W died on January 31, 2019, survived by her widower H and their one and only child A after 10 years of marriage. The following properties were gathered for estate tax purposes:

Residential lot, inherited by W when she was still unmarried P 1,000,000

Residential house, built out of H's salary savings during marriage 600,000

Agricultural land, donated to W by her aunt on June 1, 2017 with FMV at that

time of P2,000,000 (mortgage assumed by W: P1,700,000, of which she

paid P1,450,000 before she died) 2,480,000

Agricultural land, from W's uncle who appointed W as trustee in his will, to be

transferred to A upon W's death 750,000

Car, purchased out of W's retirement benefits from GSIS 500,000

Shares of stock of Japanese company, 80% of its business is located in the

Philippines (estate tax paid to the Japanese government: P10,000) 150,000

Accounts receivable, from insolvent debtor 20,000

Life insurance proceeds, with H as its beneficiary 700,000

Jewelry of H 50,000

The deductions claimed are the following:

Funeral expenses P 175,000

Medical expenses within 1 year prior to W's death 700,000

Attorney's fee for extra-judicial settlement of W's estate 80,000

Unpaid mortgage on residential house and lot 200,000

Promissory note duly signed by W but not notarized 25,000

Unpaid real property tax for 2019 24,000

Partial loss on residential house from fire occurring on August 1, 2019 100,000

1. How much is the total community properties that shall form part of the gross estate of the decedent?
2. How much is the exclusive properties that shall form part of the gross estate of the decedent?
3. How much is the total community deductions?
4. How much is the total exclusive ordinary deductions?
5. How much is the net taxable estate?

Answer rating: 100% (QA)

Estate of W Property Classification and Deductions Community Properties Partially Residential house ... View the full answer