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    Answers - Business Taxation - Gross Estate (Chapter 13)

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    Gino Cajolo
    The document summarizes key concepts relating to gross estate for estate tax purposes from a chapter on Business Taxation. It defines gross estate as the total value of an individual's assets at death before deducting liabilities. It provides examples of items included and excluded from gross estate. It also contains answers to review questions testing understanding of concepts like transfers considered part of gross estate and determining fair market value of estate assets.

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    Answers - Business Taxation - Gross Estate (Chapter 13)

    Uploaded by

    Gino Cajolo
    685 views2 pages
    The document summarizes key concepts relating to gross estate for estate tax purposes from a chapter on Business Taxation. It defines gross estate as the total value of an individual's assets at death before deducting liabilities. It provides examples of items included and excluded from gross estate. It also contains answers to review questions testing understanding of concepts like transfers considered part of gross estate and determining fair market value of estate assets.

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    ANSWERS - BUSINESS TAXATION - GROSS ESTATE (CHAPTER 13)

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    The document summarizes key concepts relating to gross estate for estate tax purposes from a chapter on Business Taxation. It defines gross estate as the total value of an individual's assets at death before deducting liabilities. It provides examples of items included and excluded from gross estate. It also contains answers to review questions testing understanding of concepts like transfers considered part of gross estate and determining fair market value of estate assets.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    685 views2 pages

    Answers - Business Taxation - Gross Estate (Chapter 13)

    Uploaded by

    Gino Cajolo
    The document summarizes key concepts relating to gross estate for estate tax purposes from a chapter on Business Taxation. It defines gross estate as the total value of an individual's assets at death before deducting liabilities. It provides examples of items included and excluded from gross estate. It also contains answers to review questions testing understanding of concepts like transfers considered part of gross estate and determining fair market value of estate assets.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    SOUTHERN PHILIPPINES
    INSTITUTE OF SCIENCE AND TECHNOLOGY
    Date: April 12, 2021
    STUDENT NAME: JULINE GRACE T. CAJOLO DEGREE: BSA – 2ND YEAR
    SUBJECT TITLE: Business Taxation INSTRUCTOR: Mr. Linofel De Dios

    CHAPTER 13 (A) – Estate Tax: Gross Estate

    CHAPTER 13 – SELF – TEST EXERCISES (Answers)

    1. Gross estate is a term used to describe the total value of an individual's assets at the time of
    their death. A gross estate value does not consider his figure debts owed and tax liabilities. Once
    liabilities are deducted from a gross estate value, the remaining sum represents the estate's net
    value.

    2. Gross estate is the gross value of a person's estate at the time of their death before liabilities
    such as outstanding debt and taxes are subtracted. Generally, assets are included in the gross
    estate at their fair market value on the date of the decedent's death.

    3. a. Merger of the usufruct in the owner of the naked title


    b. The transmission or delivery of the inheritance or legacy by the fiduciary heir or legatee to the
    fideicommissary.
    c. The transmission from the first heir, legatee, or done in favor of another beneficiary, in
    accordance with the desire of predecessor.
    d. Proceeds of irrevocable life insurance policy payable to beneficiary other than the estate,
    executor or administrator.
    e. Properties held in trust by the decedent.
    f. Separate properties of the surviving spouse of the decedent.
    g. Transfer by way of bona fide sales.

    4. a. Proceeds of group insurance taken out by a company for its employees.


    b. Proceeds of GSIS policy or benefits from GSIS.
    c. Accruals from SSS
    d. United States Veterans Administration USVA benefits – RA 136
    e. War damage payments
    f. All bequest, devices, legacies or transfers to social welfare, cultural and charitable institution,
    no part of net income of which insures to the benefit of any individual; provided, however, that
    not more than 30% of the said bequest, devices, legacies or transfers shall be used by such
    institutions for administration purposes.
    g. Acquisitions and or transfers expressly declared as non-taxable by law.
    5. a. Transfer in contemplation of death.
    b. Revocable transfers, including conditional transfers.
    c. Property passing under general power of appointment.

    6. This refers to the excess of the FMV at the time of death over the value of the consideration
    received by the decedent for any disposition by sale that the decedent made during the
    decedent’s lifetime that is less than a bona fide sale for an adequate and full consideration in
    money or money’s worth.

    7. The fair value of the property as of the time of death shall be the value to include in gross
    estate. Fair value rules set by law or revenue regulations must be followed. In default of such
    fair value rules, reference may be made to fair value rules under generally accepted accounting
    principles. Encumbrances on the property or decrease in value thereof after death shall be
    ignored.

    TRUE OR FALSE (ANSWERS)

    1. TRUE
    2. TRUE
    3. FALSE
    4. TRUE
    5. FALSE
    6. TRUE
    7. TRUE
    8. FALSE
    9. TRUE
    10. FALSE
    11. FALSE
    12. TRUE
    13. FALSE
    14. FALSE
    15. TRUE

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