Solman TAX2 2019 Edition Final PDF

Preview

Summary

SOLUTIONS MANUALTRANSFER & BUSINESS TAXATION, 2019 EditionBy: TABAG & GARCIACHAPTER 1 – SUCCESSION & TRANSFER TAXESTRUE OR FALSE1. TRUE 6. TRUE 11. FALSE 16. TRUE2. TRUE 7. FALSE 12. TRUE 17. FALSE3. TRUE 8. FALSE 13. TRUE 18. TRUE4. FALSE 9. TRUE 14. TRUE 19. TRUE5. FALSE 10...

Description

SOLUTIONS MANUAL TRANSFER & BUSINESS TAXATION, 2019 Edition By: TABAG & GARCIA CHAPT ER1–SUCCESSI ON&TRANSFERT AXES TRUEORF AL SE 1 . TRUE 2 . TRUE

6 . TRUE 7 . F AL SE

1 1 . F AL SE 1 2 . TRUE

1 6 . TRUE 1 7 . F AL SE

3 . TRUE 4 . F AL SE 5 . F AL SE

8 . F AL SE 9 . TRUE 1 0 . F AL SE

1 3 . TRUE 1 4 . TRUE 1 5 . F AL SE

1 8 . TRUE 1 9 . TRUE 2 0 . TRUE

MUL T I PL ECHOI CE 1 . D 1 2 . C 2 3 . D 3 4 . 2 . A 1 3 . C 2 4 . B 3 5 . 3 . D 1 4 . B 2 5 . D 3 6 . 4 . C 1 5 . D 2 6 . D 3 7 . 5 . C 1 6 . C 2 7 . B 3 8 . 6 . A 1 7 . B 2 8 . D 3 9 . 7 . B 1 8 . D 2 9 . A 4 0 . 8 . A 1 9 . C 3 0 . D 4 1 . 9 . B 2 0 . B 3 1 . B 4 2 . 1 0 . A 2 1 . B 3 2 . A 4 3 . 1 1 . D 2 2 . B 3 3 . D 4 4 . * * I n h e r i t a n c ea n dr e p u d i a t i o nt a k e se ff e c t u p o nd e a t ho f t h ed e c e d e n t

D B B D B D D B D B B

4 5 . 4 6 . 4 7 . 4 8 . 4 9 . 5 0 . 5 1 . 5 2 . 5 3 . 5 4 . 5 5 .

B C D D A B A D* * D D B

CHAPT ER2–GROSSEST A TE PROBL EMSOL VI NG ( P2 . 1 ) ( 1 ) P1 9 , 3 0 0 , 0 0 0 ( 2 ) P1 9 , 3 0 0 , 0 0 0 ( 3 ) P1 1 , 0 0 0 , 0 0 0 ( 4 ) P1 4 , 3 0 0 , 0 0 0 Ci t i z e n / Re s i d e n t NRAwi t hR NRAw/ oR ( #1&2 ) ( #3 ) ( #4 ) F a mi l yh o mei nt h ePh i l i p p i n e s P8 , 0 0 0 , 0 0 0 P8 , 0 0 0 , 0 0 0 P8 , 0 0 0 , 0 0 0 Pa r c e l l a n do f wi t hv a c a t i o nh o u s ei nMa l a y s i a 5 , 0 0 0 , 0 0 0 F a r ml a n di nt h ePh i l i p p i n e s 3 , 0 0 0 , 0 0 0 3 , 0 0 0 , 0 0 0 3 , 0 0 0 , 0 0 0 Sh a r e so f s t o c ko f aDC 2 , 0 0 0 , 0 0 0 2 , 0 0 0 , 0 0 0 Sh a r e so f s t o c ko f af o r e i g nc o r p o r a t i o nt h ee nt i r ebus i ne s so fwhi c hi s 5 0 0 , 0 0 0 5 0 0 , 0 0 0 i nt hePh i l i pp i n e s , d e p o s i t e di nab a n ks a f e t yd e p o s i t b o xi nMa l a y s i a Re c e i v a b l ef r o maf r i e n dwh oh a sn op r o p e r t ywh a t s o e v e r 3 0 0 , 0 0 0 3 0 0 , 0 0 0 Re c e i v a b l e su n d e r i n s u r a n c ep o l i c i e s :  L i f ei n s u r a n c ewi t hh i se s t a t ea sr e v o c a b l eb e n e fi c i a r y 2 0 0 , 0 0 0 2 0 0 , 0 0 0  L i f ei n s u r a n c ewi t hh i sd a u g h t e ra sr e v o c a b l eb e n e fi c i a r y 3 0 0 , 0 0 0 3 0 0 , 0 0 0  L i f ei n s u r a n c ewi t hh i ss o na si r r e v o c a b l eb e n e fi c i a r y  L i f ei n s u r a n c e( g r o u p ) t a k e nb yt h ee mp l o y e r o f t h ed e c e d e n t T OT ALGROSSEST AT E P1 9 , 3 0 0 , 0 0 0 P1 1 , 0 0 0 , 0 0 0 P1 4 , 3 0 0 , 0 0 0

