Andres, Joann C. Atty.

Jose Fernando Llave

TAX02 IRRC

Mr. Damon Salvatore died on Nov. 13, 2013 due to a lung cancer. He is a resident citizen of the
Philippines. Mr. Salvatore is married to Elena in 1995 and he has a legitimate child and an
illegitimate child. Elena presented the following properties of Mr. Salvatore:

 Residential house and lot 8,000,000

 *Apartment he inherited from his father 2 years ago 5,000,000
 Rent income from the apartment 300,000
 Property brought to marriage by his wife 2,000,000
 Jewelry acquired by the decedent before marriage 300,000
 CAR inherited by his wife during marriage 2,000,000
 Vacation house acquired during marriage 6,000,000
 Life insurance with estate as revocable beneficiary 500,000

**The inherited apartment has an unpaid mortgage worth 600,000

Elena also showed the following deductions:

 Paid funeral expenses 240,000

 Unpaid judicial expenses 300,000
 Donations to National Government 2,500,000
 Claims against insolvent person 2,000,000
 Unpaid mortgage on inherited apartment 600,000

Prior to the death of Mr. Salvatore, he was hospitalized in WALANG PAG-ASA HOSPITAL for 6
months from March 6, 2013 to August 28, 2013. They incurred the following:

Medicine 320,000
Doctor’s fee 200,000
Foods 90,000
Andres, Joann C. Atty. Jose Fernando Llave
TAX02 IRRC

OBITUARY
A noble and caring soul a pleasing assiduous and dynamic personality like you will never depart
from loved ones. It is a known fact that you have always been a
shining and guiding force for all of us. We promise you that
we will follow the path shown by you. Your virtues and deeds
shall always be a beacon light in our hearts. We miss you a lot
in every moment of our life. We offer our heartfelt
condolences.

Deeply remembered by:

Elena Salvatore (wife)

Stefan Salvatore (brother)
Caroline Salvatore (daughter)
Bonnie Salvatore (daughter)
Damon Salvatore
Andres, Joann C. Atty. Jose Fernando Llave
TAX02 IRRC

CPA Certificate

In order to comply with estate tax rulings and to procure BIR Clearance, we hereby issue this
CPA statement on the itemized assets of the decedent, itemized deductions from gross estate
and the amount due.

Properties:

1. Residential house and lot 8,000,000

2. Apartment he inherited from his father during marriage 5,000,000
3. Rent income from the apartment 300,000
4. Property brought to marriage by his wife 2,000,000
5. CAR inherited by his wife during marriage 2,000,000
6. Vacation house acquired during marriage 6,000,000
7. Life insurance with estate as revocable beneficiary 500,000

Expenses and Obligations:

1. Paid funeral expenses 240,000

2. Unpaid judicial expenses 300,000
3. Donations to National Government 2,500,000
4. Claims against insolvent person 2,000,000
5. Unpaid mortgage on inherited apartment 600,000
6. Medical Expense 500,000
Andres, Joann C. Atty. Jose Fernando Llave
TAX02 IRRC

Exclusive Community Total

Residential house and lot (family home) P8,000,000
Apartment 5,000,000
Income from Apartment 300,000
Jewelry 300,000
Property brought by wife during marriage 2,000,000
Vacation House 6,000,000
Life insurance 500,000
Claims against insolvent ____________2,000,000_______
Gross Estate 7,300,000 16,800,000 24,100,000
Less: Ordinary Deductions
EILTE:
Funeral Expense 240,000
Judicial Expense 300,000
Paid Mortgage (apartment) 600,000
Claims against insolvent debtor 2,000,000
Transfer for Public use 2,500,000
Vanishing deduction 2,702,074.69
Total Ordinary Deduction 5,802,074.69 2,540,000 8,324.074.69
Net Estate before Special Deduction 1,497,925.31 14,260,000 15,757,925.69
Less: Special Deductions
Standard Deduction 1,000,000
Family Home 1,000,000
Medical Expenses 500,000
Total Special Deductions 2,500,000
Net Estate before share of Spouse 13,257,925.69
Less: Share of Surviving Spouse 7,130,000
Net Taxable Estate 6,127,925.69
Andres, Joann C. Atty. Jose Fernando Llave
TAX02 IRRC

Supporting Computation for Vanishing Deduction

Value taken P 5,000,000

Less: Mortgage paid 600,000
Initial Basis 4,400,000
Less: Proportionate deduction
4,400,000
___________ x 5,600,000 1,022,406.64
24,100,000
Final Basis 3,377,593.36
Level of vanishing 80%
Vanishing Deduction 2,702,074.69