Professional Documents
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TAX
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Atty. Edwin R. Abella
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a) Revocable beneficiary.
b) Appointed beneficiary is the estate, executor or administrator.
2. Not includable in gross estate:
a) Received from the GSIS and SSS.
F. Taxable Transfers:
1. Transfer in contemplation of death (3-year presumption repealed by
PD 1705, 8/1/80)
2. Transfer with retention or reservation of certain rights.
3. Revocable transfer.
4. Transfers of property under general power of appointment.
a) Existence of general power of appointment held by the decedent.
b) Exercise of such power by the decedent by will or by deed
intended to take effect upon death.
c) Passing of property by virtue of such death.
5. Transfers for insufficient consideration.
a) Covers only the excess of the fair market value over the value
of the consideration.
b) Transfer was made in contemplation of death, otherwise will be
subject to donors's tax,
G. Kinds of Property:
1. By Nature:
a) Real or immovable property.
b) Personal property, tangible or intangible.
2. By Ownership:
a) Exclusive capital or paraphernal property.
b) Conjugal or community property.
H. Valuation of Gross Estate or Gift:
1. Valuation date - Time of death or gift.
2. Basis of valuation:
a) Real properties (land)
1) Prior to August 31, 1969 - Comm. Act 466
2) September 1, 1969 to August 13, 1974 -R.A. 611
3) August 14, 1974 to November 24, 1976 - PD 539
4) November 25, 1976 to December 31, 1985 - PD 1054
5) January 1, 1986 - Present - PD 1994
b) Improvements
1) June 10, 1986 to February 4, 1988 - RAMO 3-86
2) February 5, 1988 to February 18, 1991 - RAMO 1-88
3) February 19, 1991 to 1994 - RAMO 2-91
4) 1994-FMV per TD (Latest TD)
c) Shares of stocks, obligations or bonds - RAMO 1-82
d) Usufruct, annuities, use or habitation - Formula using
American Tropical Experience Table. Beginning January 1, 1998,
the valuation shall take into account the probable life of
the beneficiary in accordance with the latest Basic Standard
Mortality Table.
e) Foreign currency and cash in bank - Peso value at exchange
rate at the time of death.
P50,000.00
3) RA 7499 (July 28, 1992)- 5% of gross estate but not exceeding
P100,000.00.
4) RA 8424 (January 1, 1998)- 5% of gross estate but not
exceeding P200,000.00
b) Judicial expenses.
c) Claims against the estate
d) Claims against insolvent persons
e) Unpaid mortgages or indebtedness
f) Unpaid taxes
g) Losses
2. Transfer for public purposes
3. Vanishing deduction (Property previously taxed)
Requisites:
a) Present decedent must have died within five (5) years from the
date of death of prior decedent or date of gift.
b) The property with respect to which deduction is claimed must
have formed part of the gross estate situated in the Philippines
of the prior decedent or taxable gift of the donor.
c) The property must be identified as the same property received
from the prior decedent or donor or the one received in exchange
therefore.
d) The estate taxes on the gift must have been finally determined
and paid.
e) No vanishing deduction on the property was allowed to the prior
estate