DEDUCTIONS

FROM GROSS
ESTATE
 B. TRANSFER TO PUBLIC USE

* Dispositionsin a last will and

testament or transfers to take eff ect
after the death in favor of the:
government of the Philippines
any political subdivision thereof
(e.g. barangay, province, city
municipality)
* for exclusively public purposes

Note: The transfer of property for Public Use should be

through a testamentary succession not merely by oral
C. VANISHING DEDUCTIONS
 SPECIAL DEDUCTIONS

A. STANDARD DEDUCTIONS
-A deduction in the amount of One Million Pesos
(P1,000,000.00) shall be allowed as an additional
deduction without need of substantiation.

B. FAMILY HOME
-Requires all of the following:
a.) The fair market value or zonal value (which
ever is higher!) forms part of the gross estate.
b.) Certifi cation by the Barangay captain as the
actual residence at the time the person died.
c.) The deductible amount is only up to P1,000,000
 CONTINUATION OF FAMILY HOME

The benefi ciaries of a family home

are:
1. The husband and wife, or the head of
a family.
2. Their parents, ascendants,
descendants including legally adopted
children, brothers and sisters, whether
the relationship be legitimate or
illegitimate, who are living in the family
home and who depend upon the head of
the family for legal support. (Art. 154,
 SPECIAL DEDUCTION

C. MEDICAL EXPENSES
* Requisites for deduction:
1.incurred by the decedent within 1
year prior to his death and
2.substantiated by receipts
* The amount allowed as a deduction would
bewhichever is lowerof:
1.actual medical expenses incurred by
the decedent
2.P 500,000
 SPECIAL DEDUCTION

D. AMOUNT RECIVED BY HEIRS (UNDER R.A.

4917)

Any amount received by the heirs from the decedent

- employee as a consequence of the death of the

decedent-employee in accordance with Republic Act

No. 4917: Provided, That such amount is included in

the gross estate of the decedent.

 SHARE OF SURVIVING SPOUSE IN THE
NET CONJUGAL/ COMMUNITY ESTATE
(50%)
The share of the surviving spouse in the net
conjugal or net community property is50% of
the net estate.

After deducting the allowable deductions

applicable to the conjugal or community
properties, the share of the surviving spouse
must be removed
EXERCISES:

1. FILISIMO LAYON, a filipino decedent, owned

the following
properties until his death:

House and lot in Malaysia P 3,000,000

Family home in Balingasag 1,200,000
Family land in Bukidnon donated to 1,500,000
him during Marriage
Personal properties 300,000

THE TOTAL AMOUNT OF GROSS ESTATE IS

__________________.
ANSWER:
EXERCISES:

2. Gresilda Fuentes, a Filipino decedent, has

the following information for estate tax
computation:
Gross Estate P 2,000,000.00
Actual Funeral expenses 180,000.00
Medical expenses 520,000.00
Claims against insolvent
person, 60% insolvent 100,000.00

The total amount of allowable ordinary

deduction from gross estate is
__________________.
ANSWER:
EXERCISES:

3. Kasandra Magsibang, Filipino decedent, left

her house and lot of P 5,000,000. The property
is her family home but still mortgaged to the
bank with unpaid balance of P 4,000,000. She
is single and had lived her life to the fullest.
The Total Allowable deductions from the Gross
Estate is __________________.
ANSWER: