Gross Estate Flashcards
Justification of imposition of estate tax
Benefit received theory
Privilege or partnership theory
Ability to pay theory
Redistribution of wealth
Situs of real property and tangible personal property
Location of the property
Situs of shares, franchise, copyright and the like
Where the intangible property is exercised regardless of where the certificate is stored
Situs of receivables
Residence of debtor
Situs of bank deposit
Location of the depository bank
Valuation of gross estate in general
FMV upon death
Valuation of real property
Zonal value or assessed value, whichever is higher
Valuation of personal property
FMV upon death
Valuation of unlisted common shares
Book value per share
Valuation of unlisted preference shares
Par value per share
Valuation of listed shares
Arithmetic mean between the highest and lowest quotation at a date nearest the death
Valuation of units of participation in any association
Bid price nearest the time of death published in any newspaper or any publication
Valuation of Rights to usufruct
Based on the Basic Standard Mortality Table taking into account the probable life of the beneficiary
Exclusions under Sec. 85 and 104 of the Tax Code
Exclusive property of the surviving spouse
Property outside the PH of a non-resident alien
Intangible personal property of non-resident alien if there’s reciprocity
Exclusions under Sec. 82 of the Tax Code
Merger of usufruct in the owner of the naked title
Transmission or delivery of the inheritance or legacy (under SPA and fiduciary to fideicommissary)
Transfer to social welfare, cultural, and charitable institutions (administrative expenses must not be more than 30%)
Exclusion under Special Laws
GSIS SSS PH and US for war damages USVA World War II damages Retirement benefits PERA assets Compensation for COVID-19 (health workers)
Composition of gross estate
Property owned by the decedent that are actually and physically present in his estate at the time of death
Property not physically in the estate but still subject to estate tax
Miscellaneous Items
Property not physically in the estate but are still subject to payment of estate tax
Transfers in contemplation of death
Revocable transfer
Transfer under GPA
Transfer for Insufficient Consideration
Miscellaneous Items
Claims against insolvent persons
Proceeds of Life Insurance
Estate tax rate
6%
What is the gross value of the estate tax when it shall be supported with a statement duly certified to by a CPA?
Exceeding 5M
What should be included in the CPA certification?
Itemized assets
Itemized deductions
Amount of tax due
Allowable period of filing the return without incurring surcharge/penalty and interest
One year after death of the decedent
Extension to file the estate tax return
Not exceeding 30 days