( P2 . 2 ) T oJ u a n

1|

P2 5 , 0 0 0 , 0 0 0

Transfer & Business Taxation(2019 Edition) by Tabag and Garcia

T oPe d r o T oMa r i a T oSi s a T o t a l Gr os sEs t a t e

1 8 , 0 0 0 , 0 0 0 1 5 , 0 0 0 , 0 0 0 2 0 , 0 0 0 , 0 0 0 P7 8 , 0 0 0 , 0 0 0

( P2 . 3 )

( P2 . 4 )

Sh a r e so f s t o c k( F r o z e nCo . ) [ ( P8 M+ 3 M) / 8 0 0 , 0 0 0 s hx1 0 0 , 0 0 0s h a r e s P1 , 3 7 5 , 0 0 0 Sh a r e so f s t o c k( Di v e r g e n t Co . . ) 1 0 0 , 0 0 0s h a r e sxP1 5 * * 1 , 5 0 0 , 0 0 0 Sh a r e so f s t o c k( L e n o v oCo . . ) 1 0 0 , 0 0 0s h a r e sxP1 2 1 , 2 0 0 , 0 0 0 T o t a l Gr os sEs t a t e P4 , 0 7 5 , 0 0 0 * * * Me a nv a l u es h a l l b eu s e do nl yi f t h eq u o t a t i o np r i c ea t t h ed a t eo f d e a t hi sn o t d e t e r mi n a b l e( RR2 2 0 0 3 ) ( 1 ) P2 3 0 , 0 0 0 0 ;( 2 ) P1 , 1 0 0 , 0 0 0 ;( 3 ) P0 ;( 4 ) P5 , 0 0 0 , 0 0 0 ;( 5 ) P1 M+[ 1 Mx( 1 Mx1 0 %x1 . 5 ) ] =P1 , 1 5 0 , 0 0 0

MODI F I EDI DENTI F I CATI ON EXERCI SEA 1 . I n c l u d e d 6 . Ex c l u d e d 2 . I n c l u d e d 7 . Ex c l u d e d* 3 . Ex c l u d e d 8 . I n c l u d e d* * 4 . I n c l u d e d 9 . Ex c l u d e d 5 . Ex c l u d e d 1 0 . I n c l u d e d * * * * De s i g n a t e db yt h ep r i o r d e c e d e n t * * Ex c l u s i o n sf r o mt h eg r o s se s t a t e .No n e t h e l e s s , t h et a xc o d er e q u i r e st h e s ei t e mst ob ei n c l u d e dfi r s t i nt h eg r o s se s t a t eb e f o r e d e d u c t i n gt h es a mef r o mt h eg r o s se s t a t e . * * *Be q u e s t st oc h a r i t a b l ei n s t i t u t i o n sa r ec o n s i d e r e de x c l u s i o n sf r o mt h eg r o s se s t a t eo n l yi f t h ep r o b l e mc l e a r l ys t a t e st h a t no tmo r e t h a n3 0 %we r eu s e df o r a d mi n i s t r a t i v ep u r p o s e s .Ho we v e r , e v e ni f n o t mo r et h a n3 0 %o f t h eb e q u e s t swe r eu s e df o r a d mi n i s t r a t i v e p u r p o s e s , s i n c ewh e t h e r o r n o t s u c hi se x e mp t wi l l u n d e r g os c r u t i n yfi r s t b yt h eBI R, t h e s ei t e mss h a l l b ei n c l u d e dfi r s t i nt h eg r o s s e s t a t eb e f o r ed e d u c t i n gt h es a mef o r e s t a t et a xp u r p o s e s . EXERCI SEB

