FA #1: Introduction to transfer taxes

1. Which is subject to transfer tax? -Donation

2. A transfer for full or adequate consideration is subject to? –Income tax
3. Taxpayer of donor’s tax? –donor
4. Tax payer of estate tax –estate
5. Rationalization of transfer taxation? –Tax evasion, state partnership, tax recoupment
6. Transfer tax imposed to partially recover future reduction in income tax? –Tax
recoupment theory
7. The government enforces the transfer of property by donation and succession? –Benefit
received theory
8. The transfer of wealth should be taxed so that it will benefit the whole society? –Wealth
redistribution
9. Wealth accumulation could not be possible without the government indirect
participation? –State partnership theory
10. Transfer tax on donation mortis causa applies to? –Juridical persons
11. Transfer tax on donation inter vivos applies to? –Natural and juridical persons

FA #2 CONCEPT OF SUCCESSION
1. It is a mode of gratuitous acquisition of property by the death of decedent. Succession
2. The donor in a donation mortis causa. DEAD
3. It is a succession with the absence of a will. INTESTATE
4. It is succession by will and by law. MIXED
5. It is a written document which sets forth how the decedent’s property will be
distributed. WILL
6. They are the successor in the interest of the decedent. HEIR
7. Who is not a compulsory heir? BROTHER
8. This is a person appointed by the court to manage the distribution of estate.
ADMINISTRATOR
9. The person handpicked by the decedent to implement will. EXECUTOR
10. Succession is a mode of acquisition of property similar to donation. TRUE
11. The right of succession is transmitted from the moment of death of the decedent. FALSE
12. A person who died with a will is said to be estate. TRUE
13. In intestate succession, the surviving spouse is treated as a legitimate child qualified for
a share while illegitimate child are allowed half-share each. TRUE
14. Only testamentary disposition are subject to estate tax. FALSE
15. Testamentary, intestate or mixed is subject to estate tax. TRUE
FA #3 GROSS ESTATE
1. The list of properties of the decedent existing at the point of death must be established in
determining gross estate. TRUE
2. Gross estate consists of all real properties and tangible properties wherever situated, at the
point of death. FALSE
3. The gross estate of a NRA includes only tangible properties wherever situated. FALSE
4. The gross estate of a NRA includes only tangible properties situated in the PH. FALSE
5. Properties owned by the decedent which are exempted by law are initially included in gross
estate, but are removed by way of deduction from gross estate. FALSE
6. Taxable transfers consists of properties passed to other persons before death but are still owned
by the decedent at the point of death. TRUE
7. Non-listed common stocks are valued at their book value. TRUE
8. Transfer inter vivos made before death are included in gross estate. FALSE
9. Income earned after death is included in gross estate. FALSE
10. The payment obligations and expenses after death is added back to the amount of gross estate.
TRUE
11. Properties held by the decedent as a trustee must be included in gross estate. FALSE
12. Properties held by the decedent must be transmitted to an heir in accordance with the desire of
a predecessor are excluded from gross estate. TRUE
13. The proceeds of an irrevocable life insurance is included in gross estate. FALSE
14. Properties held by the decedent as fiduciary heir are included un gross estate. FALSE
15. The proceeds of life insurance which is revocably designated must be included in gross estate.
TRUE
16. The proceeds of life insurance is included in gross estate if the beneficiary is the estate or
executor. TRUE
17. The separate property of the surviving spouse is excluded from the gross estate. TRUE
18. Transfers made for adequate consideration are excluded from the gross estate. TRUE
19. The merger of the usufruct in the owner of the naked title Is a transfer excluded from gross
estate. TRUE
20. The gross estate includes only the separate properties of the decedent. FALSE
21. The proceeds of the group insurance is included in the gross estate. FALSE
22. The proceeds of GSIS policy SSS benefits are included in the gross estate. FALSE
23. Transfers in contemplation of death are included in gross estate. TRUE
24. If the fair value of property transferred mortis causa for an inadequate consideration declined
below the mount of the consideration at the date of death, no amount is included in gross
estate. TRUE
25. Revocable transfers ad conditional transfers are included in gross estate at the fair value of the
property at the date of their transfer to the transferees. TRUE
26. Properties passing under special power of appointment are included in gross estate. FALSE
 27. If a consideration I paid by the transferee in a taxable transfer, the amount to include in gross
estate shall be the excess of the fair value of the property at the date of death over the
consideration given. TRUE
28. Who has reciprocity exemption? NRA
29. If inventory-taking property is conducted after the death of the decedent, which is deducted
from the inventory list? INCOME ACCRUING AFTER DEATH
30. Which of these is subject to tax? TRANSER MORTUS CAUSE LESS THAN FULL

FA #4: GROSS INCOME COMPUTATION

1. Bacleito had the following properties with their respective fair values in his possession at the
date of his death:
a. Agricultural land held in trust 200,000
b. Car registered to brother’s name 300,000
c. Motorcycle 80,000
d. Residential lot 900,000
e. Other personal properties 70,000
GROSS ESTATE P1,050,000.00

2. The heirs of Mr. Masipag identified a total P12,000,000 in his properties existing at the date
of his death. A total of 500,000 were used during his wake up interment. His heirs also used
400,000 to pay obligations of Masipag. An investment in the estate of Mr. Masipag also
earned 50,000 in dividends which heirs reserved for payment of his estate tax. What is the
gross estate?

