MODULE 1- Transfer Taxes-Estate Taxation

Reference:
Title III, National Internal Revenue Code of 1997, as amended by RA 10963 (Sections
84-104)

A. Basic Principles of Estate Tax

B. Determination of Gross Estate

Classification of decedent, Section 85, NIRC

Velilla vs. Posadas, 62 Phil 624
Coll vs. Lara, 102 Phil 813

Rule of reciprocity, Section 104, NIRC

Situs or location of property (real property, tangible, intangible)

Section 104, NIRC

Specific items includible in the gross estate

Section 85 and 104, NIRC

Taxable transfers
Section 85, NIRC
U.S. vs. Wells, 283 US 102
Dizon vs. Posadas, 57 Phil 108

Proceeds of life insurance

Section 85, NIRC
Article 116, Family Code
Del Val vs. Del Val, 29 Phil 534

Claims against insolvent persons

Properties of spouses
Art. 75, 117,109, 88, 92, Family Code
Section 85(H), NIRC

Exempt acquisitions and transmissions, Section 87, NIRC

Exemptions under special laws

C. Valuation of the Estate

Valuation date, Section 88(B), NIRC, Art 777, Civil Code

Basis of valuation, Section 88, NIRC

Manila Railroad Co. vs. Velasquez, 32 Phil 286

Valuation, Sections 88, 6(E), NIRC

C. Deductions from gross estate, Section 86, NIRC

D. Computation of net estate and estate tax, Section 84, NIRC

E. Tax credit for foreign estate tax, Section 86, NIRC

F. Notice of death, return, payment of tax, sanctions

Sections 90-97, NIRC

G. Practical exercise