EXERCI SEC 1 . 2 . 3 . 4 . 5 .

2|

1 . 2 . 3 . 4 . 5 .

P0 ; v a l i ds a l e P0 ; v a l i ds a l e P0 ; v a l i ds a l e P4 , 0 0 0 , 0 0 0 P6 , 0 0 0 , 0 0 0

T RUEORF AL SE 1 . T RUE 2 . T RUE 3 . T RUE 4 . F AL SE 5 . T RUE

6 . 7 . 8 . 9 . 1 0 .

F AL SE F AL SE F AL SE T RUE T RUE

1 1 . 1 2 . 1 3 . 1 4 . 1 5 .

F AL SE TRUE TRUE F AL SE F AL SE

1 6 . 1 7 . 1 8 . 1 9 . 2 0 .

TRUE TRUE F AL SE TRUE F AL SE

MUL T I PL ECHOI CE 1 . A 2 . B 3 . D 4 . B

1 6 . 1 7 . 1 8 . 1 9 .

D C B D

3 1 . 3 2 . 3 3 . 3 4 .

C C B A

4 6 . 4 7 . 4 8 . 4 9 .

C D C C

P1 0 M P2 0 M P5 M P1 0 M P0

6 1 . 6 2 . 6 3 . 6 4 .

A A A C

Transfer & Business Taxation(2019 Edition) by Tabag and Garcia

5 . 6 . 7 . 8 . 9 . 1 0 . 1 1 . 1 2 . 1 3 . 1 4 . 1 5 .

C C A B A A A B D A C

2 0 . 2 1 . 2 2 . 2 3 . 2 4 . 2 5 . 2 6 . 2 7 . 2 8 . 2 9 . 3 0 .

A D A A B C C C C D B

3 5 . 3 6 . 3 7 . 3 8 . 3 9 . 4 0 . 4 1 . 4 2 . 4 3 . 4 4 . 4 5 .

B B D B B C C C B B B

5 0 . 5 1 . 5 2 . 5 3 . 5 4 . 5 5 . 5 6 . 5 7 . 5 8 . 5 9 . 6 0 .

B D D C C C B D C C A

6 5 . 6 6 . 6 7 . 6 8 . 6 9 . 7 0 . 7 1 . 7 2 . 7 3 . 7 4 .

D B A C C D C A D D

Su p p o r t i n gCo mp u t a t i o n s( Mu l t i p l eCh o i c e ) : ( 2 2 ) . Co mmo ns t o c k Su n c h a mp[ ( P4 0 + 3 9 ) / 2 ] x2 , 0 0 0s h a r e s Co mmo ns t o c k–Ag r i Nu r t u r e( 1 , 5 0 0s h a r e sxP4 5 ) Pr e f e r r e ds t o c k–Gr e e n e r y( 3 , 0 0 0s h a r e sxP5 0p a r v a l u e ) Ca r@ F MV Re a l p r o p e r t i e s@ z o n a l v a l u e T o t a l Ex c l u s i onf r o mt hegr o s se s t a t e

P7 9 , 0 0 0 6 7 , 5 0 0 1 5 0 , 0 0 0 4 0 0 , 0 0 0 1 2 0 , 0 0 0 P8 1 6 , 5 0 0

Ba n kd e p o s i t i nt h ef o r e i g nb r a n c ho f ad o me s t i cb a n k Ba n kd e p o s i t i nMa k a t i b r a n c ho f af o r e i g nb a n k Sh a r e so f s t o c ki s s u e db yad o me s t i cc o r p o r a t i o n ( c e r t i fi c a t ek e p t i nCa n a d a ) F r a n c h i s ee x e r c i s e di nMa n i l a Re c e i v a b l e , d e b t o rf r o mMi n d a n a o T o t a l Ex c l u s i onf r o mt hegr o s se s t a t e

P5 0 0 , 0 0 0 3 0 0 , 0 0 0 1 , 0 0 0 , 0 0 0

( 2 3 ) .

