Question 1

Statement 1: The estate tax accrues at the moment of death of the decedent.

Statement 2: In estate taxation, the taxpayer is the decedent.

Which of the above statements is true?

a). Statement 1 only

Question 2

Which property is valued using the book value?

d). Shares of stock not traded in the stock exchange

Question 3

An excise tax on transfers inter-vivos is

a). Donor’s tax

Question 4

Statement 1: The maximum amount of deductible family home from the gross estate is P10,000,000

Statement 2: If the family home is exclusive property of the surviving spouse and has a current market
value of P1,000,000, such amount is not subject to estate tax.

a). Statement 1 and 2 are correct

Question 5

A resident citizen had a family home in the Philippines. Worked abroad and was temporarily absent
from his family home when he died. Which of the following statements is correct?

c). The decedent would be allowed family home deduction because actual occupancy of the family
home was not interrupted or abandoned because of his temporary absence.

Question 6

A successor or heir who inherits personal property from a decedent by will is known as

b). a legatee
Question 7

Succession which results from the designation of an heir, made in a will executed in the form prescribed
by law is known as

b). Testamentary succession

Question 8

In the event that there are no relatives to receive the inheritance, the one who has the claim on the
estate is

d). The State

Question 9

Which of the following is not a characteristic of donation mortis causa?

c). The transfer to the donee is irrevocable while donor is alive

Question 10

Which of the following is not included in the gross estate?

a). Transfer for sufficient consideration

Question 11

Estate tax is imposed upon the

c). Right to transfer property upon death

Question 12

The following are not included as allowable deductions starting January 1, 2018, which is still included?

c). Claims against the estate

Which of the following taxes is deductible from the gross estate?

d). Donor’s tax accrued prior or before death

Question 14

The common characteristic of transfer taxes is that the transfer of property

a). is gratuitous

Question 15

One of the following is deductible as claim against the estate

a). An obligation contracted by the decedent one day before he died

Question 16

One of the following is not a prerequisite in order that claim against the estate maybe deductible

c). They must have been prescribed

Question 17

Which of the following statements is not correct? “Transfer tax is …

a). Classified as national tax

b). Imposed upon gratuitous transfer of property

c). Of two kinds: estate tax and donor’s tax

d). None of the choices (answer)

Question 18

Which of the following losses is deductible?

d). Theft which occurred during burial of the decedent.

Question 19

The following are justification for the imposition of transfer tax, which is not ?
a). Ability to pay theory

b). Redistribution of wealth theory

c). Privilege or State Partnership Theory

d). None of the choices (answer)

Question 20

The following are remedies against double taxation, which is not ?

d). Transfer for public use

Question 21

An example of intangible personal property without is

d). Foreign shares , stock certificates are kept in Makati

Question 22

One of the following donations is not included as part of gross estate

c). Transfers under special power of appointment

Question 23

Statement 1: the estate tax accrues at the moment of death of the decedent

Statement 2: in estate taxation, the taxpayer is the decedent.

Which of the above statements is correct ?

a). Statement 1 only

Question 24

Who is the taxpayer in an estate tax ?

c). The estate as a juridical entity

A decedent who was married at the time of his/her death will have a gross estate composed of

d). His/her capital property and the common property

Question 26

Which of the following transfers is included in the gross estate ?

b). Transfer under general power of appointment

Question 27

A non-resident alien who is single, died leaving the following properties and deductions :

 Tangible personal property - P 1,500,000

 Shares of stocks, domestic corporation - P 700,000

 Shares of stocks, foreign corporation - P 400,000

 Deductible expenses - P 800,000

What is the amount of total gross estate ?

b). P 2,200,000

Question 28

A non-resident alien who is single, died leaving the following properties and deductions :

 Tangible personal property - P 1,500,000

 Shares of stocks, domestic corporation - P 700,000

 Shares of stocks, foreign corporation - P 400,000

 Deductible expenses - P 800,000

What is the amount of the net taxable estate ?

c). P 1,523,077
Question 29

A non-resident alien who is single, died leaving the following properties and deductions :

