Quiz 2 TAX Reviewer PDF

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The net share of the surviving spouse is equal to a) Gross conjugal property less charges against conjugal property b) Net conjugal property multiply by two c)  Net conjugal property divide by two d) Net conjugal property divide by one-halfMARTIN VANIERA citizen of the ...

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The net share of the surviving spouse is equal to a) Gross conjugal property less charges against conjugal property b) Net conjugal property multiply by two c) Net conjugal property divide by two d) Net conjugal property divide by one-half

MARTIN VANIERA citizen of the Philippines and a resident of Quezon City died leaving the following:

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Rest house in Nasugbu, inherited from his father during marriage - P 3,000,000

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Car received as gift from his mother before his marriage - 1,200,000

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Commercial land received as gift from his mother before marriage - 5,700,000

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Income from the commercial land - 600,000

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Building (wife’s paraphernal property) - 1,700,000

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Income from exclusive property of his spouse during marriage - 200,000

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Jewelry owned before the marriage

- 400,000 

Clothes of his wife, purchased with his own income - 100,000

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Other properties at time of death - 950,000

Under the regime of absolute community of property, how much is the decedent's exclusive property ?

a) P 3,000,000 b) P4,200,000 c) P 4,800,000 d) P8,700,000

For a donation to be valid, acceptance of the donation must be made a) During the lifetime of the donor only b) During the lifetime of the donee only c) During the lifetime of the donor and donee d) None of the above

The following are exclusive property under the system of conjugal partnership of gains, which is not? a) Property before marriage b) Inheritance during marriage c) Property acquired during marriage out of exclusive money d) Rental income on a property acquired before marriage

Under the system of conjugal partnership of gains, the vanishing deduction is a) A charge against exclusive property b) A charge against community property c) A charge against conjugal property d) All of the above

Which of the following information is not important in determining the allowable tax credit for donor’s tax paid in a foreign country ? a) Net gift within and without the Philippines b) Gross gift within and without the Philippines c) Gift tax due within and without the Philippines d) Actual gift tax paid in a foreign country

The following are exclusive properties of each spouse, which is not ? a) That which each acquires during the marriage by lucrative title b) That which is purchased with the exclusive money of either spouse c) That which is acquired by exchange with other property belonging to the spouses d) That which is brought to the marriage as his or her own

The table below shows donations made by Mr. and Mrs. MATULUNGIN as follows :

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Jan 25 To their legitimate son, Pancho, on account of marriage, January 20 last year, a car worth P500,000 with P200,000 unpaid mortgage, one-half was assumed by the donee.

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May 31 To the brother of Mr. Matulungin, Jack, his capital property worth P300,000 on account of marriage six months ago with a condition that the donee will pay the donor's tax thereon.

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July 15 To the daughter of Mrs. Matulungin, Cheska, from previous marriage, on account of her marriage 12 months ago, a paraphernal property worth P100,000.

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Aug 20 Conjugal car of the couple worth P400,000 with P200,000 unpaid mortgage, one-half assumed by Cheska and P500,000 worth of land to their four (4) sons on account of their graduation, 20% of which was owned by their closest friend RODY, who agreed to donate his share through a public document.

Assuming taxable year is 2018, how much is the taxable net gift of RODY on August 20, 2018 ? a) P500,000 b) P100,000 c) P 30,000 d) P (150,000)

Assuming taxable year is 2017, how much is the gift tax payable of Mr. Matulungin as of May 31, 2017 ? a) P 14,000

b) P 12,000 c) P 10,000 d) NONE

MARTIN VANIERA citizen of the Philippines and a resident of Quezon City died leaving the following: 

Rest house in Nasugbu, inherited from his father during marriage - P 3,000,000



Car received as gift from his mother before his marriage - 1,200,000



Commercial land received as gift from his mother before marriage - 5,700,000



Income from the commercial land

-

600,000

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Building (wife’s paraphernal property)

- 1,700,000

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Income from exclusive property of his spouse during marriage - 200,000



Jewelry owned before the marriage

- 400,000



Clothes of his wife, purchased with his own income - 100,000



Other properties at time of death

-

950,000

Under the regime of conjugal partnership of gains, how much is the decedent's gross exclusive properties ? a) P 5,700,000 b) P 9,900,000 c) P 10,300,000 d) P 10,700,000

Under the regime of absolute community of property, how much is the decedent's gross conjugal property ? a) P10,300,000 b) P 8,850,000 c) P 6,900,000 d) P5,700,000

A tax imposed on the gratuitous transfer of property between two or more persons who are living at the time the transfer is made is a) Income tax b) Transfer tax c) Gift tax d) Estate tax

