Choose the letter of the correct answer.
Transfer Taxes
1.
Which of the following statements is false? Transfer tax is
a. Imposed upon gratuitous transfer of property
b. Of two kinds: estate tax and donors' tax
c. Classified as national tax
d. None of the above
2.
Statement 1: Gratuitous transfer or donation is subject to transfer
t ransfer tax.
Statement 2: A donation which takes effect at the time of death of the donor is a donation mortis
causa subject to estate while a donation which takes effect during the lifetime of both the donor
and the donee is a donation inter-vivos subject to donor's tax.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
3.
d. Both statements are incorrect
Statement 1: A sale is a form of transfer transaction that requires payment of transfer tax.
Statement 2: Transfer tax accrues at the time of transfer of the decedent's property or rights to the
heir.
a. Only statement 1 is correct
b. Only statement 2 is correct
c.
Both statements are correct
d. Both statements are incorrect
4.
Statement 1: The rights to the succession are transmitted from the moment of death of the
decedent, notwithstanding the postponement of the actual possession or enjoyment of the
t he estate
by the beneficiary.
Statement 2: The heirs succeed immediately to all the property of the deceased ancestor at the
moment of death as completely as if the ancestor had executed and delivered to them a deed for
the same before his death.
a. Only statement 1 is correct
b. Only statement 2 is correct
c.
Both statements are correct
d. Both statements are incorrect
5.
Mortis causa transfer of property is effected:
a. When the property is received by the heir.
b. When the court awarded the ownership of property
particular heir.
c. Upon the death of the decedent.
decede nt.
d. Upon payment of estate tax.
6.
The subject matter or object of transfer taxes is
a. Right to transmit
b. Decedent
c. Properties of the decedent
d. Beneficiaries
7.
Justification for the imposition of transfer tax.
a. Redistribution of wealth theory
b. Benefit received theory
c. State partnership theory
d. All of the above
8.
Inheritance received is construed as unequal distribution of wealth resulting to the imposition of
estate tax describes:
a. Redistribution of wealth theory
c. state partnership theory
b. Benefit-received theory
d. ability to pay theory
9.
The tax imposed on the right to transmit property death is known as:
c. Business tax
a. Donor’s tax
d. Income tax
b. Estate tax
10.
The impose on the transfer of property without consideration between two or more persons who
are living at the time the transfer is made.
a. Doner’s tax
b. Estate tax
11.
c. Business tax
d. Income tax
Estate tax is
a. A property tax because it is imposed on the property transmitted by the decedent to his
heirs.
b. An indirect tax because the burden of paying the tax is shifted to the executor or any of the
heirs of the decedent.
c.
An excise tax because the object of which is the shifting of economic benefits and
enjoyment of the property from the dead
de ad to the living
d. A poll tax because it is also imposed on residents of the Philippines whether Filipino citizens
or not
12.
Which among the following statements is correct?
a. Estate taxation is governed by the statue in force at the time of death of the decedent.
b. Estate tax accrues as of the death of the decedent.
c.
Succession takes place and the right of the State to tax the privilege to transmit the estate
vests instantly upon death.
d. All of the above
13.
Which among the following statements is correct?
a. Estate tax is an excise tax. It is a tax on the right to transfer property at death and on
certain transfers which are made by the
t he law the equivalent if testamentary disposition.
b. Excise tax is an ad volarem tax. It is assessed based on the net value of the estate
transferred.
c.
Upon effectivity of the TRAIN Law, estate tax is proportional tax. It is no longer based on a
graduated tax rate but to fixed rate of 6% on the net taxable estate of the decedent.
d. Estate tax is a specific tax
14.
The taxpayer in estate tax is:
a.
The decedent
b. The estate as juridical entity
c.
The heirs of succession
d. The administrator or executor
15.
Estate tax accrues from:
a.
The moment of death of the decedent
b. The moment the notice of death is filed
c. The moment the estate tax return is filed
d. The moment the properties are delivered to the heirs
16.
Who has the personal liability to pay estate tax?
t ax?
a. The decedent
b. The estate as a juridical entity
c. The heirs or successors
d. The administrator or executor
17.
It is a well settled rule that estate taxation is governed by the statute in force at the time of:
a. Creation of the last will testament or death of the decedent in ccase
ase of intestate succession
b. Death of the decedent
c.
Filing of estate tax return
d. Either letter "b" or "c" whichever will
w ill result to higher estate tax liability
18.
An executor or administrator, after paying the estate tax, and to escape a future liability for a
deficiency estate tax, must secure a written discharge from personal liability from:
a. The heirs.
b. The Commissioner of Internal Revenue.
c. The court where the estate was being settled.
d. Need not secure a written discharge as long as he has a receipt on payment of the excise
tax.
Concepts of Succession
19. It is a mode of acquisition by virtue of which, the property, rights and obligations, to the extent of
the value of the inheritance, of a person are transmitted through his death to another either by his
will or by operation of law.
a. Succession
b. Donation
20.
c.
Prescription
d. Exchanges
Statement 1: decedent is the general term
t erm applied to a person whose property is transmitted
through succession, whether or not he left a will.
Statement 2: An heir is a person called to succession either by provision of a will or by operation of
law.
a.
Only statement 1 is correct
b. Only statement 2 is correct
c.
Both statements are correct
d. Both statements are incorrect
21.
Which statement is false about succession?
a. The successor inherits all the transmissible property of a decedent
decede nt including his liabilities.
b. The successor can be made liable for the
t he obligation of the decedent beyond the value of
the asset he received.
In succession, fruits and credits maturing after the
t he death of the decedent pass to the heirs
c.
even if they were not subject to estate tax.
d. In succession, the successor can refuse the inheritance.
22.
Which of the following could leally effect transfer of properties through succession?
I.
II.
III.
a.
By virtue of a will
By operations of law
By onerous transfer
I only
b. I and II only
23.
I and III only
d. I, II and III
An act whereby a person
per son is permitted, with the formalities prescribed by law, to control to a certain
degree the disposition of his estate, to take effect after his death.
a.
Contract
b. Trust
24.
c.
c.
Will
d. Legacy
___________is
__________
_is a written will which must be entirely written, dated, signed by the hand of the
testator himself. It subject to no other form and it may be made in or out the Philippines and need
not be witnessed.
a.
Ordinary will
b. Notarial will
25.
Holographic will
d. Codicil
Statement 1: the making of a will is strictly a personal act. It cannot be left in whole or in part o
off the
discretion of a third person, or accomplished through the instrumentality of an agent or attorney.
Statement 2: the burden of proof that the testator was not of sound mind at the time of making his
dispositions is on the person who opposes the probate of the will; but if the testator, one month, or
less, before making his will was publicly known to be insane, the person who maintains the validity
of the will must prove that the testator made it during a lucid interval.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect
26.
c.
The persons prohibited by the law to make a will are:
I.
Those below 18 years of age
II.
Those who are not of sound mind at the time of its execution
a.
I only
b. II only
27.
28.
The following are the elements of succession, except:
exce pt:
a. decedent
b. estate
Devisee
b. Legatee
c. Mixed succession
d. Ordinary succession
c. Legacy
d. Bequest
c.
Heir
d. Successor
A person who inherits specific real property thru a will:
a. Devisee
b. Legatee
32.
c. heir
d. executor
A person who inherits specific personal property thru a will:
a.
31.
d. Neither I nor II
The portion of the decedent's estate which the law reserves to his compulsory heir is called:
a. Legitime
b. Free portion
30.
III Both I and II
Succession which results from the designation of an heir, made in a will executed in the form
prescribed by law is known as:
a. Legal or intestate succession
b. Testamentary succession
29.
c.
c. Heir
d. Successor
Which of the following is a valid will?
a.
That which reduces the legitime of compulsory heirs.
b. That which increase the share of one heir without impairing the legitime of the other heirs.
c. That which transfer the legitime of one heir to the other heir.
d. That which impair the legitime of compulsory heirs.
33.
Which of the following is not a compulsory heir?
a.
Legitimate children and descendants, with respect to their
t heir legitimate parents or ascendants
b. In default of letter "a", legitimate parents or ascendants, with respect to their legitimate
c.
children or descendants
Widow or widower
Relatives by affinity
Composition and Valuation of Gross Estate
34.
One of the following is subject to estate tax on properties situated within the P
Philippines
hilippines only
a. Resident citizen
b. Resident alien
c. Nonresident citizen
d. Nonresident alien
35.
The personal properties of a non-resident, not citizen of the Philippines, would not be
included in the gross estate if:
a. The intangible personal property in the Philippines
b. The intangible personal property is in the Philippines and the reciprocity clause of the
estate tax law applies
c. c. The tangible personal property is in the Philippines
P hilippines
d. The personal property is shares of stock of a domestic corporation 90% of whose business
is in the Philippines
P hilippines
36.
Statement 1: As a general
ge neral rule, the situs of tangible personal property is the place or country where
such is actually located at the time of the decedent's death.
Statement 2: The rule that
t hat the situs of intangible personal property is the domicile or residence of
the owner does not apply when the
t he property has a situs elsewhere.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect
37.
