Estate Tax Problem BACHELOR OF SCIENCE IN ACCOUNTANCY PDF

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ESTATE TAX PROBLEMPERALTA, CLARICEL JOY A.BSA 2DAnswer the following problems and show your solutions pertaining to these problems (MSWord or MS Excel file will be fine): Mr. Juan, a single, a citizen and resident of the Philippines, a head of family, leaving a family home of Php9,500,000, Cash in b...

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ESTATE TAX PROBLEM PERALTA, CLARICEL JOY A. BSA 2D Answer the following problems and show your solutions pertaining to these problems (MSWord or MS Excel file will be fine): 1. Mr. Juan, a single, a citizen and resident of the Philippines, a head of family, leaving a family home of Php9,500,000, Cash in bank of Php3,000,000 and Car of Php2,500,000. There is a receivable of Php400,000 from a debtor who has not enough properties to pay all his obligations. The debtor properties can only pay ¼ of the obligation. Compute the estate tax of Mr. Juan. Gross Estate Family Home Cash Home Car Claims against insolvent person (Receivable) Total Gross Estate Deductions Family Home Standard Deductions NET TAXABLE ESTATE RATE ESTATE TAX

Php 9,500,000 3,000,000.00 2,500,000.00 100,000.00 Php 15,100,000 (10,000,000.00) (5,000,000.00) Php 100,000.00 6% Php 6,000.00

2. Mr. Tank died leaving a gross estate of Php10,000,000. He borrowed Php150,000 from a friend and executed a promisory note but unfortunately forgot to notarized. Before he died, he was not able to pay the real property tax amounting to Php20,000. Compute the estate tax of Mr. Tank. (10 points) Gross Estate Deductions Real Property Tax Standard Deductions NET TAXABLE ESTATE RATE ESTATE TAX

Php 10,000,000.00 ( 20,000.00) (5,000,000.00) Php 4,980,000.00 6% Php 298,800.00

ESTATE TAX PROBLEM 3. Mr. Happy , a citizen and resident of the Philippines, a head of the family, died leaving a family home of Php15,000,000 together with agricultural land of Php5,000,0000. Before he died, in the preceding year, he was not able to pay his income tax worth Php130,000. He borrowed Php500,000 from a friend and executed a promisory note, payable within ninety days from the date of issue, and had it notarized. He died the day after he executed the promisory note. The proceeds of the note were certified by the administrator of the estate as used for family expenses. He also inherited a piece of land from his father with a fair market value of Php10,000,000 when inherited. After, four and half years later, Mr. Happy died with still the same piece of land, at this time with a fair market value of Php11,300,000. Compute the estate tax of Mr. Happy. (10 points) Gross Estate Family Home Agricultural Land Land Total Gross Estate Deductions Family Home Standard Deductions Income Tax Vanishing Deductions Claims against the estate NET TAXABLE ESTATE Rate ESTATE TAX

Php 15,000,000.00 5,000,000.00 11,300,000.00 Php 31,300,000.00 (10,000,000.00) (5,000,000.00) ( 130,000.00) ( 40,256.00) (500,000.00) 15,629,744.00 6% Php 937,784.64

4. Mr. Asher, a resident and citizen of the Philippines died, leaving the following estate to the surviving spouse Angela: Family home (conjugal property) – Php12,000,000; Car (exclusive property of Mr. Asher) – Php2,000,000; Land and Building (conjugal property) – Php8,000,000; Conjugal ordinary deductions – Php500,000. Compute for the estate tax of Mr. Asher. (10 points) Gross Estate Family Home Php 6,000,000.00 Car 2,000,000.00 Land and Building 4,000,000.00 Total Gross Estate Php 12,000,000.00 Deductions Conjugal ordinary deductions ( 250,000.00 ) Standard Deductions ( 5,000,000.00 ) Family Home ( 6,000,000.00 ) NET TAXABLE ESTATE Php 750,000.00 Rate 6% ESTATE TAX Php 45,000...