PROBLEM 6-36

1) Inherited property of Mr. Dedo

Income from property inherited by Mr. Dedo
Death Benefits under RA 4917
Gross Estate

2) Claims against insolvent persons

Cash (1380000-180000)
Time Deposit
Interest on Time Deposit (2000000 x 18%) x 4/12
Dividend Income
Proceeds of life insurance
House and Lot- Family Home (10M-2M)
Car Trooper
Unpaid Mortgage Payable-under accommodation
Cost of Business Investment
Gross Estate

3) Coffin and Funeral Expenses

Obituary
Mourning apparel of surviving spouse
Cost of burial plot
Burial Ceremony
Total Deductible Funeral Expenses

4) Fees of administrator
Cost of preserving the distributing estate
Total Deductible Judicial Expenses

5) Notes Payable
Accrued Interest Payable
Total Deductible Claims against the Estate

6) Unpaid Mortgage Payable- under accommodation

Unpaid Mortgage Payable on property inherited
Total Deductible Unpaid Mortgage

7) Gross Estate
Deductions

Value Taken
 Less: Mortgage Paid
Initial Basis
Less: Proportionate Deduction
Final Basis
Multiply: Vanishing Deduction Rate
Amount Deductible

8) Share of surviving spouse

(23440000 - 1889000) x 50%

9) Deductible Family Home

10) Medical Expenses Paid

Family Home
Death Benefits under RA 4917
Standard Deduction
Total Special Deductions

11) Communal
Gross Estate 23,620,000
Less: Ordinary Deductions

Funeral Expenses -139,000

Judicial Expenses -110,000
Claims against the estate -440,000
Unpaid Mortagage Payable -500,000
Claims against insolvent
person -300,000
Transfer for public use
Vanishing Deduction
Net estate bef. Special 22,131,000
Deductions
Less: Special Deductions
Net estate bef. Share of
Surviving Spouse
Share of spouse
(22131000 x 50%)
NTE

12) Estate Tax 465,000

Excess 715,454
(4769693 x 15%)
Total Tax Due 1,180,454
13) Share of Surviving Spouse 11,560,500

14) Communal
Gross Estate recog. above 23,800,000
SSS Death Benefits 1,000,000
Total Gross Estate 24,800,000
Less: Ordinary Deductions

Funeral Expenses -89,000

Judicial Expenses -110,000
Claims against the estate -440,000
Unpaid Mortagage Payable -500,000
Prayer expenses after burial -25,000
Autopsy -15,000
Claims against insolvent person -300,000
Unpaid Income tax after death -200,000
Donation to Church
Donation to Relatives
Donation to Intramuros
Transfer for public use
Total Deductions
Net estate bef. Share of 23,121,000
Surviving Spouse
Share of Surviving Spouse
Net estate bef. Tax
Estate Tax
NDE

15) Wife 5,433,349

Two Children 10,866,697
Total 16,300,046
36

6,000,000
1,000,000
3,000,000
10,000,000

300,000
1,200,000
2,000,000
120,000
250,000
3,000,000
8,000,000
2,000,000
500,000
6,250,000
23,620,000

50,000
8,000
6,000
50,000
25,000
139,000

30,000
80,000
110,000

400,000
40,000
440,000

500,000
400,000
900,000

33,620,000
3,889,000

5,000,000
 -200,000
4,800,000
-555,241
4,244,759
80%
3,395,807

11,065,500

1,000,000

500,000
1,000,000
3,000,000
1,000,000
5,500,000

Exclusive Total
10,000,000 33,620,000

-400,000

-2,000,000
-3,395,807 -7,284,807
4,204,193 26,335,193

-5,500,000

20,835,193
-11,065,500

9,769,693
 Exclusive Total
10,000,000 33,800,000

10,000,000 34,800,000

-400,000

-1,000,000
-500,000
-180,000
-2,000,000
-5,759,000
5,920,000 29,041,000

-11,560,500
17,480,500
-1,180,454
16,300,046
7) Deductions
Funeral Expenses 139,000
Judicial Expenses 110,000
Unpaid Mortgage 900,000
Claims against the estate 440,000
Claims against insolvent person 300,000
Transfer for public use 2,000,000
Total 3,889,000

Proportionate Deduction 4800000/33620000

x 3889000
Total 555,241

14) Gross Estate recog. Above 23,620,000

Donation to Intramuros 180,000
Total 23,800,000

Funeral Expenses
Coffin and Funeral Expenses 25,000
Obituary 8,000
Mourning apparel of surviving spouse 6,000
Cost of burial plot 10,000
Burial Ceremony 25,000
Mourning Apparel of relatives and married 15,000
Total 89,000
(50000 x 50%)

(50000 x 10%)