All of the following are considered intangible in the Philippines,
P hilippines, except:
a. Franchise which must be exercised in the Philippines
b. Shares, obligations or bonds issued by any corporation or sociedad anonima organized or
constituted in the Philippines in accordance with its laws
c. Shares, obligations or bonds by any foreign corporation 75% of the business of which is
located in the Philippines
d. Shares, obligations of bonds issued by any foreign corporation if such shares, obligations
or bonds have acquired a business situs in the Philippines;
38.
Which of the following item is considered situated outside the Philippines?
P hilippines?
a. Franchise in the name of the decedent which is exercised in the Philippines
P hilippines
b. Share of stock holdings of decedent in a foreign corporation whose business is 90% done
in the Philippines
c. Bond certificate issued by a domestic corporation owned by a non-resident decedent
d. Foreign currency deposited in bank outside the Philippines
39.
Shares are not deemed property within the Philippines when
a. The shares are issued by a domestic corporation
c orporation
b. The shares are issued by a foreign corporation with no business situs in the Philippines.
c. The shares are issued by a foreign corporation with 85% business in the Philippines.
d. The shares are issued by a corporation
cor poration organized under Philippine laws.
40.
The following are general rules on situs. Which one is not?
a. The situs of real property is the place or country where it is situated.
b. The situs of tangible personal property is the place or country where such is actually
located at the time of decedent's death.
c. The situs of intangible personal property is the place or country where such is actually
located at the time of the decedent's death.
d. The situs of intangible personal property is the domicile or residence
re sidence of the owner.
41.
Which is not a test of situs?
a. Residence of the debtor in case of accounts receivable.
b. Place of storage in case of
o f shares of stocks.
c. Location of depository bank in case of bank deposit.
d. Place of exercise in case of copyright.
42.
Statement 1: For estate tax computation, real estate shall be valued at fair market value at the
death of the decedent.
Statement 2: If zonal value is available at date of death, and this is higher than tthe
he fair market value
per assessor's listings of values, then the amount to be reported in the gross estate is the zonal
value.
a.
Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect
43.
Pedro March 1, 2018. The following data were available in connection with the property.
Assessed valued, six (6) months before death
Fair market value at the time of filing estate tax return on Feb. 28, 2019
Zonal value, March 1, 2018
P2,500,000
3,000,000
2,000,000
What would be the value of the piece of land in the gross estate?
a. P2,000,000
b. P2,500,000
c.
P3,000,000
d. P5,000,000
44.
A decedent left 10,000 PLDT shares. The shares were traded in the local stock exchange. At the time
of death, the following were available:
Fair market value
P400 per share
Mean between the highest and the lowest quotations
P500 per share
Book value
P350 per share
What was the value included in the decedent's gross estate?
a.
P3,500,000
b. P4,000,000
c. 5,000,000
d. Whichever was the highest among the fair market value, mean and book value
45.
Which property is valued using the book value?
a. Bonds being traded in the bond market
b. Annuity
c. Shares of stock not traded in the stock exchange
d. Usufruct
46.
Pedro died on Nov. 2, 2018, leaving the following properties:
Common stocks of Sunchamp Corporation (2,000 shares) – listed in the Philippine Stock
Exchange (highest - P40; lowest - P39).
Common stocks of AgriNurture Corporation (1,500 shares) - not listed in the stock exchange.
Cost - P50 per share; book value - P45 per share.
Preferred stocks of Greenergy Inc. (3,000 shares) - not listed in the stock exchange. Cost
P70 per share; book value - P60 per share; par value - P50 per share
Car (cost - P600,000; book value - P350,000; market value - P400,000)





Real properties (zonal value - PI 20,000;
20, 000; assessed value - P72,000)
The gross estate of Pedro is:
a. P816,500
b. P817,500
47.
c. P824,000
d. P846,000
Part of the estate left by A are preference shares of MERALCO. The shares are listed and traded in
the Philippine Stock Exchange. Which of the following rules of valuation is correct?
a. The preference shares will be valued using the arithmetic mean between the highest
and lowest quotation at the date nearest the date of death, if none is available on the
date of death itself.
b. The preference shares will be valued based on their book value.
c. The preference shares will be valued based on their par value.
d. The preference shares will be valued based on their fair market value as determined by
the Commissioner of Internal Revenue
48.
Ana, Filipina, died in Syria leaving the following properties:
House & Lot in Syria
Vacant Lot in Manila
Shares of stock in a domestic corp., 60% of the business
is located in the Philippines
Shares of stock in a foreign corp., 70% of the business
is located in the Philippines
Car in Manila
How much is the gross estate?
a. P2,000,000
b. P2,500,000
1,000,000
2,000,000
100,000
200,000
500,000
c. P2,600,000
d. P3,800,000
49.
Based on the preceding number, but assuming Ana is a non-resident alien, the gross estate is:
a. P2,000,000
c. P2,600,000
b. P2,500,000
d. P3,800,000
50.
Continuing the preceding number and the rule of reciprocity applies, the gross estate is:
a. P2,000,000
b. P2,500,000
51.
c. P2,600,000
d. P3,800,000
Following are properties in the gross estate with their fair market value:
House and Lot, family home in Quezon City
P1,500,000
Deposit in a foreign branch of a domestic bank
500,000
Shares of stock issued by a domestic corporation, certificate kept in the US
1,000,000
Pieces of jewelry
800,000
Receivable, debtor in Cebu
200,000
If the decedent was non-resident alien and there is reciprocity, property excluded from gross estate
is valued at
c. P700,000
a. P4,000,000
d. P200,000
b. P1,700,000
52.
A non-resident
alien Canada
left the following properties at the time of his death:
A. Bank deposit,
B. Bank deposit, BDO-Manila
C. Car in Quezon City
D. Investments in bonds, PLDT
E. Investments in stocks, IBM, USA
F. House and Lot, USA
The country of the non-resident alien does not impose a transfer or death tax of any character
with respect to intangible personal property of citizens of the Philippines not residing in that
foreign country. What properties will be included in the Philippine ross estate of the non-resident
alien decedent?
a. All the properties above
b.
Properties
C, and D
c. Property
C B,
only
d. Properties A and C
53.
54.
Using the same data in the preceding
pre ceding number, assuming the decedent is a resident alien, and his
country does not impose transfer taxes to Filipino not residing therein, the Philippine gross estate
should include:
a. All the properties above
b. Property B, C and D
c. Property C only
d. Properties A and C
Which of the following shall be included in the decedent's gross
gro ss estate?
I.
II.
Share
properties
of the
surviving
spouse
Capitalinorcommon
paraphernal
property
of the
surviving
spouse
III.
IV.
a.
Properties outside the Philippines of a non-resident citizen decedent
Intangible personal property in the Philippines of a non-resident alien
I only
c. I, III and IV only
b. I and III only
d. I, II, III and IV
Transfer in Contemplation of Death and Revocable Transfers
55.
Which of the following is not a characteristic of donation mortis causa?
a. The transfer to the donee is irrevocable while donor is alive.
b. There is no conveyance of title or ownership
o wnership to the donee before the death of the donor.
c. The transferor retains the full or naked ownership and control of the property while alive.
d. The transfer should be void if the donor should survive the donee.
56.
Which of the following statements is incorrect?
a. In a revocable transfer, the decedent during his lifetime may revoke, alter, amend, or
terminate the terms of enjoyment or ownership of the property.
b. A revocable transfer is always includible in the gross estate
estat e of the decedent-transferor,
c. A revocable transfer shall be included in the gross estate of the decedent-transferor even
though the power to revoke was not exercised.
d. The power of the decedent-transferor to revoke terms may be exercised just once.
57.
Lolo Sot, 95 years old, was to diagnosed dispose all of his various properties ailments to his on
children January and 1, relatives. 2018. Motivated by thought of death, he decided to dispose
all his properties to his children and relatives. On the same day, he made donations inter-vivos
to his other relatives as to his properties in the United States. Lolo Sot died a month after
disposing all his properties. Should the properties donated by Lolo Sot to his other relatives be
included in his gross estate upon his death?
proper ties anymore at the time of death.
a. No, because they were not his properties
b. Yes, because the donations were donations mortis causa and should be governed by the
rules on estate taxation.
alre ady on the donations.
c. No, if the donor's tax had been paid already
d. No, because they were not transfers in contemplation of death, since the donations were
not simultaneous with the execution of the last will and testament.
58.
To prevent undue avoidance of tax, inter-vivos disposition in contemplation of death is subject to
a. Doner’s tax
c. Income tax
b. Estate tax
d. Excise tax
59.
The following are deemed transfers in contemplation
co ntemplation of death, except
a. While still alive, the decedent donated property where the
t he donation will take effect at the
time of his death.
o f the business operation.
b. The decedent transferred a property
proper ty in the regular course of
c. The decedent donated a property with the
t he condition that he/she will enjoy the fruits of
such while he/she is still alive.
d. The decedent transferred a property to take effect after his/her death
General Power of Appointment (GPA) and Special Power of Appointment (SPA)
(SPA)
60.
Statement 1: A special power of appointment authorizes the donee of the power to appoint only
from among a designated class or group of persons other than himself.
