om gots state if such loss was incured ‘hing Be cetiront of he eto. 11 Casualty ose cul be caimed a8 deduction from te gross incon and fom be gos esate. [Link] computing fer varisting deducion, the value to be taken is te lesser amount of he valu ol the property al the date of the prev Iranian or the vale ofthe property af the dale of death of te decedent 1. Vanishing doducton is boing alowed to lessen the impact e ‘socasivo latent same propery win a very shert peo. 14, The bene of arising éaducton may aly be applied once. 15, The maximum amount of deducibie family home from the gre ‘estate upon the elect of he TRAIN Law & P 10,000,000. 18 Chapfler Beans « Deletions fe the G Gros Estate MULTIPLE CHOICE. {Choose the letter of the correct newer. 1. Wm oe otoing waters te? ‘Deductions fom goss ental are high disfavored in aw; he who Clams deductons mus be sb ously Ns claim o ight. »b, Recaps or invoias or ther eudence fo show that the expense ‘was realy incurred, ¥ appkable, must duly support Seductions ‘gains the gross estate Bote" end Nether "nero ‘The este tot Is computed based on the net esate or taxable ‘The net estates dotornined by subtactng rom te gross estate the deductions autorzed by am. é 2, Which is false? ». 6 ORDINARY DEDUCTIONS Lite - indebtedness or Claims agvinst the Estate neh enong fe coning sterile cae? ‘an obligation thal fad prescibed sendy cuing the Metin of {he decedent, or hat was unenfrceane against nm when st ‘iva, wil pot Be claim aganet his estate when he shat be ead Wa monetary aim aganst the decedent ci not aise out of bt" instument, the requrement on. 8 notarized debt ‘tument does ot op a. Teniy ¢ Bothtand 8. ony &. Nether trae 4. The folowing statements periain 10 Indebiedness for estate tax purposes. whichis false? ee Wen 3 person leaves property encumbered by a motgege Indebtedness, Ns prose exiato must naude fhe Tar ramet value of the propery, undminshed by the mergage or Indebtedness ll feude nthe computation for the gross estate oly te equity othe decedent on the propery 10