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DT and ET - PRATICE QUESTIONS
Business Finance (University of Caloocan City)
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DONOR’S TAX
Example 1:
Mr and Mrs. K made the following donations in 2018. Determine the total donor’s tax payable on each
date of donation.
a. February 14 – to a legitimate son, a piece of land with FMV of P400,000
b. May 14 – to a legitimate daughter, house and lot with FMV of P1,000,000 on account of
marriage
c. June 14 – to the brother of Mrs. K, P200,000
d. September 14 – To the beautiful secretary of Mr. K, when she took care of Mr. K while Mrs. K
was vacationing in USA, jewelry worth P300,000
e. October 14 – To the good-looking driver of Mrs. K who accompanied her on her trip to USA,
diamond ring worth P500,000
f. December 14 – to daughter of Mr. K’s secretary, pieces inherited by Mr. K during marriage, with
FMV of P400,000
g. December 25 – to a legitimate son, a residential house and lot with FMV of P1,200,000 but
subject to the condition that the son will assume mortgage indebtedness in the amount
P400,000
Example 2:
On January 15, 2020, Jose sold a vacant lot held as capital asset for P600,000 to his brother-in-law.
The assessed value and zonal value were P750,000 and P1,000,000 respectively. What is the tax
implication? If the lot was used in business, what is the tax implication?
Example 3:
Rizal donated three times to Bracken, his wife, during the calendar year. Details are as follows:
 Brand new car on January 5, 2018; FMV is P3,200,000
 On Bracken’s birthday, February 22, 2018, a farmland valued at P12,300,000
 On occasion of anniversary on June 11, 2018, a bouquet of roses with market value P1,200
Rizal also gave P21,000,000 cash to his dear friend Blumentritt on February 14, 2018.
How much should be included in gross gift?
Example 4:
Mocha is excited with her new job as the Assistant Secretary of the Presidential Communications
Office under the Office of the President. News broke of her appointment and she received the
following gifts:
 From her friend Bong Go, who gave grammar books with value P23,500
 From Pinya Paul, chief marketing officer of DOLE, a cash gift of P400,000 in line with his
request of featuring the pineapple product of DOLE in the website of PCOO
 Pinya Paul also gave P200,000 to Mocha’s daughter and P300,000 to Mocha’s friends
How much is Bong Go and Pinya Paul’s gross gift?
Example 5:
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Caramel donated to the following institutions:
 P3,000,000 cash and equipment to Duterte’s Kitchen, a nonprofit institution dedicated to
providing the homeless with free food
 P4,000,000 to Duterte Online Warriors, a nonprofit institution that used P1,800,000 of the
donation for administrative purposes
 P2,000,000 cash to Duterte Youth Inc, a youth nonprofit organization which pays dividends to
its stockholders
 P6,000,000 to Presidential Communications Office, a government agency
 P2,500,000 to Nescafe Corporation, a corporation for profit
ESTATE TAX
Example 1:
A made the following transfers inter vivos.:
What is the amount to be included in gross estate?
Example 2:
Z, a resident citizen, died in 2019, leaving the following:
What is the estate tax due after tax credits?
Example 3:
Mr. O, Filipino, married, died on August 1, 2018, three years after his marriage to Mrs. O. He left the
following:
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Deductions claimed by the estate
Determine the taxable estates under CPG and ACoP.
Example 4:
Mr. Y, a non-resident alien residing in USA, died in June 2018 leaving the following:


The land in Manila when inherited 3 ½ years ago had a value of P2,400,000 with a mortgage
thereon of P400,000 which was paid prior to Mr. Y’s death
The land in Makati when inherited 4 ½ years ago, had a value of P1,500,000.
Determine the taxable net estate.
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