Statement 2: The donee-decedent of a special power of appointment only holds the property in
trust, hence, the property shall form part of the donee-decedent's gross estate.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect
61.
Which is correct?
a. The person who creates the power is the donor of the power (donor-decedent).
b. The person who is given the right to exercise the power of appointment is the donee
(donee-decedent)
c. The property being transferred and the subject of the power of appointment is the
appointed property.
d. All of the above
62.
Which of the following statements is incorrect?
a. A general power of appointment authorizes the donee of the power to appoint any person
to possess or enjoy the property.
b. A general power of appointment makes the donee of the power the owner of the property.
c. The appointed property passing under a general power of appointment is not includible in
gross
estate
of the donee-decedent.
d. the
None
of the
above
63.
One of the following donations is not included as part of gross estate
a. Revocable transfers
b. Transfers with reservation of certain rights
c. Transfers under special power of appointment
d. Transfers in contemplation of death
64.
Statement 1: Aguinaldo devised in his will a piece of land; naked title to Bonifacio and usufruct to
Rizal for as long as Rizal lives, thereafter to Bonifacio. The transmission from Aguinaldo to Bonifacio
and Rizal is subject to estate tax but the merger of the usufruct and the naked title to Bonifacio
upon the death of Rizal is exempt.
Statement 2: Erap devised in his will real
re al property to his brother Fidel who is entrusted with the
obligation to preserve and transmit the property to JDV, a son of Fidel, when JDV becomes of age.
The transmission from Fidel to his son JDV is subject to tax.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect
65.
statement 1: The power of appointment is "general"
"ge neral" when the power of appointment authorizes the
donee of the power to appoint only from a restricted or designated class of persons
pe rsons other than
statement 2: Special power of appointment exists when the power of appointment authorizes the
donee of the power to appoint any person he pleases.
a.
b.
c.
d.
66.
Only statement 1 is correct
Only statement 2 is correct
Both statements are correct
Both statements are incorrect
Which of the following transfer is not included in the gross estate?
a. Transfer with reservation of certain rights
b. Transfer for insufficient consideration
c. Transfer for an adequate and full consideration in money or money's worth
d. Transfer in contemplation of death
67.
Statement 1: Pedro died giving Juan the power to appoint a person who will inherit his house and
lot. Juan, however can only choose among Ana, Lorna
Lor na and Fe. Juan decided to transfer the property
to Fe through the former's will. The transfer from Juan to Fe is subject to estate tax.
Statement 2: During A's lifetime, he decided to give B as gift his (A) ccar
ar subject to the condition that
if B does not become a CPA within 3 years, A shall revoke the transfer. In the second year however,
A died. The car should form part of A's gross estate.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect
68.
The following are transactions and acquisitions exempt from transfer tax, except
e xcept
a. Transmission from the first heir or donee in favor of another beneficiary in accordance with
the desire of the predecessor
b. Transmission or delivery of the inheritance or legacy by the fiduciary or legatee to the
fideicommissary
c. The owner of the usufruct in the owner of the naked title
d. All bequest, devises, legacies or transfers to social welfare, cultural and charitable
institutions.
Insufficient Consideration
Consideration
69. On the belief that Pedro is about to die, he sold to his daughter a parcel of land valued at P3,000,000
for the same amount. One (1) year later,
late r, Pedro died of a ccar
ar accident. At that time, the property had
already a value of P3,500,000. For Philippine estate tax purposes, the amount includible in the gross
estate is
a. P500,000
b. P3,000,000
c. P3,500,000
d. nil
70.
Vlad died on October 20, 2018. During his lifetime, upon knowing that he had Stage 4 cancer, sold
his Lamborghini car to his son for P4,000,000. The fair market value of the cår at the time of sale is
P3,000,000 while it is already valued at P5,000,000 at the time of death. The amount that will be
added to gross estate is:
a.
P0
b. P500,000
c.
P800,000
d. P1,200,000
71.
Based on the preceding number, if the
t he consideration is fictitious, how much will form part of gross
estate?
a. P1,000,000
c. P5,000,000
b. P2,000,000
d. nil
72.
Pedro, decedent, owns a property valued at PI,500,000 at the time of his death. The said property
was sold by Pedro during his lifetime to Juan for P700,000
P7 00,000 when its value was PI,200,000. It was
agreed by Pedro and Juan that the former will enjoy the income o
off the property as long as he lives.
For Philippine estate tax purposes, how much will be included in determining gross estate?
a. P0
c. P800,000
d. P1,200,000
b. P500,000
73.
Based on the preceding number, if the
t he fair market value of the property at the time of death is only
P600,000, how much will form part of gross estate?
a. P0
c. P800,000
b. P500,000
d. P1,200,000
Proceeds of Life Insurance
74. Which of the following is not included in the gross estate?
e state?
a. Revocable transfer where the consideration
c onsideration is not sufficient.
b. Revocable transfer where the power of revocation was not exercised.
c.
75.
76.
Proceeds of life insurance where the beneficiary designated is the estate and the
designation is irrevocable
d. Proceeds of life insurance where the beneficiary designated is the mother and the
designation is irrevocable.
Amounts receivable by the estate of the deceased, his executor or administrator as an insurance
under policy taken by the decedent upon his own life is:
a. Excluded from the gross estate;
b. Part of the gross estate whether the beneficiary is revocable
revocable or
irrevocable;
c. Part of the gross estate if the beneficiary is revocable;
d. Part of the gross estate
est ate if the beneficiary is irrevocable.
Proceeds of life insurance where the beneficiary of the decedent is not his estate, executor or
administrator is:
a. Part of gross income if the beneficiary is revocable
b. Part of gross income regardless whether the beneficiary is revocable or
irrevocable
c. Not part of gross estate if the beneficiary is irrevocable
d. Part of gross estate regardless whether the beneficiary is revocable or irrevocable
77.
Proceeds of life insurance to the extent of the amount receivable by the estate of the deceased, his
executor or administrator under policies taken out by the
t he decedent upon his own life shall be
I.
Part of the gross estate irrespective of whether or not the insured retained the power of
II.
revocation
Not part of the gross estate if the beneficiary is irrevocable.
III.
IV.
Part of the gross income if the designation of the beneficiary is revocable
Not part of the gross income irrespective of whether or not the insured retained the power
of revocation
a. land Il
b. land Ill
78.
c. land IV
d. only I
Which of the following life insurance proceeds shall not be included in the computation of gross
estate?
a.
Beneficiary is the estate, executor
e xecutor or administrator and the designation of the beneficiary IS
revocable;
b. Beneficiary is the estate, executor or administrator and the designation of the beneficiary is
irrevocable;
c.
Beneficiary is other than the estate, executor or administrator and the designation of the
beneficiary is revocable;
d. Beneficiary is other than the estate, executor or administrator and the designation of the
beneficiary is irrevocable.
79.
Which of the following statements is incorrect?
a.
Marriage settlements may fix the property relations of spouses during the marriage within
the limits provided by the family code.
b. The purpose of system of property relationship is to distinguish a conjugal or
o r community
property from an exclusive property.
c. Modifications or amendments in the marriage settlements may only be allowed after the
d. celebration of the marriage.
e. None of the above.
80.
statement 1: Conjugal partnership of gains, absolute community Of property and complete
separation are all valid regimes that may govern property relations between spouses.
statement 2: Under the regime of absolute community of property, the husband and the wife place
in a common fund the proceeds, products, fruits and income from their separate property and those
acquired by either or both spouses through their
t heir effort or by chance.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect
81.
Under the law, the property relationship between husband and wife shall be governed in what
order?
I.
By marriage settlements executed before the marriage.
II.
By the provisions of this Code.
III.
By the local custom.
a. I, II, III
c. II, III, I
d. III, II, I
b. I, III, II
82.
Exclusive property of the wife is called?
a. income
b. capital
c. paraphernal
83.
Exclusive property of the husband is called?
a.
b.
84.
d. equity
income
capital
c.
paraphernal
d.
equity
The gross estate of a decedent who was married at the time of death will be composed of:
a.
His capital property, the wife's paraphernal property and the common property
b. His capital property and the common property
c. Common property
d. His capital property
85.
Statement 1: In the absence of marriage settlements executed before the marriage, the property
relationship between husband and wife shall be governed by local custom and by the provisions of
law, respectively.
Statement 2: Claims against insolvent persons may be charged against exclusive property
a. Only statement 1 is correct
b. Only statement 2 is correct
c.
Both statements are correct
d. Both statements are incorrect
86.
In the absence of a marriage settlement, or when the regime agreed upon is void, the property
relations of the spouses who married before August 3, 1998 shall be governed by:
a.
Absolute community of properties.
b. Conjugal partnership of gains.
c. Absolute separation of properties.
d. No property relations.
87.
In the absence of a marriage settlement, or when the regime agreed upon is void, the property
relations of the spouses who were married on or after August 3, 1998 would be?
a. Absolute community of properties.
b. Conjugal partnership of gains.
c. Absolute separation of properties.
d. No property relations.
88.