 Tangible personal property - P 1,500,000

 Shares of stocks, domestic corporation - P 700,000

 Shares of stocks, foreign corporation - P 400,000

 Deductible expenses - P 800,000

Assuming that there is no reciprocity, what is the amount of the estate tax payable ?

c). P 91,385

Question 30

PHEN GARCES died on September 10, 2019 leaving the following data on deductions:

 Unpaid 2018 real estate taxes - P 40,000

 Unpaid 2019 real property taxes - P 50,000

 Income tax on income from January 1 to September 9, 2019 - P 35,000

 Losses from fire that occurred on September 25 (compensated by insurance, 60% ) - P 800,000

 Casualty loss on November 2019 - P 450,000

 Building destroyed by earthquake fully compensated by insurance - P 1,400,000

What is the amount of total deductions from gross estate ?

a). P 895,000

Question 31

The heirs of a resident citizen decedent with a total gross estate of P15,000,000 provided the following
data:

 Paid funeral expenses - P 168,000

 Unpaid funeral expenses - P 47,800

 Unpaid taxes on the estate before death - P 170,000

 Unpaid mortgage on the estate - P 200,000

 Unpaid loans arising from debt instruments (notarized) - P 125,000

 Judicial expenses - P 100,000

 Casualty loss - P 65,000

 Unpaid medical expenses - P 82,000

What is the amount of allowable deduction from the gross estate classified as “claim against the estate ?

a). P 495,000

Question 32

The heirs of a resident citizen decedent with a total gross estate of P15,000,000 provided the following
data:

 Paid funeral expenses - P 168,000

 Unpaid funeral expenses - P 47,800

 Unpaid taxes on the estate before death - P 170,000

 Unpaid mortgage on the estate - P 200,000

 Unpaid loans arising from debt instruments (notarized) - P 125,000

 Claim against insolvent person - P 100,000

 Judicial expenses - P 100,000

 Casualty loss - P 65,000

 Unpaid medical expenses - P 82,000

What is the amount of the total allowable deductions from the gross estate of the decedent?

c). P 5,660,000

Question 33

The following expenses and obligations were left by Rudolf, a citizen upon his death:

 Notes payable, not notarized - P 30,000

 Loans payable, PNB - P 300,000

 Accounts receivable, debtor not insolvent - P40,000

 Accounts receivable, debtor is insolvent - P 60,000

 Death benefits from employer - P 200,000

 Income taxes on income of decedent’s estate - P 7,500

What is the total amount deductible from gross estate ?

d). P 5,560,000

Question 34

MARKZ DELIMOTZ, a German residing in Munich, Germany had the following data at the time of his
death:

Properties:

 Real property located in Osaka, Japan - P2,400,000

 Lot situated in Davao City - P 6,000,000

 Shares of stocks in a Japanese Corporation - P 600,000

 Other tangible personal properties in the Philippines - P 3,000,000

Expenses:

 Funeral expenses incurred in the Philippines - P25,000

 Funeral expenses incurred abroad - P 10,000

 Legal fees - P5,000

 Medical expenses – 2 months before decedent’s death - P 50,000

 Losses on the property located abroad - P 40,000

 Claims against the estate - P25,000

The gross estate on the estate of MARKZ DALIMOTZ is

d). P 9,000,000

Question 35

MARKZ DELIMOTZ, a German residing in Munich, Germany had the following data at the time of his
death:

Properties:

 Real property located in Osaka, Japan - P2,400,000

 Lot situated in Davao City - P 6,000,000

 Other tangible personal properties in the Philippines - P 3,000,000

Expenses:

 Funeral expenses incurred in the Philippines - P25,000

 Funeral expenses incurred abroad - P 10,000

 Legal fees - P5,000

 Medical expenses – 2 months before decedent’s death - P 50,000

 Losses on the property located abroad - P 40,000

 Claims against the estate - P25,000

How much is the estate tax due ?

a). P 508,500

Question 36

BHEN TONG, a sole proprietor is engaged in the distribution of various essential consumer products.
During the year, he sold his vacant lot located in Iloilo valued at P2,800,000 to his long time buddy,
DANIEL WONG, for only P1,700,000. The property was purchased by the former two years ago at a cost
of P1,400,000.

