Business Tax assignement PDF

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Summary

PROBLEM 1 1. Gross Estate under Conjugal Property of Gains Properties: House and Lot. Retirement Benefits. Fruits of Land. Total Conjugal Properties. Exclusive Properties: Car Acquired. Personal Properties Inherit. Total Exclusive Properties. Gross Estate Under Conjugal Partnership of Gains: 2. Gros...

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PROBLEM 1 1. Gross Estate under Conjugal Property of Gains Common/Conjugal Properties: House and Lot. 1,500,000 Retirement Benefits. 150,000 Fruits of Land. 200,000 Total Conjugal Properties. 1,850,000 Exclusive Properties: Car Acquired. Personal Properties Inherit. Total Exclusive Properties.

300,000 250,000 550,000

Gross Estate Under Conjugal Partnership of Gains: 2,400,000 2. Gross Estate under Absolute Community Property Common/Conjugal Properties House and Lot. 1,500,000 Jewelries. 100,000 Retirement Benefit. 150,000 Total Conjugal Properties. 1,750,000 Exclusive Properties: Car Acquired. Personal Property Inherit. Total Exclusive Properties.

300,000 250,000 550,000

Gross Estate Under Absolute Community of Property: 2,300,000

PROBLEM 2 1. Gross Estate if decedent was not a non resident alien House and Lot. 1,250,000 Condo Unit-China. 1,000,000 Car in the Philippines. 70,000 Car in the China. 60,000 Franchise in Phil. 300,000 Franchise exercise – China. 25,000 Domestic Shares, cert. Kept In China. 55,000 Foreign Shares 90% in Phil. 60,000 Foreign Shares 35% bus. Situs. 15,000 Foreign Shares 51% in Phil. 75,000

Gross Estate:

2,910,000

2. Gross Estate if decedent was non-resident alien (w/reciprocity) House and Lot. 1,250,000 Car in the Philippines. 70,000 Gross Estate: 1,320,000 3. Gross Estate if decedent was non-resident alien(without reciprocity) House and Lot. 1,250,000 Car in the Phil. 70,000 Franchised in Phil. 300,000 Domestic Shares, cert. kept In China. 55,000 Foreign Shares 90% bus.-Phil. 60,000 Foreign Shares 35% bus. Situs. 15,000 Gross Estate. 1,750,000 PROBLEM 3 1. The exclusive property of Juan under Conjugal Partnership of Gains Exclusive Property: Banana Plantation in Davao. 3,000,000 Passenger Jeep, Inherited. 760,000 Total Exclusive Property: 3,760,000 2. Gross Estate of Juan under CPG Common Property: Income of Plantation. Dividends from ARTS Corp. Income of Passenger Jeep. Income of Coconut Land. Cash, Unidentified. Common Property. Exclusive Property. Gross Estate of Juan under CPG.

250,000 52,000 23,000 50,000 55,000 430,000 3,760,000 4,190,000

3. Community Property under ACP Common Property: Banana Plantation. Income of Plantation. Unidentified Cash. Total Conjugal Property.

3,000,000 250,000 55,000 3,305,000

4. Gross Estate under ACP Exclusive Property. Passenger Jeep in Cebu. Income of Passenger Jeep. Total Exclusive Property. Total Conjugal Property. Gross of Juan under ACP.

760,000 23,000 783,000 3,305,000 4,088,000

PROBLEM 4 1. How much is the exclusive property of wife? Jewelry: 250,000 2. How much is the gross estate of H Exclusive Property Land Inherited. 800,000 Family Home. 2,000,000 Grocery Store. 3,500,000 Total Exclusive Property. 6,300,000 Conjugal Properties Earned By H. Cash brought into marriage-H. Cash brought into martigae-wife. Total Conjugal Property. Total Gross Asset of H. PROBLEM 5 Exclusive Property. Residential House. Common Property Earnings from their salary. Car. Income of Farmland. Total. Gross Estate of JL. PROBLEM 6 1. The Gross Estate of Ortega. Exclusive Property: Business Interest. Income from Business. Total of Exclusive Property.

200,000 150,000 200,000 550,000 6,850,000

3,000,000 200,000 600,000 400,000 1,200,000 4,200,000

1,400,000 350,000 1,750,000

Conjugal Properties: Earnings Salary from Ortega. Earnings Salary from Vicky. Luxury Cars. Unidentified Cash Savings Total Conjugal Property.

200,000 180,000 3,000,000 100,000 3,480,000

1. Gross Estate of of Ortega: 5,230,000 2. Total Conjugal Property: 3,480,000

PROBLEM 7 Riceland. Machine. Shares of Stock. Delivery Truck Condo Unit. Gross Estate of J. PROBLEM 8

1,800,000 1,000,000 220,000 450,000 2,300,000 5,770,000

Cases

Gross Estate

Deduction

1

2,300,000

2,300,000

2

4,500,000

3,000,000

3

3,000,000

1,500,000

4

Not Taxable

Not Taxable

5

3,800,000

3,400,000

Computation Gross Estate(1.5M+800k) 2,300,000 Special Deduction. (2,300,000) Taxable Amount. 0 Gross Estate(3M+1.5M) 4,500,000 Less: Special Deduction (3M/2+1.5) 3,000,000 Taxable Amount. 1,500,000 Gross Estate(2M+1M) 3,000,000 Special Deduction (2M+1M/2) (1,500,000) Taxable Amount. 1,500,000 Gross Estate.(3M+800) 3,800,000 Special Deductions (3M+800/2) (3,400,000) Taxable Amount. 400,000

PROBLEM 9 1. Total amount of Conjugal Property House and Lot in Manila. Cash, Receivables, etc. Market Value. Total Conjugal Property. 2. Gross Estate Exclusive Property Shares of Stock, SMC. Shares of Stock,ABB. Land, Manila. House,QC. Land- inherited by father. Total Exclusive Property. Gross Estate.

40,000 45,000 100,000 1,175,000 900,000

3. Value To take. Mortgage Paid. Initial Basis. Less: proportionate Basis (900/5000*353,000) Final Basis. *deduction rate. Vanishing Deduction. 4. Gross Estate. Ordinary Deduction. 353,000 Vanishing Deduction 669,168. Special Dedeuction Family Home. 1,000,000 Standard Deduct. 1,000,000 Medical Exp. 45,000 Net Estate. Share of Surviving Spouse. (2,740,000- 328,000 /2) Net Taxable Estate. 5. 33,146 – A

PROBLEM 10

2,000,000 715,000 25,000 2,740,000 – A

2,260,000 5,000,000 – B 935,000 (35,000) 900,000 63,540 836,460 .80 669,168 – C 5,000,000 (1,022,168)

( 2,045,000) 1,932,832 ( 1,206,000) 726,832 – B

Items in Deduction 1. Funeral Expense

2. Judicial Expenss 3. Claims against estate 4. Claim against insolvent person 5. Unpaid Taxes 6. Losses 7. Unpaid Mortgage 8. Transfer for Public Use 9. Vanishing Deductio n 10. RA 4917

Resident Citizen Old Lowest of Actual Value Exp, 5% of gross estate or 200,000 Deductible Court/Litigation Exp. Deductible Unpaid obligation of decedent Deductible Deductible

Resident Alien

New Not Deductible

Not deductible

Old Lowest if Actual Value Exp, 5% of gross estate or 200,000 Deductible Court/litigation exp Deductible

New Not deductible

Not Deductible

Deductible

Deductible

Deducttible

Deductible

Deductible

Deductible

Deductible

Deductible

Deductible

Deductible

Deductible

Deductible

Deductible

Deductible

Deductible

Deductible

Deductible

Deductible

Deductible

Deductible

Deductible

Deductible

Deductible

Deductible

Deductible

None

None

Property previously Tax Deductible Deductible

Deductible

11. Share of Surviving Spouse

Deductible

Deductible

None

None

12. Medical Exp

Deductible Within 1 year of death

Not Deductible

None

None

13. Standard Deductio n

1,000,000 Deductible

5,000,000 Deductible

None

500,000

14. Family Home

Lower of FMV home or 1,000,000 Deductible

Lower of FMV home or 10,000,000 Deductible

None

None

15.

PROBLEM 11 Net Estate, A. Net Estate, B. Net Estate, Phil. Net Taxable Estate. Rate of Tax. Estate Tax Due. Less: foreign estate tax paid A, Tax paid. 3,500 Limit(100/500*30k) 6,000 Credit Allowed Lower. 3,500 B, Tax Paid. 5,000 Limit(200/500*30k) 12,000 Credit Allowed Lower. . 5,000 Total Credit 1st Limitation. 8,500 2nd, Limit (300/500*30k) 18,000 Credit Allowed Lower. Estate Tax Payable.

100,000 200,000 200,000 500,000 6% 30,000

8,500 21,500

1. 8,500 – B 2. 21,500 – D PROBLEM 12 1. Estate Tax Due Interest (25k*.12*365/365) Surcharge. (25,000 * 25%) Tax Amount Due.

25,000 3,000 6,250 34,250 - C

2. Estate Tax Due. Interest (25k*.12*730/365) Surcharge. (25,000 * 50%) Tax Amount Due.

25,000 6,000 12,500 43,500 - B...