The following are exclusive property of each spouse. Which one is not?
a. That which each acquires during the marriage by lucrative title.
b. That which is purchased with the exclusive money of either spouse.
c. That which is acquired by exchange with other property belonging to the spouses.
d. That which is brought to the marriage as his or her own.
Conjugal Partnership of Gains (CPG)
89. One of the following is a conjugal property of
o f the spouses
a. That which is brought to the marriage as his or her own
b. That which each acquires during the marriage by inheritance
c.
The fruits of an exclusive property
d. That which is purchased with the exclusive property of the wife
90.
Which of the following is exclusive property under the system of conjugal partnership of gains
a. Poverty before marriage
b. Inheritance during marriage
c. Property acquired during marriage out of exclusive
ex clusive money
d. All of the above
91.
Which is not an exclusive property of a spouse?
a. That which is brought to the marriage as his or her own.
b. That which each acquired during the marriage by gratuitous
g ratuitous title.
c. That which is acquired by right of redemption
d. That which is purchased by the spouses’ common fund.
92.
Which of the following is exclusive property under the system of conjugal partnership of gains?
a. Property before marriage
b. Inheritance during marriage
c. Property acquired during marriage out of exclusive money
d. All of the above.
Absolute Community of Property
93. One of the following is not a community property of the spouses
a. Property inherited by the husband before marriage
b. Winnings in gambling
c. Fruits of property inherited during the marriage
d. Fruits of property inherited before the marriage
94.
Which of the following is exclusive property under the system of absolute community of property?
a. Property before marriage
b. Inheritance during marriage
c. Property acquired during marriage
d. All of the above.
95.
Properties owned by the spouses before and brought into the
t he marriage shall be classified as:
Absolute Community Property
Conjugal Partnership of Gains
a. Community
Conjugal
b. Exclusive
Exclusive
c. Community
Exclusive
d. Exclusive
Conjugal
96.
The fruits on properties owned by the spouses before and brought into the marriage shall' be
classified as:
Absolute Community Property
Conjugal Partnership of Gains
a
b
c
Community
Exclusive
Community
Conjugal
Exclusive
Exclusive
d
97.
98.
Exclusive
Properties received from gratuitous transfer during marriage shall be classified as:
Absolute Community Property
Conjugal Partnership of Gains
a. Community
Conjugal
b. Exclusive
Exclusive
c. Community
Exclusive
d. Exclusive
Conjugal
Properties received from gratuitous transfer during marriage where the donor or testator expressly
provides that it shall form part of the common property of the spouses shall be classified as:
Absolute Community Property
a.
b.
c.
d.
99.
Conjugal
Community
Exclusive
Community
Exclusive
Conjugal Partnership of Gains
Conjugal
Exclusive
Exclusive
Conjugal
The fruits received during marriage from gratuitous transfer will be classified as:
Absolute Community Property
a. Community
Exclusive
b.
c. Community
d. Exclusive
Conjugal Partnership of Gains
Conjugal
Exclusive
Exclusive
Conjugal
100. Personal property for personal and exclusive use shall e classified as:
Absolute Community Property
a.
b.
c.
d.
Community
Exclusive
Community
Exclusive
Conjugal Partnership of Gains
Conjugal
Exclusive
Exclusive
Conjugal
101. How much is the conjugal properties under Conjugal Partnership of Gains?
a. P12,510,000
b. P18,510,000
c. P22,310,000
d. P23,610,000
102. How much is the gross estate under Conjugal Partnership of Gains?
a. P12,510,000
c. P22.310,000
d. P23,610,000
b. P18,510,000
103.
How much is the community properties under Absolute Community of Property?
a.
P12,510,000
c.
P22,310,000
b.
P18,510,000
d.
P23,610,000
104. How much is the gross estate under Absolute Community of Properties?
a. P12,500,000
b. P18,510,000
c. P22,310,000
d. P23,610,000
105. Statement 1: The right to succession is effected at the time of the transfer of the decedent’s
property or rights to the heir.
Statement 2: Ana is the surviving spouse of Jose. Her share in their community property is
classified as her exclusive property and shall form part of
o f the decedent's distributable estate.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect
106. The list provided below is not included in the gross estate of a decedent, except
a. Share in common properties of the surviving spouse;
b. Exclusive property of the surviving spouse;
c. Properties outside the Philippines of a non-resident alien decedent;
d. Intangible personal property in the Philippines of a non-resident alien when the rule of
Reciprocity applies.
107. How much is the net taxable estate
e state under Conjugal Partnership of Gains?
a. P3,926,000
c. P3,426,000
b. P6,426,000
d. P1,348,000
108. How much is the net taxable estate
e state under Absolute Community of Property?
a. P4,836,000
c. P1,174,000
b. P(2,174,000)
d. P2,174,00
Deductions From Gross Estate
Funeral Expenses
109. Which of the following is correct?
a. Cost of burial plot, tombstone, monument or mausoleum can be claimed as deduction from
gross estate including their upkeep.
b. Expenses of the prayer vigils succeeding the burial are deductible from the gross estate
c. Telecommunication expenses incurred to inform relatives of the decedent may be claimed
as deduction from gross estate.
d. All of the above
110. Which is deductible from gross estate?
a.
b.
c.
d.
Interment fees
Expenses incurred after interment
Interment expenses borne by the decedent’s best friend
Death and interment notice published and duly receipted
111. Not allowed as funeral expense
a.
Burial plot
b.
c.
d.
112.
Mourning clothes of surviving spouse
Mourning clothes of minor and unmarried children
Expenses for religious rites 40 days after death
Statement 1: Funeral expenses derived from assistance by sympathizers are deductible funeral
expense
Statement 2: Receipts or invoices or other evidence to show that the expense was really
incurred must duly support the funeral expense.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect
113.
Jose died on November 1,2017 leaving a gross estate of P4,500,000. The actual funeral expense
on his burial id P250,000. Of the said amount, P100,000 is unpaid. How much is the funeral
expense that can be claimed
c laimed in computing the taxable net estate?
a. P100,000
c. P200,000
b. P150,000
d. P250,000
114.
Based on the above data, how much is the deducible claims against the estate?
a. P5,000
b. P100,000
c. P150,000
d. P0
115.
Assume Jose died on Nov. 1, 2018, how much
m uch is the funeral expense that can be claimed in
computing the taxable net estate?
a. P150,000
c. P250,000
b. P200,000
d. nil
116.
Aling Fely, administrator, claims the following funeral expenses for a decedent who died in
2017:
Expenses of interment (paid by friend)
P 60,000
Cost of burial & tombstone (1/2 paid by relatives)
42,000
Other funeral parlor expenses
Expenses during the wake
Obituary notice
Card of thanks
Mourning clothing of friends
Mourning clothing of unmarried minor children
If the gross estate is P1,500,000, the allowable funeral expenses is:
a. P75,000
b. P82,500
c. P93,500
d. P174,500
36,000
13,000
7,500
3,500
15,000
5,000
117.
based on the preceding number, but the gross estate is P2,500,000, the allowable funeral
expense is:
a. P75,000
c. P93,500
b. P82,500
d. P174,500
Juridical Expenses
118.
Judicial expenses may be deducted from the gross estate
e state of a decedent who died before 2018
Which of the statements provided below is correct?
correc t?
a. Judicial expenses are costs and expenses incurred during the settlement of the estate
b. Any unpaid amount of judicial expenses need not be supported by a sworn statement of
account issued and signed by the creditor.
c. Attorney's fees incident to litigation incurred by the
t he heirs in asserting their respective rights
cannot be claimed as deduction from gross estate.
d. Expenses incurred in the administration and settlement of an estate in extrajudicial
proceedings is not allowed as deduction.
119.
Judicial expenses may be deducted from the gross estate
e state of a decedent who died before 2018.
However, expenses not essential in the proper settlement of the estate but incurred for the
individual benefit of the heirs, legatees, or devisees are not allowed as judicial expenses. Which
of the following is non-deductible under this category?
a. Attorney's fees paid by the heirs to their respective lawyers arising from conflicting claims
are not deductible as judicial expenses. These expenses should be separately
se parately borne by
them.
b. Premiums paid by a judicial administrator on his bond are not deductible because the
ability of the appointee to give bond is in the nature of a qualification.
c. Compensation of trustees such as expenses being for the account and benefit not of the
estate but of the beneficiaries
d. All of the above
120.
Statement 1: To be deductible, judicial expenses should be incurred during the settlement of
the estate but not beyond the last day prescribed by law, or the extension thereof, for the filing of
estate tax return.
Statement 2: Expenses primarily incurred by an heir intended to establish his interest in the
estate are deductible judicial expenses from the gross estate.
a.
b.
c.
d.
121.
Only statement 1 is correct
Only statement 2 is correct
Both statements are correct
Both statements are incorrect
Which of the following statements is true?
Statement 1: Expenses incurred in locating a legal heir of the testator is a deductible judicial
expense
Statement 2: Brokerage fees in selling property of the estate are part of the deductible judicial
expense
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect
122.
Which of the following incurred expenses shall not be deducted under the category of judicial
exposes for a decedent who died before 2018?
a. Expenses for the inventory-taking of the assets comprising
com prising the gross estate;
b. Expenses for the administration and payment of debts of the estate;
e state;
c. Expenses for the distribution of the estate among the heirs;
d. Expenses as of the last illness of the decedent
123.
