Estate Tax Flashcards
Decedent whose properties within and without are subject to estate tax
Citizen and Resident Alien
Decedent whose properties within only are subject to estate tax
Non resident alien
Shares of stock of foreign corp is considered within except if
A. If at least 85% of business is in the PH
B. Business situs in PH
Transfer revocable by donor at will during his lifetime
Transfer in contemplation of death so included in estate
Conjugal partnership of gains are for marriage that happened
Before Aug 3, 1988
Conjugal prop vs absolute community
Prop before - conjugal (x) absolute (/)
Fruits from exclusive - conjugal (/) absolute (x)
Donated during - x
Acquired during - /
Valuation of stocks for estate tax purposes
Listed stocks - mean on date of death
Not listed stocks:
Common shares - book value on date of death
Preferred shares - par value
Deduction to gross estate: Transfers for public use
- Made to gov’t
- To social welfare, cultural, ans charitable institution
a. No part of net income inures to benefit of any individual
b. Not exceeding 30% admin purpose
Limit of Family Home
10,000,000
Standard deduction
Citizens and resident aliens: 5,000,000
Non resident aliens: 500,000
Deductions allowed for NRA decedent
Ordinary deductions
Standard deduction: 500,000
Share of surviving spouse
Estate tax return filing
Within 1 yr from death
Can be extended for:
30 days
File: RDO
Estate tax return should be certified by a CPA if
Gross value exceeds 5M
Payment of estate tax
Pay as you file
Extension:
not to exceed 5 yrs. (judicial)
2 yrs. (extrajudicial)
Cash instalment estate tax
File estate tax return: 1 yr
Cash instalments: made within 2 yrs