GROSS ESTATE: P12,000,000.00

3. A resident decedent died leaving the following properties:

Orchard, held as usufruct 1,200,000
A borrowed motorcycle 80,000
Cash proceeds of his banks 500,000
A ranch acquired in 1990 1,000,000
Cattles 2,500,000
House 600,000
Lot 800,000
GROSS ESTATE P4,400,000

4. A resident Japanese decedent died leaving the following properties:

A house and lot in Japan 2,000,000
 Bank deposit in PH 800,000
A car in PH 1,000,000
Residential lot in USA 1,500,000
GROSS ESTATE P5,300,000

5. A citizen decedent died leaving the following:

Properties inherited from father 1,200,000
Properties, donated by the brother 800,000
Cash, from his salary 400,000
Cash, income of properties before death 200,000
Receivables, income of properties after death 100,000
GROSS ESTATE 2,600,000

6. A NRA decedent died leaving the following:

Building in Korea 8,000,000
A car in Hongkong 2,000,000
Shares of stock in Malaysia 4,000,000
Cash in PH banks 800,000
Investment in bonds of domestic corp 400,000
GROSS ESTATE P1,200,000.00

7. A NRA decedent had the following interest at the point of death:

Interest in a business partnership organized abroad 300,000
Shares in foreign corporation 75% in the PH 400,000
Shares of a foreign corporation in PH stock exchange market 800,000
Claims from resident debtors 1,200,000
GROSS ESTATE P2,000,000.00

8. The following relates to the withdrawals from the account of a decedent who died January
8,2019:
Jan 7, 2019 400,000
Jan 9, 2019 500,000
Jan 10, 2020 500,000

Assuming bank is duly notified of his death.

GROSS ESTATE P500,000.00

9. Ms Katie died bankrupt. She had the following properties and obligations at the date of her
death:
Cash 200,000
Agricultural land 3,000,000
Debts and obligations 8,000,000
 Family home 2,000,000
GROSS ESTATE P5,200,000.00

10. Mrs. Candida dies. In her last will and testament, he indicted the following:
House and lot to adopted and only son 5,000,000
Land, to a public school 1,000,000
Non-profit foundation 500,000
GROSS ESTATE P6,000,000.00

11. Mr. Dino Jones died leaving the following properties:

Car purchased using GSIS retirement benefit 500,000
Interest in a joint venture business 3,000,000
House and lot, separate property of wife 2,000,000
Proceeds of insurance (revocable) 1,500,000
GROSS ESTATE P4,500,000.00

12. An inventory total of properties of Mrs. Tina and her widower is shown below:
Separate property of mrs. Taray 6,000,000
Separate property of mr. taray 1,500,000
Family business 2,000,000
Other properties owned jointly 3,000,000
GROSS ESTATE P11,000,000.00

FA#5
1. The spouses can stipulate the conjugal partnership of gains as their property regimes
even in the current time. TRUE
2. The property regime of the spouses may be agreed upon during the marriage. TRUE
3. Properties for exclusive personal use of either spouses are exclusive properties under
absolute community of properties. TRUE
4. All fruits, accruing before or after the marriage, are conjugal properties. FALSE
5. Fruits accruing from common properties are common properties under conjugal
partnership of gains. TRUE
6. Fruits accruing from separate properties are common properties under conjugal
partnership of gains. TRUE
7. All fruits before the marriage are conjugal properties. FALSE
8. All fruits during the marriage are communal properties. FALSE
9. Real properties are common properties under absolute community of properties.
FALSE
 10. Properties received by way of gifts are exclusive properties. FALSE
11. Properties received by way of inheritance are exclusive properties. FALSE
12. All properties brought into the marriage are separate under the conjugal partnership of
gains. TRUE
13. The properties of a spouse with a descendant from a prior marriage are exclusive
properties. FALSE
14. The fruit of inherited properties are exclusive under absolute community of Properties.
TRUE
15. The fruit of donated properties are exclusive properties under conjugal partnership of
gains. FALSE
16. The fruits of labor of either spouse are exclusive under the absolute community of
property. FALSE
17. The gross estate of a decedent includes his separate properties and their common
properties with his surviving spouse. TRUE
18. In default of an agreement between the spouses, marriages celebrated before August
3, 1988 is presumed under the conjugal partnership of gains. TRUE
19. Issues of property regime are irrelevant to a single decedent. TRUE
20. In taking inventory, properties are generally presumed common unless proven as
exclusive of either spouse. TRUE
21. The proceeds of separate property sold during the marriage can become a conjugal
property. FALSE
22. The proceeds of separate property sold during the marriage is always a separate
property under absolute community of property. TRUE
23. Jewelry is generally considered community property. TRUE
24. Jewelry inherited during the marriage is exclusive property. TRUE
25. The sale of a separate property may produce a separate property and a conjugal
property. TRUE
26. Statement 1: Under absolute community of property, properties are presumed
community unless proven otherwise. Statement 2: Under conjugal partnership of gains,
properties are presumed conjugal unless proven otherwise. Which is correct? BOTH
STATEMENT