How much is the total donor’s tax ?

d). P 0

Question 37

1 / 1 pts

BHEN TONG, a sole proprietor is engaged in the distribution of various essential consumer products.
During the year, he sold his vacant lot located in Iloilo valued at P2,800,000 to his long time buddy,
DANIEL WONG, for only P1,700,000. The property was purchased by the former two years ago at a cost
of P1,400,000.

How much is the capital gains tax ?

b). P 168,000
Question 38

BHEN TONG, a sole proprietor is engaged in the distribution of various essential consumer products.
During the year, he sold his vacant lot located in Iloilo valued at P2,800,000 to his long time buddy,
DANIEL WONG, for only P1,700,000. The property was purchased by the former two years ago at a cost
of P1,400,000.

Assuming the land sold is classified as an ordinary assets, how much is the donor’s tax due ?

a). P 51,000

Question 39

1 / 1 pts

BHEN TONG, a sole proprietor is engaged in the distribution of various essential consumer products.
During the year, he sold his vacant lot located in Iloilo valued at P2,800,000 to his long time buddy,
DANIEL WONG, for only P1,700,000. The property was purchased by the former two years ago at a cost
of P1,400,000.

Assuming the land sold is classified as an ordinary assets, how much is the capital gains tax due, if any ?

d). P 0

Question 40

A donor gave the following donations during 2019:

 Jan 30 - land located in the Philippines valued at P2,500,000 to his uncle subject to the
condition that the latter will pay the donor’s tax due and unpaid mortgage amounting to
P750,000.

 Nov 30 - building in the USA valued at P4,800,000 to his sister. Donor’s tax paid in the USA was
P480,000.

How much shall be the donor’s tax payable on the January 30 donation, if any ?

b). P 90,000

Question 41

A donor gave the following donations during 2019:

 Jan 30 - land located in the Philippines valued at P2,500,000 to his uncle subject to the
condition that the latter will pay the donor’s tax due and unpaid mortgage amounting to
P750,000.
  Nov 30 - building in the USA valued at P4,800,000 to his sister. Donor’s tax paid in the USA was
P480,000.

How much shall be the donor’s tax payable on the November 30 donation, if any ?

c). P 10,992

Question 42

The records of the estate of a citizen – decedent who died in 2019 is as follows:

 Land inherited from mother during marriage, two years and 5 months before death, valued at
P17,000,000 when inherited - P 25,000,000

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

 Other personal property acquired during marriage - P 5,000,000

 Deductions claimed:

a). Casualty losses - P 600,000

b). Unpaid taxes - P 400,000

c). Claims against the estate - P 500,000

d). Funeral expenses - P 400,000

e). Medical expenses incurred and paid within 1 year before death - P 200,000

f). Judicial expenses - P 200,000

Under the Absolute Community of Property, how much is the exclusive property of the decedent ?

b). P 15,140,000

Question 43

The records of the estate of a citizen – decedent who died in 2019 is as follows:

 Land inherited from mother during marriage, two years and 5 months before death, valued at
P17,000,000 when inherited - P 25,000,000

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

 Other personal property acquired during marriage - P 5,000,000

 Deductions claimed:

a). Casualty losses - P 600,000

c). Claims against the estate - P 500,000

d). Funeral expenses - P 400,000

e). Medical expenses incurred and paid within 1 year before death - P 200,000

f). Judicial expenses - P 200,000

Under the Absolute Community of Property, how much is the net community property ?

a). P 18,500,000

Question 44

The records of the estate of a citizen – decedent who died in 2019 is as follows:

 Land inherited from mother during marriage, two years and 5 months before death, valued at
P17,000,000 when inherited - P 25,000,000

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

 Other personal property acquired during marriage - P 5,000,000

 Deductions claimed:

a). Casualty losses - P 600,000

b). Unpaid taxes - P 400,000

c). Claims against the estate - P 500,000

d). Funeral expenses - P 400,000

e). Medical expenses incurred and paid within 1 year before death - P 200,000

f). Judicial expenses - P 200,000

Under the Absolute Community of Property, how much is the share of the surviving spouse?

