Tax - tax2 PDF

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Test I. Multiple Choice-True or False a. Both statements are true b. Only statement 1 is true c. Both statements are false d. Only statement 2 is true Taxation of the estate shall be governed by the statute or law in force at the time of distribution of the estate to the heirs. F Succession takes pl...

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Test I. Multiple Choice-True or False a. Both statements are true b. Only statement 1 is true c. Both statements are false d. Only statement 2 is true

1. Taxation of the estate shall be governed by the statute or law in force at the time of distribution of the estate to the heirs. F Succession takes place upon the determination of the respective shares of the heirs in the estate of the decedent. F

2. Unpaid mortgage indebtedness is deductible from the gross estate provided the said property subject to the indebtedness is included in the gross estate, net of mortgage indebtedness. F A donation inter-vivo by the decedent to the Philippine government a few months before his death is a deduction from the gross estate. F

3. Under CPG, the sale of separate property may produce a separate property and conjugal property. T Under CPG, the sale of conjugal property may produce a separate property and conjugal property. F

4. The fruit of inherited properties before marriage are exclusive under absolute community of properties. F All fruits, accruing before or after the marriage, are conjugal properties. F

5. Listed stocks are valued at their par value in gross estate. F Properties not owned by the decedent may be included in gross estate. F

6. No estate tax is due if the net taxable estate is negative. T Once there is death, the estate tax is always payable. F

7. The vanishing deduction is applicable only to properties inherited by the decedent within five years before his death. F Special deductions do not reduce the hereditary estate of the heirs. T

8. Non-resident alien can claim standard deductions. T Casualty loss of the estate can be claimed as deduction either in income tax return or estate tax return of the decedent. T

9. Non-resident aliens can claim only a fractional part of expenses, losses, indebtedness, taxes and transfers for public purpose in getting the deductible LIT. F Non-resident aliens may claim a family home in the special deduction. F

10. Bank deposits withdrawn from the decedent account during the settlement of the estate is a legal exclusion in the gross estate of the decedent if made within one year from the decedent’s death and said withdrawn was already subjected to the 6% final tax . T

Properties acquired using GSIS benefits can still be exempt or legal exclusion in gross estate of the decedent so long as the heirs or administration can prove that the properties were acquired using the exempt benefits. T

11. The income of donated properties before marriage are exclusive properties under conjugal partnership. T The property inheritance before the marriage is common property under absolute community

of property. T

12. Jewelry is generally considered community property. T Jewelry inherited during the marriage is exclusive property. T

13. The spouses can stipulate the conjugal partnership of gains as their property regimes even in the current time. T In default of agreement as to the property relation between the spouses, the absolute separation of property is presumed. F

14. All fruits before the marriage are conjugal properties. F All fruits during the marriage are communal properties. F

15. All properties brought into the marriage are separate under the conjugal partnership of gains. T All properties brought into the marriage are common properties under ACP. F...