On January 20, 2018, KEPWENG sold a real property used in

business for P700,000 to his brother-in-law. The assessed value and zonal value of the land were P850,000 and P1,200,000, respectively. What is the amount of donor's tax due? a) P 15,000 b) P 30,000 c) P 42,000 d) P 72,000

How much is the net taxable gift ? a) P 1,200,000 b) P 700,000 c) P 500,000 d) P 250,000

In the absence of a marriage settlement, or when the regime agreed upon is void, the property. a) Absolute community of properties b) Conjugal partnership of gains c) Absolute separation of properties d) No property relations

The following are required to be listed as part of the gross estate but are exempted from estate tax, which is an exception ? a) Share of the surviving spouse b) Transfer for public use c) Exclusive property of the decedent

d) Amount received by heirs under RA 4917

Which of the following distinguishes conjugal property from community property ? a) Properties inherited during marriage b) Fruits of exclusive property c) Those acquired through occupation during marriage d) Income earned by each spouse during marriage

The estate of a citizen-decedent who died in 2019 are given below:

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Land inherited from his mother (during marriage), two (2) years before death, valued at P16,000,000 when inherited - P 22,000,000

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Other personal property owned before marriage - 15,000,000

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Other personal property acquired during marriage - 7,000,000

Deductions claimed: 

Casualty losses

- 500,000

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Unpaid taxes

- 400,000

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Claims against the estate

- 600,000

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Funeral expenses

-

400,000 

Medical expenses within one year before death - 300,000

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Judicial expenses - 150,000

How much is the net taxable estate under the Conjugal Partnership of Gains ? a) P 44,000,000 b) P 30,136,364 c) P 22,386,364 d) P 22,000,000

How much is the net exclusive property of the decedent under the Absolute Community of Properties ? a) P 37,000,000 b) P22,000,000 c) P15,000,000 d) P10,400,000

How much is the vanishing deduction ? a) P 12,363,636 b) P 13,863,636 c) P 24,636,364 d) P 0

The vanishing deduction rate for a property previously received to decedent’s death is beyond 2 years to 3 years,

a) 100 percent b) 80 percent c) 60 percent d) 40 percent

FANTASIA, a Filipina made the following donations:

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To Weng, a land in Manila worth P500,000

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To Cheng, jewelry in Japan worth P120,000

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To Tyong, PLDT shares amounting to P150,000

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To Tyang, a building in Europe worth P1,800,000 mortgage for P100,000 and assumed by the donee

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To Malou, a land in Cagayan de Oro worth P400,000

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To Wang, P300,000 cash at PNB New York, USA

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P250,000 receivable, 50% condoned by FANTASIA.

She also transferred the following properties:

Selling Price

Fair Market Value

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Car in Makati

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Car in Singapore

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Rest house in Baguio

200,000

300,000

1,000,000

300,000

200,000

2,000,000

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Rest house in Shanghai

1,500,000

2,500,000

How much is the gross gift to be reported by FANTASIA ?

a) P 2,695,000 b) P 3,495,000 c) P 4,370,000 d) P 4,495,000

If FANTASIA is a nonresident alien and there is reciprocity law, how much is the amount of her gross gift ? a) P1,800,000 b) P 2,800,000 c) P 1,000,000 d) P 900,000

Which of the following is not a deduction from the gross gifts ? a) Unpaid mortgage on the donated property assumed by the donee b) Unpaid real estate tax on donated property assumed by the donee c) Diminution on the property donated specifically provided by the donor

d) Unpaid donor’s tax on the property assumed by the donee

The following are elements of donation, which one is not ? a) Capacity of the donee to make the donation b) Capacity of the donor to make the donation c) The donative intent or intent to make a gift on the part of the donor d) The delivery and acceptance of the donation

Which of the following is exclusive property under the system of conjugal partnership of gains ? a) Property before marriage b) Inheritance during marriage c) Property acquired during marriage out of exclusive money d) All of the above

When a property is donated, the basis of the donor’s tax is a) The cost of acquisition if acquired by purchase or the fair market value at acquisition date, whichever is higher b) The agreed value by the donor and the donee c) The fair market value at the time of donation d) None of the above

When the donee is a stranger, the tax payable by the donor shall be a) 30% of the gross gifts

b) 30% of the net gifts c) Based on the graduated rates d) Based on the graduated rates or 30% of the net gifts, at the option of the donor

The fruits from exclusive property of each spouse due or received during marriage under the conjugal partnership of gains are classified as a) Exclusive property b) Conjugal property c) Community property d) Inheritance property...