b). P 9,250,000

Question 45

The records of the estate of a citizen – decedent who died in 2019 is as follows:

 Land inherited from mother during marriage, two years and 5 months before death, valued at
P17,000,000 when inherited - P 25,000,000

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

 Deductions claimed:

a). Casualty losses - P 600,000

b). Unpaid taxes - P 400,000

c). Claims against the estate - P 500,000

d). Funeral expenses - P 400,000

e). Medical expenses incurred and paid within 1 year before death - P 200,000

f). Judicial expenses - P 200,000

How much is the amount of the vanishing deduction ?

c). P 9,860,000

Question 46

The records of the estate of a citizen – decedent who died in 2019 is as follows:

 Land inherited from mother during marriage, two years and 5 months before death, valued at
P17,000,000 when inherited - P 25,000,000

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

 Other personal property acquired during marriage - P 5,000,000

 Deductions claimed:

a). Casualty losses - P 600,000

b). Unpaid taxes - P 400,000

c). Claims against the estate - P 500,000

d). Funeral expenses - P 400,000

e). Medical expenses incurred and paid within 1 year before death - P 200,000

f). Judicial expenses - P 200,000

Under the Absolute Community of Property, how much is the net taxable estate ?

d). P 19,390,000
Question 47

MARIAH, a resident of Canada and a Canadian citizen as well, died last June 30, 2021 leaving the
properties shown below:

 Land in Cebu – P18,800,000

 Family home – P 12,500,000

 Rest house in Canada – P 8,700,000

 Jewelries received from a friend a week before her death – P6,000,000

 Vehicles – P 5,000,000

The descendants of MARIAH claimed the following deductions:

 Funeral expenses – P 2,800,000

 Medical expenses – P 1,750,000

 Claims against insolvent person, Ebby – P 6,000,000

 Losses – P 1,000,000

 Standard deductions – P 5,000,000

What is the amount of the gross estate ?

b). P 48,300,000

Question 48

MARIAH, a resident of Canada and a Canadian citizen as well, died last June 30, 2021 leaving the
properties shown below:

 Land in Cebu – P18,800,000

 Family home – P 12,500,000

 Rest house in Canada – P 8,700,000

 Jewelries received from a friend a week before her death – P6,000,000

 Vehicles – P 5,000,000

The descendants of MARIAH claimed the following deductions:

 Funeral expenses – P 2,800,000

 Medical expenses – P 1,750,000

 Claims against insolvent person, Ebby – P 6,000,000

 Standard deductions – P 5,000,000

What is the amount of the total LIT to be deducted from the gross estate ?

d). P 6,355,263

Question 49

MARIAH, a resident of Canada and a Canadian citizen as well, died last June 30, 2021 leaving the
properties shown below:

 Land in Cebu – P18,800,000

 Family home – P 12,500,000

 Rest house in Canada – P 8,700,000

 Jewelries received from a friend a week before her death – P6,000,000

 Vehicles – P 5,000,000

The descendants of MARIAH claimed the following deductions:

 Funeral expenses – P 2,800,000

 Medical expenses – P 1,750,000

 Claims against insolvent person, Ebby – P 6,000,000

 Losses – P 1,000,000

 Standard deductions – P 5,000,000

What is the amount of the vanishing deductions ?

b). P 5,210,526

Question 50

MARIAH, a resident of Canada and a Canadian citizen as well, died last June 30, 2021 leaving the
properties shown below:

 Land in Cebu – P18,800,000

 Family home – P 12,500,000

 Rest house in Canada – P 8,700,000

 Jewelries received from a friend a week before her death – P6,000,000

The descendants of MARIAH claimed the following deductions:

 Funeral expenses – P 2,800,000

 Medical expenses – P 1,750,000

 Claims against insolvent person, Ebby – P 6,000,000

 Losses – P 1,000,000

 Standard deductions – P 5,000,000

What is the amount of the net taxable estate ?

a). P 36,234,211