8 0 0 , 0 0 0 2 0 0 , 0 0 0 P2 , 8 0 0 , 0 0 0

( 2 4 ) . Ho u s ea n dl o t , f a mi l yh o mei nQu e z o nCi t y Ba n kd e p o s i t i nMa k a t i b r a n c ho f af o r e i g nb a n k Sh a r e so f s t o c ki s s u e db yad o me s t i cc o r p o r a t i o n ( c e r t i fi c a t ek e p t i nCa n a d a ) F r a n c h i s ee x e r c i s e di nMa n i l a Re c e i v a b l e , d e b t o rf r o mMi n d a n a o T o t a l I n c l us i onf r omt h egr os se s t a t e

P1 , 5 0 0 , 0 0 0 3 0 0 , 0 0 0 1 , 0 0 0 , 0 0 0 8 0 0 , 0 0 0 2 0 0 , 0 0 0 P3 , 8 0 0 , 0 0 0

( 2 6 ) . Sh a r e so f s t o c k s , d o me s t i cc o r p . ( c e r t i fi c a t ek e p t i nUK) Sh a r e so f s t o c k s , d o me s t i cc o r p . ( c e r t i fi c a t ek e p t i nPh i l s . ) F r a n c h i s ee x e r c i s e di nt h ePh i l s . Re c e i v a b l e s , d e b t o r i sf r o mPh i l s . I nt a ng i bl e ss u bj e c t t or e c i pr oc i t y

P2 5 0 , 0 0 0 1 0 0 , 0 0 0 2 0 0 , 0 0 0 5 0 , 0 0 0 P6 0 0 , 0 0 0

( 2 7 ) . L a n d&b u i l d i n g , Ph i l i p p i n e s Ho u s ea n dl o t , Ph i l i p p i n e s Sh a r e so f s t o c k s , d o me s t i cc o r p . ( c e r t i fi c a t ek e p t i nUK) Sh a r e so f s t o c k s , d o me s t i cc o r p . ( c e r t i fi c a t ek e p t i nPh i l s . ) F r a n c h i s ee x e r c i s e di nt h ePh i l s . Re c e i v a b l e s , d e b t o r i sf r o mPh i l s . Gr o s sEs t a t e

3|

P2 , 0 0 0 , 0 0 0 3 , 5 0 0 , 0 0 0 2 5 0 , 0 0 0 1 0 0 , 0 0 0 2 0 0 , 0 0 0 5 0 , 0 0 0 P6 , 1 0 0 , 0 0 0

Transfer & Business Taxation(2019 Edition) by Tabag and Garcia

( 3 3 ) . ( 3 4 ) . ( 3 5 ) . ( 3 6 ) .

( P1 2 M/ 1 0 0 , 0 0 0 ) x1 , 0 0 0s h a r e s=P1 2 0 , 0 0 0 P1 0 0x1 , 0 0 0s h a r e s=P1 0 0 , 0 0 0 ; Pa r Va l u e = P1 0 M/ 1 0 0 , 0 0 0=P1 0 0 / s h a r e P1 1 0x1 , 0 0 0s h a r e s=P1 1 0 , 0 0 0 ( P1 4 0+P8 0 / 2 ) x1 , 0 0 0s h a r e s=P1 1 0 , 0 0 0

( 4 4 ) . Co n s i d e r a t i o n r e c e i v e d L a n d P1 , 5 0 0 , 0 0 0 Sh a r e so f s t o c k 1 0 0 , 0 0 0 Vi n t a g ec a r 5 0 , 0 0 0 Pa i n t i n g 2 5 0 , 0 0 0 I NCL USI ONI NT HEGROSSEST AT E ( 4 8 ) .

