Chapter 3 Deductions From The Gross Estate Part 5
Chapter 3 Deductions From The Gross Estate Part 5
Chapter 3 Deductions From The Gross Estate Part 5
Statement 1: The P5,000,000 standard deduction for estate tax purposes is a short-cut, legal
mechanism to further exempt the less privileged estate and heirs from the tax burden.
Statement 2: The BIR may examine the bank deposit of a decedent for the purpose of determining his
gross estate without violating the Bank Secrecy Law.
Family Home
32. 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 P10,000,000, such amount is not subject to estate tax.
a. Statements 1 and 2 are correct
b. Only statement 2 is correct
c. Only statement 2 is correct
d. Statements 1 and 2 are incorrect
34. A resident citizen had family home in the Philippines. He worked abroad and was temporarily absent
from his family home when he died. Which of the following statements is correct?
a. The decedent would not be allowed family home deduction because he was abroad when he died.
b. The decedent would not be allowed family home deduction because he was a nonresident citizen
when he died.
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.
d. The decedent would be allowed family home because all decedents were allowed family home
deduction.
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b. Any amount received by the heirs from the decedent's employer as a consequence of the death of the
decedent-employee in accordance with Republic Act 4917 shall be deductible from the gross estate of
the decedent.
c. Both a and b
đ. Neither a nor b
36. A decedent has one year left to complete 30 years of continuous service with his employer when he
died. His only heir received P1,500,000 as benefit under RA 4917. What should be the amount to be
included in the gross estate?
a. P1,500,000
b. Р500,000
c. P1,000,000
d. P0
37. Based on the preceding problem, what amount should be included as part of deductions from gross
estate?
a. P1,500,000
b. P500,000
c. P1,000,000
d. P0
The country where the decedent is a citizen and resident does not impose transfer tax on transmission of
intangibles of Filipinos not residing therein. The taxable net estatę in the Philippines is
a. P3,800,000
b. P4,280,000
c. 4,780,000
d. P5,280,000
40. A nonresident alien died on March 10, 2018 leaving the following properties and deductions
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Shares, domestic corporation P500,000
Shares, foreign corporation 500,000
Tangible personal property 1,500,000
Deductible losses, indebtedness and taxes 500,000
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