CHAPTER 9

9 1. CROSSWORD PUZZLE M I
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C N T A S

S T

S S B
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U A L D D

A B T
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E E

N D A R

A X

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9 2. DISCUSSION QUESTIONS/PROBLEMS
1. Car Condominium unit (zonal value) Gross estate 1,300,000 1,950,000 3,250,000

The zonal value represents the air mar!et value per CI" #hi$h is hi%her than the assessed value o &1,325,000' 2. The assessment made () the Commissioner is erroneous (e$ause the estate o a de$edent shall (e appraised at its air mar!et value as o the time o death' The air mar!et value o the propert) at the time o *a%ol(olan+s death in 2005 #as onl) &,00,000, hen$e, it should (e the proper (asis o valuation or estate tapurposes' 3. 4. .air /ar!et 0alue (121 2 121)3 2 - 3,500 *oo! value per share (&2,000,000 2 500,000)320,000 - 5hares o#ned () 5onia .air mar!et value 12,,450 & 125 500 62,500

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The estate ta- imposed under the Code shall (e paid () the e-e$utor or administrator (e ore the deliver) o the distri(utive share in the inheritan$e to an) heir or (ene i$iar)' 7here there are t#o or more e-e$utors or administrators, all o them are severall) lia(le or the pa)ment o the ta-' The estate ta- $learan$e issued () the Commissioner or the "evenue 8istri$t 9 i$er ("89) havin% :urisdi$tion over the estate, #ill serve as the authorit) to distri(ute the remainin%3distri(uta(le properties3share in the inheritan$e to the heir or (ene i$iar)' The e-e$utor or administrator o an estate has the primar) o(li%ation to pa) the estate ta- (ut the heir or (ene i$iar) has the su(sidiar) lia(ilit) or the pa)ment o 21

that portion o the estate #hi$h his distri(utive share (ears to the value o the total net estate' The e-tent o his lia(ilit), ho#ever, shall in no $ase e-$eed the value o his share in the inheritan$e' 6. a' No, (e$ause the %ross estate does not e-$eed &200,000' (' ;es, (e$ause the %ross value o the estate e-$eeds &200,000' $' ;es' <lthou%h the total value o the estate does not e-$eed &200,000 sin$e it $onsists o a $ar #hi$h is a re%istra(le propert), an estate ta- return must ne$essaril) (e iled' *atu% is

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a' The deadline or the ilin% o an estate ta- return on the estate o 8e$em(er 30, 200, or si-(6) months a ter his death'

(' The latest date that the Commissioner $an set in $ase he de$ides to %rant e-tension o time or ilin% is =anuar) 29, 2002 or e-a$tl) 30 da)s a ter the lapse o the ilin% period' $' 8. a' The heirs, e-e$utor or administrator should ile the return #ith an authorized (an!, or "evenue 8istri$t 9 i$er, or Colle$tion 9 i$er in Ta(a$o Cit)' The deadline or pa)ment o the estate ta- o estate o *anul is Novem(er 3, 200, or si- (6) months a ter his death' This is also the deadline or ilin% the estate tareturn o the de$edent' In $ase the Commissioner de$ides, he $an %rant e-tension o time or pa)ment> Not to e-$eed 5 )ears ? in $ase the estate is settled :udi$iall)' Not to e-$eed 2 )ears ? in $ase the estate is settled e-tra:udi$iall)' 9' @state ta- due <dd> &enalties Aate ilin% and pa)ment (205,200 25B) Interest (205,200 - 20B - 4312) @state ta- pa)a(le & 205,200 51,300 23,910 2,0,110

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EXERCISE 9 3
1' 2' Couse and lot, /anila Cash, re$eiva(les, et$' (400,000 2 15,000) 5hares D(&0'55 2&0'15) 3 2E - 50,000 5hares, 5/C 5hares, <** Aand, /anila Couse, Fuezon Cit) Aand Gross estate The last da) or ilin% the return and pa)ment o ta- #ithout an) penalt) is /ar$h 20, 2009' Con:u%al 2,000,0 00 415,000 25,00 0 10,000 15,000 100,000 1,145,000 GGGGGGGGG 900,00 0 2,410,00 2,260,00 5,000,000 0 0 @-$lusiv e Total

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Aess> 8edu$tions 9rdinar) ? .uneral e-penses (s$hedule 1) Aoans, &N* Aoans, 555 In$ome ta-, =an' 1 to 5eptem(er 20 "eal estate ta*ad de(ts Hnpaid mort%a%e, land, ather(100,000? 60,000) Hnpaid mort%a%e, land, mother (60,000I 35,000) 0anishin% dedu$tion (s$hedule 1) Tot al 5pe$ial ? /edi$al e-penses .amil) home (2,000,000 - J) 5tandard dedu$tion Net estate

190,000 30,000 20,000 23,000 10,000 15,000 10,000 25,000 GGGGGGG 32,,000 669,16, 691,16, (1,022,16 ,) 15,00 0) (1,000,00 0) (1,000,00 0) 1,932,,3 2 1,206,0 00 426,,3 2 15,000'00 1,,116'56 33,116'56 ,,2,6'6 1 3,,64'10 15,300'3 0 125,000 50,000 15,000 190,000 (

Aess> 5hare o survivin% spouse (2,410,000 I 32,,000) - J Net ta-a(le estate Ta- on &500,000 226,,32 - ,B @state ta<dd> &enalties (33,116'56 - 25B) Interest (33,116'56 - 20B - 4312) @state ta- due 5$hedule 1> .uneral e-penses .uneral servi$e 9ther uneral e-penses *urial plot and tom(stone Total 5$hedule 2> 0anishin% dedu$tion 5hares o sto$!, 5/C 5hares o sto$!, <** Aand, /anila Couse, Fuezon Cit) Total Aess> /ort%a%e paid Initial (asis Aess> 8edu$tions (90035,000) /otherKs estate & 15,000 10,000 50,000 ,35,000

Ao#er value & & 10,000 10,000 15,000 10,000 100,000 50,000 1,145,000 ,35,000 935,000 35,000 900,000 63,510

&resent estate

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353,000 *ase "ate 0anishin% dedu$tion 3'

,36,160 ,0B 669,16,

The e-e$utor, administrator or an) o the heirs are %iven t#o (2) months rom the time o death o the de$edent to ile noti$e o death to the *I"' Cen$e, the) have until Novem(er 20, 200, to ile said noti$e ;es, (e$ause the value o the %ross estate is &5,000,000 #hi$h is more than &2,000,000'

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