F MVu p o nt r a n s f e r

F MVu p o nd e a t h

P1 , 5 0 0 , 0 0 0 5 0 , 0 0 0 8 0 , 0 0 0 4 0 0 , 0 0 0

P2 , 0 0 0 , 0 0 0 1 5 0 , 0 0 0 1 0 0 , 0 0 0 5 0 0 , 0 0 0

Gr o s sEs t a t e No n e . V a l i ds a l e No n e . Va l i ds a l e P5 0 , 0 0 0 2 5 0 , 0 0 0 P3 0 0 , 0 0 0

I n c l u d i b l ei nt h eGr o s sEs t a t e=F MV@ t i meo f “ + ”l e s sCo n s i d e r a t i o nr e c e i v e d=P3 0 0 k P1 0 0 k=P2 0 0 , 0 0 0

CHAPTER3–DEDUCTI ONSF ROMTHEGROSSEST ATE PROBL EMSOL VI NG ( P3 . 1 )( a ) P2 , 5 0 0 , 0 0 0c o mp u t e da sf o l l o ws : L o s sd u et os h i p wr e c k , t wo( 2 ) mo n t h sa f t e r t h ed e c e d e n t ’ sd e a t h . Ro b b e r yl o s s Al l owa b l eDe duc t i on

P5 0 0 , 0 0 0 P2 , 0 0 0 , 0 0 0 P2 , 5 0 0 , 0 0 0

( b) P5 0 0 , 0 0 0c o mp u t e da sf o l l o ws : L o s sd u et os h i p wr e c k , t wo( 2 ) mo n t h sa f t e r t h ed e c e d e n t ’ sd e a t h . Al l owa b l eDe duc t i on

P5 0 0 , 0 0 0 P5 0 0 , 0 0 0

( P3 . 2 ) P5 , 7 1 5 , 0 0 0c o mp u t e da sf o l l o ws : Or di na r yDe duc t i ons : Cl a i ma g a i n s t i n s o l v e n t p e r s o n( 5 0 0 , 0 0 0 4 0 0 , 0 0 0 ) Un p a i dt a x e so nt h ee s t a t eb e f o r ed e a t h Un p a i dmo r t g a g eo nt h ee s t a t e F u n e r a l e x p e n s e s( n ol o n g e r a l l o we du n d e rT RAI NL a w) J u d i c i a l e x p e n s e s( n ol o n g e ra l l o we du n d e r T RAI NL a w) Un p a i dl o a n sa r i s i n gf r o md e b t i n s t r u me n t s( n o t a r i z e d ) Un p a i dl o a n sa r i s i n gf r o md e b ti n s t r u me n t s( n o tn o t a r i z e d ) .T h ed e b t i n s t r u me n twa si s s u e db yafi n a n c i a li n s t i t u t i o nn o tr e q u i r i n gn o t a r i z a t i o n s f o r d e b t i n s t r u me n t si s s u e d Ca s u a l t yl o s s Sp e c i a l De duc t i on s: St a n d a r dd e d u c t i o n Me d i c a l e x p e n s e s( n ol o n g e r a l l o we du n d e r TRAI NL a w) T o t a l Al l owa bl ede duc t i onf r omt h egr o s se s t a t e

P1 0 0 , 0 0 0 1 5 0 , 0 0 0 2 0 0 , 0 0 0 1 2 5 , 0 0 0 7 5 , 0 0 0

6 5 , 0 0 0 5 , 0 0 0 , 0 0 0 P5 , 7 1 5 , 0 0 0

( P3 . 3 )( Cl a i mAg a i n s t I n s o l v e n t Pe r s o n s ) Ca s eA:P1 0 0 , 0 0 0

4|

Transfer & Business Taxation(2019 Edition) by Tabag and Garcia

Ca s eB:P3 3 3 , 3 3 3c o mp u t e da sf o l l o ws : Re c e i v a b l e Co l l e c t i b l ep o r t i o n( 4 0 0 / 1 , 2 0 0 )x5 0 0 , 0 0 0 De d uc t i b l ec l a i m( Unc ol l e c t i b l ep or t i on)