Which of the following is deductible as judicial expense of the testamentary and judicial
proceedings?
a. Expenditures incurred for the individual benefit of the heirs, devisees or legatees
b. Premiums paid on the bond filed by the administrator as an expense of the administration
in nature of qualification for the office.
c. Attorney's fees incident to litigation incurred by the heirs in asserting their respective
rights.
d. Payments to an accounting firm for services in taking inventory of assets, tax consultations,
and preparation of income tax returns for the the estate.
124.
Mr. Ded, a bachelor and resident Filipino citizen, died on November 2, 2017. The following fees
were paid to the following in connection with the settlement of his estate.
Executor, for time and effort in executing the will
P50,000
Attorney, for legal advice in carrying out the will
P80,000
Appraiser, for establishing property values
70,000
Administrative expenses for locating and collecting assets
40,000
Accountant, for estate tax return preparation
30,000
How much deduction for judicial expenses may the estate claim?
a. P150,000
c. P230,000
b. P220,000
d. P270,000
125.
Pedro died in 2017. The following are the requisites
r equisites in claiming casualty losses in the
computation of estate tax, except:
a. Losses are not compensated by insurance;
b. Losses must not have been claimed as deduction in the computation of income tax;
c. Losses were incurred not later than the six (6) months from the time of death.
d. Losses were incurred not later than one (1) year from the time of death.
126.
Pedro died in January 2018. The following are the requisites in claiming casualty losses in the
computation of estate tax, except:
a. Losses are not compensated by insurance;
b. Losses must not have been claimed as deduction in the computation of income tax;
c. Losses were incurred not later than one (1) year from the time of death
d. None of the above
127.
Deductible claims against the estate or indebtedness in respect
respec t of property may arise out of,
except:
a. contract
b. tort
c. operations of law
d. none of the above
128.
Which of the following statements pertaining to the duly notarized certification from the
creditor as to the unpaid balance of debt of debt by the decedent including interest as of the
date is correct?
a. If the creditor is a corporation, it shall be signed by President, or Vice-President or other
principal officer of the corporation.
b. If the creditor is a partnership, it shall be signed by any of the general
gener al partners.
c. If the creditor is a bank or other financial institutions, it shall be executed by the branch
manager of the bank/financial institution which monitors and manages the loan of the debt
or decedent.
d. All of the above
129.
The following -are the requisites in order for claims against the decedent's estate m
may
ay be
deductible, except which one?
a. They must be the personal debt of the decedent
b. They must be enforceable in court.
c. They may have been condoned prior to death.
d. If the loan was contracted 3 years before death, submit statement showing the disposition
of the proceeds.
130.
Which of the following is not deductible from the gr
gross
oss estate of a decedent?
I. Income taxes on income received after death
II. Property taxes not accrued before death
III. Estate Tax
a. I and Il only
b. Il and Ill only
131.
c. All of the above
d. None of the above
If a loan is found to be merely
me rely an accommodation loan where the loan proceeds went to
another person, which of the following statements is incorrect?
a. The value of the unpaid loan must be included as a receivable of the estate.
b. If there is a legal impediment to recognize the same as rec
receivable
eivable of the estate, said unpaid
obligation shall not be allowed as a deduction from gross estate.
c. In all instances, the mortgaged property, to the extent of the decedent's interest therein,
should always form part of the gross estate.
d. None of the choices
132.
Which of the following is not a requirement in claiming unpaid mortgage as deduction for estate
tax purposes?
mortg aged property, net of the mortgage indebtedness, should
a. The fair market value of the mortgaged
be included in the gross estate;
b. The fair market value of the mortgaged
mortg aged property undiminished by the mortgage
indebtedness should be included in the gross estate;
c. The loan must be contracted in good faith
d. The loan must be for an adequate and full consideration.
133.
Mr.
Pobre
needsoofhe
money
tothe
start
a small
However,
he Mr.
has Rich
no property
to
t o secure
a
loan
fromisainbank
sought
help
of hisbusiness.
good friend
Mr. Rich.
then obtained
a
ban from Banco de Uro amounting to 1 million pesos secured by a real property worth 2 million
million
pesos to accommodate the request of Mr. Pobre. If subsequent to securing the loan and
delivering to Mr. Pobre the proceeds, Mr. Rich died, how much gross estate should be re
reported?
ported?
a. P1,000,000
b. P2,000,000
c. P3,000,000
d. Nil
134.
A piece ofinland
fair market
P 10,000,000you
at the
time
ofthat
the decedent's
death
was
included
the with
grossaestate.
Uponvalue
closerofexamination,
found
out
the value used
was
net of P2,000,000 unpaid mortgage on the same land. How much should have been included
and deducted from the gross estate?
Amount to be included
Amount to be deducted
a. P12,000,000
2,000,000
b. P10,000,000
2,000,000
c. P10,000,000
0
d. P8,000,000
0
Vanishing Deduction
135.
The following are the requisites for vanishing deduction to be allowable, except one.
a. The
The estate
of the prior
havefrom
beendate
finally
paid.
b.
presenttax
decedent
diedsuccession
within fivemust
(5) years
of determined
death of theand
prior
decedent
c. The property with respect to which deduction is sought can be identified as having been
received by the present decedent from the prior decedent.
d. None of the above
136.
Ded Nha, a citizen of the Philippines and resident of Manila died intestate on November 2, 2018
Among estate are properties acquired through public sale of properties left by Bernardo who
died 4 ½ years ago. What percentage of deduction will be used in computing the amount of
vanishing deduction?
a. 60%
b. 40%
c. 20%
d. nil
137.
Which of the following properties of Namayapa Nha who died December 1, 2018 is subject
vanishing deduction?
Property 1: Rest House in Tagaytay purchased in 2012
Property 2: Commercial lot and building inherited from her mother in 2011 where the
t he
estate tax thereon had not been paid.
Property 3: Donation from a friend in 2013
Property 4: Property won in a lottery six (6) months before death.
Property 1
Property 2
Property 3
Property 4




a. No
b. No
No
No
Yes
Yes
Yes
No
c. Yes
d. Yes
Yes
Y
es
Yes
No
No
No
Yes
No
138.
Pedro a citizen of the Philippines
P hilippines and resident of Makati City, died testate on May 10, 2018.
Among his gross estate were properties inherited from his deceased father who died on
o n April 4,
2015. What percentage of the deduction would be used in computing the amount of vanishing
deduction?
a. 60%
c. 20%
b. 40%
d. nil
139.
Mr. Pin Manaw, resident decedent, married, died leaving the following properties:
Real and personal properties acquired during the marriage
P 3,000,000
House and Lot inherited from his father one year and 3 months
2,000,000
before he died (Fair market value when inherited, P1,500,000)
used as the decedent’s family home
Car purchased with cash received as gift from
his mother during the year he died.
500,000
Cash(inclusive of P500,000 received as inheritance from the father)
1,500,000
The following obligations and expenses where also made available:
Claims against conjugal properties
Unpaid
theP600,000)
inherited house and Lot
(originalmortgage
mortgageon
was
How much is he total vanishing deduction?
a. P100,000
b. P1,080,000
140.
600,000
100,000
c. P1,530,000
d. nil
Teh Pok died on November 20, 2018. Some of the properties he le
left
ft are the following:
Market Value
Asset Mode of Acquisition Date Acquired
Date Acquired
Date of Death
Land Purchased
7-3-14
500,000
350,000
Car
Donation
10-2-17
800,000
980,000
Other information:
a) The gross estate of the decedent amounts to P3,000,000.
b) The car was mortgaged for P50,000
P 50,000 when it was acquired and Teh Pok paid the same before he
died.
c) The allowable deductions totaled P325,000, which includes judicial expenses of P30,000 and
funeral expenses of P150,000.
The vanishing deductions is a. P581,000
b. P571,000
c. P648,000
d. P637,617
141.
A decedent died in 2016 leaving properties he inherited 2 1/2 years ago which had fair market
value of at the time of his death at the time of inheritance, and unpaid mortgage of P500,000
paid by the present decedent). After inheritance, the decedent mortgages the property for
P500,000 and paid the same before his death, other properties in his gross estate had fair
market value of P10,000 The total expenses, losses, indebtedness, taxes and transfer for public
purpose amounted to P3,000,000.
How much is the vanishing deduction?
a.
P2,000,000
b.
P2,750,000
142.


P3,000,000
P3,120,000
Assume the same data in the immediately preceding number except for the following
assumptions:
The decedent died in 2018
Out of the P3,000,000 expenses,
e xpenses, losses, indebtedness, taxes and transfer for public use
P200,000 was incurred for funeral expenses and P400,000 for judicial expenses.
