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Practice Set 1

The document contains sample exam questions for a Business Tax course. The questions cover topics like estate tax, donor's tax, gifts, deductions, conjugal and exclusive properties under the Community Property Law and the Absolute Community Property system. Computations are required to determine taxable amounts, tax due, gross estate, conjugal properties and more. Fifteen questions in total are provided with varying fact patterns about donations, inheritance, residency status, property locations and values.

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Shiela Mae Bautista
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967 views

Practice Set 1

The document contains sample exam questions for a Business Tax course. The questions cover topics like estate tax, donor's tax, gifts, deductions, conjugal and exclusive properties under the Community Property Law and the Absolute Community Property system. Computations are required to determine taxable amounts, tax due, gross estate, conjugal properties and more. Fifteen questions in total are provided with varying fact patterns about donations, inheritance, residency status, property locations and values.

Uploaded by

Shiela Mae Bautista
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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MINDANAO STATE UNIVERSITY - GENERAL SANTOS CITY

DEPARTMENT OF ACCOUNTANCY

ACT184: BUSINESS TAX

EXERCISES:

1. Mr. Juan, resident decedent, married, died, leaving the following properties:

Real and personal properties acquired during marriage P3,000,000

House and lot inherited from his father 1 year and 3

months before he died (FMV: 1,500,000) used as

decedent’s family home 2,000,000

Car purchased with cash received as gift from his

mother during the year he died 500,000

Cash (inclusive of P500,000 receive as inheritance

from the father) 1,500,000

The following obligations and expenses were also made available:

Claims against conjugal properties P600,000

Unpaid mortgage on the inherited house and lot 100,000

(original mortgage was for P600,000)

How much is the total vanishing deductions?

The next three questions are based on the following data:

Juana, a Filipina made the following donations

A. To Nick, a land worth P450,000 in Manila

B. To Rosalee, jewelry worth P100,000 in Japan

C. To Adalind, PLDT shares amounting to P150,000

D. To Renard, a building in Italy P1,600,000 mortgage fir P50,000 assumed by the donee.

E. To Drew, land in Davao worth P300,000

F. P300,000 cash, PNB New York to Hank

G. P200,000 receivable, 50% condoned by Juana.

She has also transferred the following properties:

Selling Price FMV


Car, Makati P200,000 P300,000

Car, Malaysia 300,000 200,000

Rest house, Tagatay 1,000,000 2,000,000

Rest house, Malaysia 1,500,000 2,500,000

2. How much is the gross gift?

3. If she is a non-resident Alien, her gross gift is?

4. If she is a non-resident Alien, and there is reciprocity law, her gross gift is?

5. Kano, a non-resident American, died on May 1, 2019 leaving the following properties:

Exclusive properties, Philippines P5,600,000 Conjugal properties,


Philippines 4,200,000

Conjugal properties, Abroad 18,200,000

Claims against insolvent person 1,000,000

Funeral Expenses 200,000

Judicial Expenses 850,000

Claims against the estate 1,500,000

Losses: occuring 8 mos. After death due to fire 1,700,000

Donation mortis causa to Makati City Hall 1,800,000

Family home, located Abroad 10,000,000

The taxable net estate is?

The next two questions are based on the following:

A citizen-decedent died on 2019 with the following data:

Philippines Abroad

Gross estate P14,200,000 P4,400,000

Allowable Deduction 6,400,000 2,200,000

(excluding special deduction)

Estate tax paid 150,000

6. How much is the estate tax payable in the Philippines assuming the decedent is a non-resident
citizen?

7. How much is the estate tax payable in the Philippines assuming the decedent is a non-resident
alien?

The next three questions are based on the following:

Mr and Mrs Palahatag, made the following donations during 2019:


January 25: To Oliver, their legitimate son, on account of marriage Last January 20, 2016,
car worth P400,000, with P200,000 unpaid mortgage, 1/2 assumed by Oliver.

May 31: To John, brother of Mr. Palahatag, his capital property worth P200,000 on account of
marriage 6 months ago with a condition that the donee will pay the donor’s tax thereon.

July 15: To Felicity, daughter of Mrs. Palahatag by former marriage, on account of her marriage
12 mos. ago, Mrs. Palahatag’s paraphernal property worth 100,000

August 20: Conjugal car of the couple worth P400,000, with P200,000 unpaid mortgage, 1/2 assumed
by the donee and P500,000 worth of land of their four sons on account of their graduation,
20% of which was owned by their closest friend, Hisssss, who agreed to donate his share through
a public document.

8. The gift tax payable of Mr. Palahatag as of May 31

9. The gift taxes payable of Mr. and Mrs. Palahatag on August 20

10. The gift tax payable of Hisssss on August 20

11. Julio made the following donation:

PHILPINNES USA UK ITALY

Gross Gift P750,000 P500,000 P250,000 P500,000

Deductions 250,000 200,000 150,000 150,000

Tax paid 25,000 12,000 10,000

The donor’s tax still due and payable is?

The next four questions are based on the following questions:

Mr. Juan died living the following properties:

Rest house in Cebu, acquired before marriage P6,000,000

Income from rest house in Cebu 600,000

Condominium in Davao, brought to marriage by wife 3,600,000

Income from condominium in Davao 360,000

Town house in QC, acquired during marriage 10,500,000

Income from town house in QC 1,050,000

Car, inherited by wife during marriage

(the decedent provided in his will that it

shall form part of the Common properties) 1,300,000

Jewelry, acquired during marriage for exclusive


use of the wife 200,000

12. How much is the conjugal properties under CPG?

13. How much is the gross estate under CPG?

14. How much is the community property under ACP?

15. How much is the gross estate under ACP?

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