P5 0 0 , 0 0 0 ( 1 6 6 , 6 6 7 ) P3 3 3 , 3 3 3

Ca s eC:P0 . De b t o r i sn o t i n s o l v e n t Ca s eD:P2 5 0 , 0 0 0 T o t a l As s e t s T a x e sp a y a b l e( Go v ’ t i sap r i o r i t yc r e d i t o r ) As s e t sa f t e rd e d u c t i n gu n p a i dt a x e s

P1 , 2 0 0 , 0 0 0 ( 8 0 0 , 0 0 0 ) P4 0 0 , 0 0 0

Re c e i v a b l e( CAI P) Co l l e c t i b l e( 4 0 0 / 8 0 0 ) x5 0 0 , 0 0 0 De d uc t i b l eCl a i ma ga i n s tI ns ol v e n t Pe r s on s

P5 0 0 , 0 0 0 ( 2 5 0 , 0 0 0 ) P2 5 0 , 0 0 0

( P3 . 4 ) P2 0 0 , 0 0 0c o mp u t e da sf o l l o ws : Un c o l l e c t i b l er e c e i v a b l ef r o mJ u a n Un c o l l e c t i b l er e c e i v a b l ef r o mMa n u e l T o t a l

P1 0 0 , 0 0 0 1 0 0 , 0 0 0 P2 0 0 , 0 0 0

( P3 . 5 ) P1 3 3 , 3 3 3c o mp u t e da sf o l l o ws : De b t o r ’ sAs s e t s T a x e sp a y a b l e( Go v ’ t i sap r i o r i t yc r e d i t o r ) As s e t sa f t e rd e d u c t i n gu n p a i dt a x e s

P4 0 0 , 0 0 0 ( 2 0 0 , 0 0 0 ) P2 0 0 , 0 0 0

Re c e i v a b l e( CAI P) Co l l e c t i b l e( 2 0 0 / 6 0 0 ) x2 0 0 , 0 0 0 De d uc t i b l eCl a i ma ga i n s tI ns ol v e n t Pe r s on s ( P3 . 6 ) P2 6 2 , 5 0 0c o mp u t e da sf o l l o ws : V a l u et ot a k e 1stDe d u c t i o n : Mo r t g a g ep a i d I n i t i a l b a s i s 2ndDe d u c t i o n : Pr o p o r t i o n a t ed e d u c t i o n ( 7 5 0 / 4 , 5 0 0 ) x5 6 2 , 5 0 0 F i n a l Ba s i s xV a n i s h i n gr a t e Va ni s h i n gDe du c t i on

P2 0 0 , 0 0 0 ( 6 6 , 6 6 7 ) P1 3 3 , 3 3 3

P9 3 7 , 5 0 0 ( 1 8 7 , 5 0 0 ) P7 5 0 , 0 0 0 ( 9 3 , 7 5 0 ) P6 5 6 , 2 5 0 4 0 % P2 6 2 , 5 0 0

( P3 . 7 ) ST ANDARDDEDUCT I ON CASE A P5 , 0 0 0 , 0 0 0 B P5 , 0 0 0 , 0 0 0 C P5 , 0 0 0 , 0 0 0 D P5 0 0 , 0 0 0 E P5 0 0 , 0 0 0 ( P3 . 8 )F AMI L YHOME Ca s eA:P0 Ca s eB:P5 , 0 0 0 , 0 0 0 Ca s eC:P0 ; e x c l u s i v ep r o p e r t yo f t h es u r v i v i n gs p o u s e Ca s eD:P1 0 , 0 0 0 , 0 0 0 Ca s eE:P1 2 M/ 2=P6 , 0 0 0 , 0 0 0