How much is the vanishing deduction?
a. P2,000,000
b. P2,750,000
143.
c.
d.
c. P3,000,000
d. P3,120,000
Mrs. Nathy Gok died on March 20, 2017 leaving a gross estate of P8,000,000 including a land
inherited from his uncle on October 15, 2013 and a car donated to him on
o n April 20, 2011. The
following data pertain to the two properties:
Unpaid mortgage
FMV upon receipt
FMV upon death
Land
P1,000,000
P1,800,000
P1,250,000
Car
50,000
300,000
400,000
The decedent was able to pay 1/2 of the unpaid mortgage on the land before his death. The deductions
are:
Expenses, losses, indebtedness, taxes (excluding the unpaid mortgages
P1,200,000
above but including actual funeral expenses of P300,000
and medical expenses of P600,000)
Transfer to the Government, included above
300,000
Family home (included above)
2,000,000
The allowable vanishing deduction is:
a. P213,000
b. P426,000
144.
c. P440,625
d. P626,000
The taxable net estate based on the preceding number is:
a. P2,174,000
c. P4,074,000
d. P4,174,000
b. P3,174,000
145.
Mrs. Nathy Gok died on March 20, 2018 leaving a gross estate of including a land inherited from
his uncle on October 15, 2014 and a car donated to him on April 20, 2012. following data pertain
to the two properties:
Unpaid mortgage
FMV upon receipt
FMV upon death
Land
P1,000,000
P18,000,000
P12,500,000
Car
500,000
3,000,000
4,000,000
The decedent was able to pay 1/2 of the unpaid mortgage on the land before his death. The deductions
are:
Expenses, losses, indebtedness, taxes (excluding the unpaid mortgages
above but including actual funeral expenses of P3,000,000
and medical expenses of P6,000,000)
Transfer to the Government, included above
Family home (included above)
The allowable vanishing deduction is:
a. P2,130,000
b. P4,260,000
146.
P12,000,000
3,000,000
2,0000,000
c. P4,380,000
d. P6,260,000
The taxable net estate based on the preceding number is
a.
P2,174,000
b. P40,000,000
c.
P51,620,000
d. P52,000,000
147.
vanishing deduction on properties received from gratuitous transfer before marriage shall be
classified as:
Absolute Community Property
Conjugal Partnership of Gains
a. Community
Conjugal
b. Exclusive
Exclusive
Exclusive
c. Community
d. Exclusive
Conjugal
148.
Vanishing deduction on properties received from gratuitous transfer during marriage shall be
classified as:
Absolute Community Property
Conjugal Partnership of Gains
a. Community
Conjugal
b. Exclusive
Exclusive
c. Community
Exclusive
d. Exclusive
Conjugal
149.
If the decedent is married
marrie d under the conjugal partnership of gains, vanishing deduction shall be
chargeable against?
a.
Exclusive Properties
b.
Conjugal Properties
c.
Either Exclusive Properties or Conjugal Properties
d.
Neither Exclusive nor Conjugal Properties
150.
The following are required to be listed as part of the gross estate, but are exempted from estate
tax, except
a. Share of the surviving spouse
b. Transfer for public use
c. Exclusive property of the decedent
d. Amount received by heirs under RA 4917
151.
Which statement is incorrect about claims against insolvent persons?
a. They must be included in the gross estate even
e ven if uncollectible.
b. They must be duly notarized as a rule.
c. The deduction is only the uncollectible portion.
d. The insolvency of the debtor must be established.
152.
Statement 1: In a claim against insolvent person, the insolvency of the debtor z
Statement 2: It could be that the amount to be included as pad of the gross estate is a claim
against insolvent person is less than the full amount owed.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect
153.
The following data were taken from the estate of Pedro:
Claims against Juan (insolvent), PI 00,000, fully uncollectible.
Claims against Manuel (insolvent), P200,000, 50% collectible.
Claims against a person who absconded, P300,000.



Based on the data provided, how much should be deducted from Pedro's gross estate?
a. P600,000
c. P200,000
b. P500,000
d. Nil
154.
One of the following statements is wrong. Claims against insolvent persons
1. Should always be included in the gross estate.
2. If entirely uncollectible, may be omitted in the
t he computation for the net taxable estate
3. Can give rise to reduction even if the debtor had some properties.
4. Can be a deduction even if secured
sec ured by a mortgage.
155.
The gross estate of Juan includes P80,000 receivables
rec eivables which is duly notarized from debtor Pedro
Pe dro
whose records show:
Assets
P 100,000
Indebtedness to:
Government
40,000
Juan
80,000
Other creditors
20,000



The deductible claims against insolvent person is
a. P29,285
b. P32,000
c. P48,000
d. P80,000
SPECIAL DEDUCTIONS:
Standard deduction
156.
The following statements are correct regarding
r egarding standard deduction under the TRAIN LAW,
except:
a. A deduction in the amount of P5,000,000 shall be allowed as an additional deduction
without need of substantiation.
b. The full amount of shall be allowed as deduction for the benefit of the decedent.
c. Standard deduction is not allowed to decedents who are non-resident aliens.
d. None of the above
157.
If a decedent died prior to 2018, standard deduction from his gross estate is allowed for
PI,000,000 unless the decedent
a.
has a gross estate valued not more than PI,000,000
b.
has his estate opted for itemized deduction
c.
was a resident alien
d.
was a non-resident alien.
158.
All of the following items are allowed as deductions
de ductions against exclusive portion of the estate,
except
a. Has a gross estate valued not more than P1,000,000
b. Claims against insolvent persons
c. Share of the surviving spouse
d. Family home
159.
Medical expense is allowed as a deduction from the gross estate of decedent who died prior the
effectivity of the TRAIN Law. Which of the following is correct?
I.
II.
If the actual amount of medical expenses incurred is P300,000, then only P300,000 shall be
allowed as deduction and not to the extent
ex tent of the P500,000 thre
threshold
shold amount.
If the actual amount of medical expenses incurred within the year prior to decedent's death is
P700,000, only the maximum amount of P500,000 shall be allowed as deduction. If in case the
excess of P200,000 (P700,000 —P500,000) is still unpaid, such amount shall be deducted from
the gross estate as "claims against the estate"
a. I only
b. Il only
c. l and Il
d. None of the above
Family Home (FH)
160.
Which of the following statements is incorrect in connection
co nnection with family home deduction prior
to TRAIN Law?
a. Family home deduction shall be allowed only if such family home is situated in the
Philippines
b. The total value of the family home must be included as part of the gross e
estate
state of the
decedent
c.
For purpose of availing family home deduction, a person may constitute only one family
home
d. Family home deduction may not be lower than P1,000,000
P1,000,0 00
161.
A decedent died on Nov. 1, 2017 leaving a family home composed of the following: Conjugal
house worth P800,000, and the land which he exclusively owned valu
valued
ed at P400,000. He also
owns a vacation house in Baguio worth P700,000. The deductible amount of family home is
a. P800,000
c. P1,200,000
b. P1,000,000
d. P1,900,000
162.
Based on the preceding number, if the house is also an exclusive property, how much is the
deductible family home allowance?
c. P1,200,000
a. P800,000
d. P1,900,000
b. P1,000,000
163.
In 2016, a married, nonresident citizen decedent has the following common properties,
obligations, and expenses
Real property, Philippines
P 4,000,000
Real property, USA
5,000,000
Funeral expenses
250,000
Judicial expenses
150,000
Unpaid taxes
50,000
Medical expenses
650,000
The real property in the Philippines includes the family home valued at P1,500,000.
P1,500, 000. How much is
the taxable net estate?
a. P6,350,000
c. P2,050,000
d. P2,300,000
b. P3,050,000
164.
Under conjugal partnership of gains, gross conjugal property is
a. P1,300,000
c. P800,000
b. P1200,000
d. P300,000
165.
The 1/2 share of the surviving spouse is
a. P600,000
b. P575,000
166.
167.
The net taxable estate of the decedent is
a. P600,000
b. P575,000
c. P500,000
d. P300,000
c. P500,000
d. P475,000
Prior to TRAIN Law, which of the following is deductible from the gross estate of a non-resident
alien decedent?
c. Family home allowance
a. Funeral and judicial expenses
b. Death benefits under RA 4917
d. Standard deduction
168.
Under TRAIN Law, all of the following, except ones are not deductible from the gross estate of a
non-resident alien:
a. Funeral and judicial expenses
c. Family home allowance
d. Standard deduction
b. Death benefits under RA 4917
169.
One of the following cannot be claimed as deduction from the
t he gross estate of a non-resident
non-re sident
alien decedent
a. Vanishing deduction
b. Medical expenses
c. Share of surviving spouse
d. Transfer for public use
170.
One of the following is allowed as a deduction from .the gross estate of a non-resident
non-r esident alien
decedent who died prior to 2018, but is prorated between Philippine gross estate and the total
or world gross estate:
a. Expenses, losses, indebtedness, taxes, etc.
b. Share of the surviving spouse
c. Vanishing deduction
d. Amount received under R.A. 4917
171.
One of the following is allowed as a deduction from the gross estate of a non-resident alien
decedent who died on or after January 1, 2018, but is prorated between Philippine gross estate
and the total or world gross estate:
a. Losses, indebtedness, taxes, etc.
b. Share of the surviving spouse
c. Vanishing deduction
d. Amount received under R.A. 4917
172.
One of the following is allowed as a deduction from the gross estate of a non-resident alien
decedent (prior or after TRAIN Law)
c. medical expenses
a. transfer for public use
b. standard deduction
d. family home
173.