FA#6
1. Which of these donations or inheritance is a common property? *

Donations designated by the donor for the wife

A devise to the husband

A donation designated by the donor for the husband and the wife
An inheritance from the mother of the wife

2. Which is not a common property? *

Revocable donation to both spouses

Irrevocable donation in trust for both spouses

Direct and irrevocable donation for both

All of these Spouses

3. Which is not a separate property under conjugal partnership? *

Professional income of the husband

Rental income from separate properties

Income of common properties

All of these

4. Which is incorrect regarding fruits of separate properties during the marriage? *

Exclusive under conjugal Partnership of gains

Exclusive under absolute community of property

Exclusive under absolute separation of property

None of these

5. Fruits accruing before the marriage are *

Common under conjugal partnership of gains

Common under absolute community of properties

Exclusive under absolute community of properties

Common under conjugal partnership of gains and Exclusive under absolute community of
properties

6. The income of donated properties before marriage are *

Exclusive properties under conjugal partnership

Exclusive under absolute community of property

Common properties under conjugal partnership of gains

Exclusive under absolute community of property and Common properties under conjugal
partnership of gains

7. Property inheritance during the marriage is *

Exclusive under conjugal partnership

Exclusive under absolute community of property

Common properties under conjugal partnership of gains

Exclusive under conjugal partnership and Exclusive under absolute community of property

8. The property inheritance before the marriage is *

Separate property under conjugal partnership

Separate property under absolute community of property

Common property under absolute community of property

Common property under absolute community of property and separate property under conjugal
partnership

9. Which is incorrect under the absolute community of property? *

JeweIry received as an inheritance during marriage is an exclusive property.

Jewelry received as donation before marriage is a common property.

Jewelry acquired from income of separate property is an exclusive property.

None of these

10. The income of properties acquired from the personal hard work of either spouse is *

Exclusive under absolute separation of properties

Common properties under absolute community of property

Exclusive under conjugal partnership

Exclusive under absolute separation of properties and Common properties under absolute
community of property

11. The gain on sale of a separate property during the marriage is *
Separate property under conjugal partnership of gains

Separate property under absolute community of property

Common property under conjugal partnership of gains

Aand B

12. The gain on sale of common properties is *

Exclusive under conjugal partnership of gains

Common under absolute separation of property

Common under absolute community of property

None of these

13. Which is a paraphernal property under absolute community of property? *

Property inherited by the husband

Property inherited by the wife

Property earned from separate properties of the husband

Property from the exercise of profession by the wife

14. Which is a paraphernal property under the conjugal partnership of gains? *

Property brought into the marriage by the wife

Income of properties donated to the wife during the marriage

Income from the separate industry of the husband

Income from the separate industry of the wife

15. Which is a capital property under the conjugal partnership of gains? *

Property brought into the marriage by the wife

Properties inherited by the husband

Fruits of properties donated to the husband

Properties for exclusive use of the husband

16. Which is a capital property under the absolute community of property? *

Properties before marriage of the wife with a descendant in a prior marriage

Fruits of separate property of the wife

Properties for exclusive personal use of the husband

Compensation income of the husband

17. Which is excluded in gross estate? *

Separate property of the decedent

Common property of the spouses

Separate property of the surviving spouse

Separate property of the decedent and Common property of the spouses

18. Which is excluded in the gross estate of a deceased husband under the absolute
community of property? *

Fruits of properties inherited by the wife during marriage

Fruits of common properties during the marriage

Fruits of properties of the spouses before their marriage

Properties inherited by the husband

19. Which is excluded in the gross estate of a deceased wife under the conjugal
partnership of gains? *

Business income of the husband

Professional income of the wife

Property received by way of inheritance by the wife

Property brought into the marriage by the husband

20. Which is excluded in the gross estate of the husband under the conjugal Partnership
of gains? *

Properties inherited by the wife

Properties brought into the marriage by the husband

Income from properties inherited by the wife

Properties acquired by the wife from her own labor

FA#7
1. 2,500,000
2. 500,000