5|

Transfer & Business Taxation(2019 Edition) by Tabag and Garcia

Ca s eF:[ 5 M+( 5 , 0 0 0 , 0 0 0 / 2 ) ] =P7 , 5 0 0 , 0 0 0 ( P3 . 9 ) Qu e s t i o n1 :P7 , 3 0 8 , 0 1 3 ; ( De c e d e n t : Re s i d e n t Ci t i z e n ) Qu e s t i o n2 :P7 , 3 0 8 , 0 1 3 ;( De c e d e n t : Re s i d e n t Al i e n ) ( s a mec o mp u t a t i o nwi t hQ# 1 ) . Do me s t i cs h a r e so f 2 , 0 0 0s h a r e si n h e r i t e d6y e a r sa g o Ho u s ea n dl o t , f a mi l yh o me , l o c a t e di nDa v a o , i n h e r i t e d2y e a r sa g o J e we l r yi t e ms , i nt h ePh i l i p p i n e sa t t h et i meo f d e a t h J e we l r yi t e msk e p t i nav a u l t a b r o a d Ba n kd e p o s i t i naPh i l i p p i n eb r a n c ho f aU. S. b a n k I n t e r e s t f r o mb a n kd e p o s i t ( a f t e rd e a t h ) T r a n s f e r f o r Pu b l i cUs e( d o n a t i o nt ot h eg o v ’ t p r o v i d e di nh i swi l l ) GROSSEST A TE ORDI NARYDEDUCT I ONS: F u n e r a l e x p e n s e s , Ph i l i p p i n e s J u d i c i a l e x p e n s e s , a b r o a d J u d i c i a l e x p e n s e s , Ph i l i p p i n e s Cl a i msa g a i n s t t h ee s t a t e T r a n s f e rf o r Pu b l i cUs e Va n i s h i n gd e d u c t i o n s ( Sh a r e sof s t o c k s=None ; Hou s ea ndL ot =Al l owe d) SPECI ALDEDUCT I ONS St a n d a r dDe d u c t i o n( T RAI NL a w) F a mi l yHo me Me d i c a l Ex p e n s e s RA4 9 1 7 NETT AXABLEEST ATE V a l u et ot a k e 1stDe d u c t i o n : Mo r t g a g ep a i d I n i t i a l b a s i s 2ndDe d u c t i o n : Pr o p o r t i o n a t ed e d u c t i o n ( 1 , 5 0 0 / 1 5 , 8 5 0 ) xP3 7 0 , 0 0 0 F i n a l Ba s i s xV a n i s h i n gr a t e Va ni s h i n gDe du c t i on

P8 , 0 0 0 , 0 0 0 2 , 0 0 0 , 0 0 0 4 0 0 , 0 0 0 2 0 0 , 0 0 0 5 , 0 0 0 , 0 0 0 2 5 0 , 0 0 0 P1 5 , 8 5 0 , 0 0 0 1 2 0 , 0 0 0 2 5 0 , 0 0 0 1 , 1 7 1 , 9 8 7 * * ( 1 , 5 4 1 , 9 8 7 ) 5 , 0 0 0 , 0 0 0 2 , 0 0 0 , 0 0 0 -

( 7 , 0 0 0 , 0 0 0 ) P7 , 3 0 8 , 0 1 3

P1 , 5 0 0 , 0 0 0 P1 , 5 0 0 , 0 0 0 ( 3 5 , 0 1 6 ) P1 , 4 6 4 , 9 8 4 8 0 % P1 , 1 7 1 , 9 8 7 * *

( P3 . 1 0 ) Que s t i o nNo. 1 T FPU Ho u s ea n dL o t i nMa k a t i ( F a mi l yHo me ) F a r mL o t Ot h e r r e a l p r o p e r t i e s Cl a i ma g a i n s t i n s o l v e n t p e r s o n T r a n s f e r i nc o n t e mp l a t i o no f d e a t h T o t a l Gr os sEs t a t e

P3 0 0 , 0 0 0 1 , 5 0 0 , 0 0 0 8 2 5 , 0 0 0 1 5 , 0 0 0 , 0 0 0 2 2 5 , 0 0 0 1 , 2 5 0 , 0 0 0 P1 9 , 1 0 0 , 0 0 0

Al l owa b l eDe duc t i ons F u n e r a l e x p e n s e s

-

J u d i c i a l e x p e n s e s

-

T FPU( c o r r e c t a mo u n t )