Allowable deduction for non-resident alien decedent who died on January 1, 2018:
20 18:
a. funeral expenses
b. vanishing deductions
c. family home
d. all of the above
Use the following data for the next four (4) questions:
Sarah a resident of China and a Chinese citizen died last July 4,2017 leaving the following properties:
Land in Davao
P2,000,000
Rest house in China
Jewelries received from Leni, a week before her death
Family home
Car
1,000,000
500,00
1,500,000
800,000
The descendants of Sarah claimed the following deductions:
Funeral expenses
Claims against insolvent persons
Amounts received under RA 4917
Judicial expenses
Medical expenses incurred from
September 2016 to July 4, 2017
Family home
Standard deductions
174.
175.
The gross estate is
a. P4,800,000
b. P5,300,000
c. P690,411
d. P800,000
c. P445,205
d. P545,205
Net taxable estate is
a. P1,854,795
b. P2,049,884
178.
c. P5,800,000
d. P6,300,000
Deductible vanishing deduction shall be
a. P0
b. P335,205
177.
200,000
1,500,000
1,200,000
Total ELITe to be deducted from the gross estate
a. P300,000
b. P604,911
176.
P300,000
500,000
1,000,000
100,000
The taxable net estate is:
a. P5,165,000
b. P4,665,000
c. P4,000,000
d. P5,164,384
c. P4,981,250
d. P21,000,000
179.
The taxable net estate assuming Kano died on Nov. 1, 2017:
a. P5,165,000
c. P4,981,250
b. P4,665,000
d. P21,000,000
180.
If decedent is a Filipino
F ilipino citizen, the taxable net estate is:
a. P11,490,000
c. PP4,100,000
b. P12,645,000
d. P7,900,000
181.
Bonifacio, head of the family died on January 15, 2017, leaving the following properties and
obligations:
Cash in bank, 50%, donated mortis causa to Nati Govt;-50% to Q.C. gov’t
P300,000
House and Lot in Makati, F. Home
1,500,000
Personal properties
1,500,000
Farm lot
825,000
Claims against an insolvent debtor
225,000
Transfer in contemplation of death(gratuitous)
Transfer passing under special power of appointment
DEDUCTIONS CLAIMED:
Funeral expenses
Judicial expenses
Donation mortis causa to Quezon City government
Unpaid mortgage on the farm lot
Medical expenses
(included in the funeral expenses incurred within the first year period with receipts)
1,500,000
75,000
575,000
67,500
150,000
75,000
225,000
The farm lot was inherited 5 1/2
1/ 2 years by the decedent before his death with a value then Of P575,000
and a mortgage indebtedness of PI 50,000.
The taxable net estate is:
a. P2,672,329
b. P2,757,500
c. P3,757,000
d. P4,982,500
182.
Bonifacio, head of the family died on January 15,2018 leaving the following properties and
obligations:
Cash in bank, 50%, donated mortis causa to Nati Govt;-50% to Q.C. gov’t
House and Lot in Makati, F. Home
Personal properties
Farm lot
Claims against an insolvent debtor
Transfer in contemplation of death(gratuitous)
Transfer passing under special power of appointment
DEDUCTIONS CLAIMED:
Funeral expenses
Judicial
expenses
Donation
mortis causa to Quezon City government
Unpaid mortgage on the farm lot
Medical expenses
(included in the funeral expenses incurred within the first year period with receipts)
P3,000,000
15,000,000
15,000,000
8,250,000
2,250,000
15,000,000
750,000
5,750,000
675,000
1,500,000
750,000
2,250,000
The farm lot was inherited 5 ½ years by the decedent before his death with a value then of 5,750,000
and a mortgage indebtedness of 1,500,000.
The taxable net estate is:
a. 26,720,000
b. 37,500,000
c. 41,500,000
d. 50,500,000
183.
Statement 1: Estate Tax credit refers to the taxpayer's right to deduct from the tax due the
amount of tax it has paid to a foreign country.
Statement 2: Estate Tax credit could be claimed as a deduction if such taxes pertain to
properties which are included in the gross estate
est ate for Philippine estate tax computation.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect
184.
In computing the estate tax, which of the following shall not be allowed tax credit for ttaxes
axes paid
abroad?
a. Resident alien decedent
b. Non-resident alien decedent
c. Resident citizen decedent
d. Non-resident citizen decedent
185.
Statement 1: Estate Tax credit refers to the taxpayer's right to deduct from the tax due the
amount of tax it has paid to a foreign country.
Statement 2: Estate Tax credit could be claimed as a deduction if such taxes pertain to
properties which are included in the gross estate
est ate for Philippine estate tax computation.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect
186.
Statement 1: This deduction is allowed by law to lessen the harshness of international double
taxation where the same estate is being subject to both the foreign estate tax and the Philippine
Statement 2: Nonresident alien decedents are not entitled to estate tax credit.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect
187.
Statement 1: An estate tax credit is allowed as deduction from the estate tax due if the
decedent at the time of his death was a resident citizen of a foreign country which at the time o
off
his death did not impose an estate tax of any character in respect of intangible personal
property of citizens of
the Philippines not residing in that foreign country.
Statement 2: An estate tax
t ax credit is allowed as deduction from the estate tax due if the laws of t
he foreign country of which the decedent was a resident citizen at the time of his death allow a
similar exemption from estate taxes of every character, in respect of intangible personal
property owned by citizens of the Philippines not residing in that foreign
fo reign country.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both
statements are
are incorrect
correct
d.
Both statements
188.
Which of the following is not allowed with tax credit
cr edit for payments of estate tax on foreign
fore ign
countries?
a. A resident alien
b. A non resident citizen
c. An alien who was a resident of his own country at the date of death
deat h
d. An American residing in the Philippines at the date of death
189.
Statement 1: tax credit
cre dit for foreign estate tax is allowed to minimize
m inimize the effect of multiplicity of
situs.
Statement 2: Tax credit for foreign
for eign estate is allowed to minimize the effect of the indirect
double taxation.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect
Tax Credit – Foreign Country Only
Next two (2) questions are based on the following:
A citizen-decedent died in 2018 with the following data:
Gross estate
Allowable deductions
(excluding standard deduction)
Estate tax paid
190.
Philippines
P14,200,000
P6,400,000
USA
P4,400,000
2,200,000
150,000
How much is the estate tax payable in the Philippines assuming the decedent is a non-resident
citizen?
c. P168,000
d. P300,000
a. P132,000
b. P150,000
191.
How much is the estate tax payable in the Philippines assuming the decedent is anon resident
alien?
a. P150,000
b. P168,000
c. P300,000
d. P438,000
Tax Credit – More than 1 Foreign Countries
192.
Mr. Bombo, Filipino died on April 10,2016 with the following data:
Gross Estate
Allowable Deductions Estate tax paid
Philippines
China
Japan
USA
P1,875,000
300,000
450,000
600,000
1,575,000
150,000
525,000
225,000
The estate tax payable in the Philippines is:
P3,750
18,000
a. P9,000
b. P13,500
c. P13,250
d. P14,000
Compliance Requirements
Requirements
193.
Statement 1: The estate tax imposed under the Tax Code shall be paid by the executor or
administrator before the delivery of the distributive share in the inheritance to any heir or
beneficiary.
Statement 2: The executor or administrator of an estate has the primary obligation to pay the e
state tax but the heir or beneficiary has subsidiary liability for paying that portion of the estate
corresponding to his distributive share in the value of the total net estate.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect
194.
Statement 1: If the decedent died before 2018, a notice of death is always required to be filed.
Statement 2: If the decedent died before 2018, the notice of death shall be filed by the
executor, administrator or any of the legal heirs within two (2) months after the dece
decedent's
dent's
death, or within like period after qualifying as such executor or administrator.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect
195.
Lolo Sot died in 2017 leaving a gross
gr oss estate amounting to P150,000 only. No estate
est ate tax is due
based on the tax code. The gross estate is composed of a second hand car worth P80,000,
shares of stocks valued at P50,000 and P20,000 time deposit. The administrator believes only
notice of death should be filed since the value of the gross estate is e
exempt
xempt from tax. What will
you tell him?
a. Notice of death and estate tax return have to be filed because the gross estate exceeds
P20,000 and when the gross estate consists of registered or registrable properties, estate
tax is required to be filed regardless of the value of the gross estate.
b. Only notice of death is required to be filed because the gross 'estate exceeds P20,000
c. estate tax return is required to be filed only when the gross estate exceeds P200,000
and/or there is estate tax due
d. Neither notice of death nor estate tax return need to be filed in this particular case.
e. only estate tax return has to be filed because the filing of the return
r eturn also serves as of death.
196.
A decedent died before the effectivity
e ffectivity of the TRAIN Law, under which o
off the following situations
an estate tax return is not required to be filed?
a. Transfers which are subject to estate tax.
b. The gross value of the estate exceeds P200,000.
c. The estate consists of registered or registrable properties for which a clearance from the
BIR is required as a condition
c ondition precedent fort he transfer of owner
ownership
ship
d. The gross value of the estate consisting of non-registrable properties does not exceed
P200,000 and the deductions amount to PI 50,000.
5 0,000.
197.
A decedent died upon the effectivity
effec tivity of the TRAIN Law, under which of the following situations
an estate tax return is not required to be filed?
a. Transfers which are subject to estate tax.
b. The estate consists of registered or registrable properties for which a clearance from the
BIR is require mas a condition precedent fort he transfer of ownership.
co nsisting of non-registrable properties does not exceed
c. The gross value of the estates consisting
d. None of the above
198. Who shall file the estate tax return?
a.
Executor, or administrator, or any of the
t he legal heirs
b. Creditors of the decedent
c. Personal secretary he decedent
d. Debtors of the decedent
199.
The Estate Tax Return shall be filed and payment made with
a. An Authorized Agent Bank (AAB) of the Revenue District Office (RDO) having jurisdiction
over the place of residence of the decedent at the time of his/her death.
b. If there is no AAB within the residence of the decedent, the Estate Tax Return must 'be filed
and the payment made with the Revenue Collection Officer or duly Authorized City or
Municipal Treasurer of the RDO having jurisdiction over the place of residence of the
decedent.
c. If the required flier has no legal residence in the Philippines, the Estate Tax return will be
filed with the Office of the Commissioner or in the Philipp
Philippine
ine Embassy or Consulate in the
country where the decedent was residing at the time of his or her death.
d. All of the above
200.
If the decedent died before 2018, the estate tax return should be filed
a. At the time of death
b. Within 30 days after death
c. Within six months after death
d. Within one (1) year after death
201.
If the decedent died on or after January 1, 2018, the estate tax return should be filed
a. At the time of death
b. Within 30 days after death
c.
Within six months after death
d. Within one (1) year after death
202.
An estate tax return is not necessary in the following instance
a. Donation of P50,000 cash
b. Transfer of motor vehicle valued at P130,000
c. Both "a" and "b"
d. Neither "a" nor "b"
203.
Statement 1: The Commissioner or any of the Revenue Officer authorized by him pursuant to
the tax code shall have the authority to grant, in meritorious cases, a reasonable extension not
exceeding thirty (30) days for filing the return
r eturn
Statement 2: The application for the extension
exte nsion of time to file the estate tax return must be filed
With the RDO where the estate is required to secure its TIN and file tax return of the estate.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect
204.
Extension for the payment of the estate tax shall be allowed on the ground of:
a. Undue hardship upon the estate or any of the heirs
b. Negligence
c. Intentional disregard of rules and regulations
d. Fraud
205.
The Commissioner, on meritorious cases, may extend the time for payment of estate tax:
In the case the estate
In the case the estate
is settled judicially
is settled extra-judicial
a.
5 years
5 years
b.
2 years
2 year
c.
5 years
2 years
d.
2 years
5 years
206.
When an estate is settled extra-judicially, the estate tax return may be filed and the estate tax
paid
a. By any of the heirs, with a right of reimbursement from the other heirs.
b. Only by the heir with authority from the other heirs.
c. By each of the heirs, the payment being for his distributive share in the estate tax.
d. The eldest of the heirs and closest in relationship to the decedent.
207.
A died leaving a house and lot to B on March 31, 2012 which w
was
as questioned by C and it is under
litigation but, subsequently, the parties executed an extra-judicial settlement. The last day for
filing the estate tax return is:
c. September 30, 2012
a. April 30, 2013
b. April 30, 2016
d. October 30, 2012
208.
The last day for the payment of estate tax may be extended, until;
c. September 30, 2014
a. April 30, 2015
d. April 30, 2018
b. April 30,2018
209.
A died leaving a house and lot to B on April 1, 2018 which was questioned by C and it is under
litigation but, subsequently, the parties executed an extra-judicial settlement. The last day for
filing the estate tax return is:
a. April 30, 2018
b. April 30,2018
c.
d.
October 1, 2018
March 31, 2019
210.
The last day for the payment of estate tax may be extended, until;
a. October 1, 2018
b. March 31 ,2021
c.
d.
October 1, 2021
March 31, 2022
211. A resident citizen died September 3, 2017. An administrator was appointed on September 15,
2017. The inventory taking of the decedent's properties was completed on October 10, 2017
2017.. When
should the estate tax return be filed?
a. November 3, 2017
b. March 3, 2018
c. March 15, 2018
d. Sept 2, 2018
212.
In filing the estate tax return of a decedent who died prior to the effectivity of the TRAIN Law, a
CPA certificate is required when:
a. Gross estate exceeds P 2,000,000
b. Gross estate exceeds P 5,000,000
c. Gross estate exceeds PI 0,000,000
d. Gross estate reaches P 2,000,000
213.
In filing the estate tax return under the TRAIN Law, a CPA certificate is required when:
a. Gross estate exceeds P2,000,000
b. Gross estate exceeds P5,000,000
c. Gross estate exceeds PI 0,000,000
d. Gross estate reaches P 2,000,000
214.
One of the following is not a content of the statement certified to by a CPA:
a. Itemized asset of the decedent with their corresponding gross value at the time of his
death or in case of non-resident alien of that part of his gross estate situated
situate d in the
Philippines
b. Itemized deductions from gross estate
c. The amount of tax due whether paid or still due and outstanding
d. Certified copy of partition
215.
Statement If an extension for payment of estate tax is granted, the commissioner or his duly
may require the executor, or administrator, or beneficiary, as the case may be, to furnish a bond
in such amount, not exceeding double the amount of the tax.
Statement 2 Any amount paid after the
t he statutory due date of the e
estate
state tax, but within the
extension period, Shall be subject to interest but not to surcharge.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect
216.
Which of the following is not correct?
a. When a compulsory heir is given by will less than
t han his legitime, the provisions of the will
should be modified in such a way that he will receive
re ceive his legitime.
b. The CIR may examine the bank deposit of a decedent for the purpose of determining
dete rmining his
c.
gross estate even the estate
est ate did not request for a compromise on the ground of financial
The sharing of heirs in testamentary succession must satisfy the rules on legitime.
d. If an extension to pay the estate tax is granted, the Commissioner or his duly authorized
representative may require the administrator, or executor,
e xecutor, or beneficiary, to furnish a bond
in such amount exceeding double the amount of the tax and with such sureties as the
Commissioner deems necessary, conditioned upon the payment of said tax in accordance
with the terms of the extension.
217.
Statement 1: Any amount paid beyond the statutory due date of the tax, but within the
extension period, shall be subject to interest but not to surcharge.
Statement 2: No extension for payment of estate tax shall be granted where the request for
extension is by reason of negligence, intentional disregard of rules and regulations, or fraud on
the part of the taxpayer.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect
218.
In case of a resident decedent, the administrator of executor shall register the estate of the
decedent and secure new TIN from the the
a. Office of the Commissioner
b. RDO where the administrator or executor is registered.
c. RDO where the decedent was domiciled at the time of his death.
d. Duly authorized treasurer of the city or municipality where the decedent is domiciled at the
time of his death.
219.
Can the yes, estate in case tax the be paid available in installment?
a. Yes in case the available cash of the estate is not sufficient to pay its estate tax liability.
b. Yes, at the option of the heirs with corresponding interest charges.
c. No, tax is the lifeblood of the State, hence, collection cannot be delayed under any
circumstance.
d. None of the above
220.
Which of the following is not correct regarding the estate of a decedent who died before 2018?
a. No judge shall order a distribution of any part of the estate to an heir without a
certification from the BIR that the tax has been paid.
b. A bank shall not allow the co-depositor of a deceased to withdraw from the joint bank
account without a certification from the BIR that the tax has been paid.
c. No Register of Deeds shall transfer to any heir the title of a decedent to real property
without certification from the BIR that the tax has been paid.
d. None of the above
221.
A decedent who maintains a bank account died in March 12, 2018. Which of the following
statements is correct?
Statement 1: If a bank has knowledge of the death of a person, who maintained a bank account
alone, or jointly with another, it shall allow the withdrawal from said deposit account, subject to
a final withholding tax of 6% of the amount to be withdraw, provided, that the withdrawal shall
only be made within one year from the
t he date of said decedent.
Statement 2: In all cases, the final tax withheld shall not be refunded, or ccredited
redited on the tax due,
on the net taxable estate of the decedent.
a.
b.
c.
d.
222.
Only statement 1 is correct
Only statement 2 is correct
Both statements are correct
Both statements are incorrect
Which of the following statements is correct?
a. There shall not be transferred to any new owner in the books of any cor
corporation,
poration, sociedad
anonima, partnership, business, or industry organized or established in the Philippines any
share, obligation, bond or right by way of gift
g ift inter-vivos or mortis causa, legacy or inheritance,
unless an eCAR is issued by the Commissioner or his duly authorize representative.
b. In instances where the deposit accounts have been duly included in the gross estate of the
t he
decedent and the estate tax due thereon paid, the executor, administrator, or any of the legal
heirs shall present the eCAR issued for the said estate prior to withdrawing from the bank
deposit account.
c. The withdrawal describe in letter b shall no longer be subject to the 6% withholding tax by the
bank.
d. All of the above