6|

( 3 0 0 , 0 0 0 ) **

Transfer & Business Taxation(2019 Edition) by Tabag and Garcia

Cl a i ma g a i n s t i n s o l v e n t p e r s o n

( 2 2 5 , 0 0 0 0 ) * *

Un p a i dmo r t g a g eo nf a r ml o t

( 7 5 , 0 0 0 ) * *

St a n d a r dd e d u c t i o n

( 5 , 0 0 0 , 0 0 0 )

Me d i c a l e x p e n s e s

-

F a mi l yHo me T AXABLENETEST ATE

Que s t i o nNo. 2 V a l u et ot a k e

( 1 , 5 0 0 , 0 0 0 ) P1 2 , 0 0 0 , 0 0 0

P5 7 5 , 0 0 0

Mo r t g a g ep a i d( P1 5 0 , 0 0 0 P7 5 , 0 0 0 )

( 7 5 , 0 0 0 )

I n i t i a l Ba s i s

5 0 0 , 0 0 0

Pr o p o r t i o n a l d e d u c t i o n ( 5 0 0 / 1 9 , 1 0 0 ) x6 0 0 , 0 0 0 * *

( 1 5 , 7 0 7 )

F i n a l Ba s i s

4 8 4 , 2 9 3

V a n i s h i n gd e d u c t i o nr a t e

2 0 %

Va ni s h i n gDe du c t i on * * *

P9 6 , 8 5 9

NETEST A TEwi t h o u t VD( f r o mQ# 1 )

P1 2 , 0 0 0 , 0 0 0

Va ni s h i n gDe du c t i on * * *

( 9 6 , 8 5 9 )

T AXABLENETEST ATE

P1 1 , 9 0 3 , 1 4 1

( P3 . 1 1 ) Que s t i o nNo. 1 V AL UET OT AKE( L AND)

P1 , 2 5 0 , 0 0 0

MORT GAGEP AI D

( 5 0 , 0 0 0 )

I NI T I ALBASI S

1 , 2 0 0 , 0 0 0

Pr o p o r t i o n a t eDe d u c t i o n : ( 1 , 2 0 0 / 1 2 , 8 0 0xP7 0 0 , 0 0 0 * * )

( 6 5 , 6 2 5 )

F I NALBASI S

P1 , 1 3 4 , 3 7 5

V ANI SHI NGDEDUCT I ON%

4 0 %

V ANI SHI NGDEDUCT I ON

P4 5 3 , 7 5 0

Cor r e c t EL I T+TF PU: = 1 , 2 0 0 k + 1 0 0 k 3 0 0 k 6 0 0 k + 3 0 0 kTFPU= P7 0 0 , 0 0 0 * * *

Que s t i o nNo. 2 Gr o s sEs t a t e

7|

P1 2 , 8 0 0 , 0 0 0

Transfer & Business Taxation(2019 Edition) by Tabag and Garcia

Cor r e c t L o s s e s , I n d e b t e d n e s s , T a x e s( L I T)

( 4 0 0 , 0 0 0 )

T FPU

( 3 0 0 , 0 0 0 )

V a n i s h i n gd e d u c t i o n

( 4 5 3 , 7 5 0 )

St a n d a r dd e d u c t i o n

( 5 , 0 0 0 , 0 0 0 )

F a mi l yHo me

( 2 , 0 0 0 , 0 0 0 )

Me d i c a l e x p e n s e s( r e p e a l e du n d e r TRAI NL a w)

-

De a t hb e n e fi t su n d e r RA4 9 1 7

( 2 0 0 , 0 0 0 )

Ne t t a x a b l ee s t a t e

P4 , 4 4 6 , 2 5 0

T RUEORF AL SE 1 . T RUE 2 . T RUE 3 . T RUE 4 . T RUE 5 . F AL SE

6 . 7 . 8 . 9 . 1 0 .

F AL SE T RUE F AL SE T RUE T RUE

1 1 . 1 2 . 1 3 . 1 4 . 1 5 .

TRUE F AL SE TRUE F AL SE TRUE

1 6 . 1 7 . 1 8 . 1 9 . 2 0 .

TRUE TRUE TRUE TRUE F A...