How much is the Estate Tax Payable?Mr. Pim Musay, Filipino and married died in 2021, leaving his estate in favor of hissurviving spouse.The following information were made available:Real property in Baguio City was acquired during marriage. Said property is supportedby a barangay certification that the spouses resided in this property at the time of Mr.Musay's death. The fair market value of this property as per latest tax declaration isP15,000,000 while the zonal valuation as of the time of death is P20,000,000. Said realproperty was held as a mortgage in a loan applied by the spouses. As of the time ofdeath, the outstanding balance of the mortgage payable amounted to P5,000.000.Real property in Urdaneta, Pangasinan inherited by Mr. Musay during marriage, two anda half years ago, from his late father. The fair market value per tax declaration as of hisdeath is P8,000,000 while the zonal valuation is P12,000,000. Said property waspreviously taxed at a value of P10,000,000 when Mr. Musay inherited the property.Real property in San Juan, La Union, donated to Mrs. Musay, 10 years ago (beforemarriage) by his parents-in-law. The fair market value as per latest tax declaration as ofthe time of Mr. Musay's death is P3,000,000 while the zonal valuation is P4,000,000.Other exclusive properties of Mr. Musay amounting to P1,000,000. Other properties ofMr. and Mrs. Musay - P3,000,000. Funeral expenses incurred during the wake and burialof Mr. Musay amounted to P1,900,000.,000P10,250,000P225,000P8,750,000P3

It is a tax imposed on the transfer of the estate of a deceased person. It is a tax on the total…

Answered: Mr. Pim Musay, Filipino and married…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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50. Mr. O, Filipino, married, died on August 1, 2018, three years after his marriage to Mrs. O. He left the following: a. Property inherited by Mr. O from his father who died February 14, 2013 b. Property inherited by Mrs. O from her father who died February 14, 2014 c. Property inherited by Mr. O from his mother who died February 14, 2015 d. Property inherited by Mrs. O from her mother who died February 14, 2016 c. Property acquired thru the labor of P3,000,000 1,200,000 1,800,000 1,400,000 Mr. O Mrs. O Mr. & Mrs. O (family bome) 2,000,000 1,500,000 2,400,000 1,600,000 f. Other personal property Deductions claimed by the estate: a. Funeral expense b. Unpaid mortgages on property in letters: a 500,000 c. Claims against the estate d. Accrued taxes (before the death of Mr.O) 220,000 b. 300,000 c. 180,000 d 200,000 170,000 80,000 Determine the net taxable estate assuming 1. Conjugal partnership of gains 2. Absolute community of property
The widow of an individual received a death benefit from his employer of $25,000. She must include the $25,000 in income in the year of receipt. True or False
Randy established a trust, reserving in himself the power to terminate the trust if he is not satisfied with its operation. After two years, the power to terminate the trust expires. Randy transferred commercial real estate into the trust and specified that the income be payable annually for the benefit of his adult daughter, Michelle. Randy died one year after creation of the trust instrument. One estate tax implication for Randy of this trust is that the trust property is A) included in his estate because a family member is receiving a benefit from the trust. B) not included in his estate because a transfer for the benefit of a minor is exempt from tax. C) included in Randy's estate because he still had the power to terminate the trust at his death. D) not included in his estate because the power to terminate the trust eventually expires.
In 2001, Heather created a trust with income to her partner Gina for life, remainder to her daughter, Sonia, if living, and if Sonia is not living then to Heather if Heather is living, and if Heather is not living, then to granddaughter Beth or Beth's estate. In 2011, while all parties remain alive, Heather transfers her contingent interest to Beth, relinquishing all rights and interest in the property. In 2013, Heather dies, predeceasing Gina, Sonia, and Beth. What are Heather's estate tax consequences, if any? No Inclusion Inclusion in Grantor's gross estate pursuant to 2033 Inclusion in Grantor's gross estate pursuant to 2035 Inclusion in Grantor's gross estate pursuant to 2036 Inclusion in Grantor's gross estate pursuant to 2037 Inclusion in Grantor's gross estate pursuant to 2038
Aishwarya's husband passed away in 2021. She needs to determine whether Jasmine, her 17-year-old stepdaughter, who is single, qualifies as her dependent in 2022. Jasmine is a resident but not a citizen of the United States. She lived in Aishwarya's home from June 15 through December 31, 2022. Aishwarya provided more than half of Jasmine's support for 2022. Required: Is Aishwarya allowed to claim Jasmine as a dependent for 2022? Would Aishwarya be allowed to claim Jasmine as a dependent for 2022 if Aishwarya provided more than half of Jasmine's support in 2022, Jasmine lived in Aishwarya's home from July 15 through December 31 of 2022, and Jasmine reported gross income of $5,000 for the year? Would Aishwarya be allowed to claim Jasmine as a dependent for 2022 if Aishwarya provided more than half of Jasmine's support in 2022, Jasmine lived in Aishwarya's home from July 15 through December 31 of 2022, and Jasmine reported gross income of $2,500 for the year?
Val died on May 13, 2021. On July 3, 2018, she gave a $400,000 lite insurance policy on her own lite to son Ray. Because the value of the policy was rela- tively low, the transter did not cause any gift tax to be payable. a. What amount was included in Val's gross estate as a result of the 2018 gift? 6. What amount was included in Val's gross estate if the property given was land instead of a life insurance policy? C. Refer to Part a. What amount would have been included in Val's gross estate if she instead gave Ray the policy on April 30, 2017?
Assume Nathalie dies today. Based on their current situation, what asset would be subject to probate fees?a) nathalie's spousal and individual RRSPb) nathalie's cottagec) Nathalie 50% ownership interest in the couple's principsi residence and their joint investment account.d) nathalie's death will not result in tax liability this year.
Your client, age 65, has a gross estate valued at $300,000. His wife, age 58, has a gross estate valued at $150,000 and is financially competent. His objectives are to: leave all property to his wife in as simple a manner as possible; allow his wife to determine the ultimate beneficiaries of all his property; and make maximum use of the unlimited marital deduction. Which one of the following transfers is most appropriate for achieving the client's objectives? A)An estate trust with his wife as beneficiary B)Life income to his wife from a trust funded with the exemption equivalent amount, with the remainder to his designated beneficiaries C)A combination qualified terminable interest property (QTIP) trust and family bypass trust with his wife as income beneficiary D)An outright bequest of the entire estate to his wife
38. Which of the following are interests that must go through probate? A residence that goes to the decedent's spouse and children according to the intestate succession statute Shares of stock bequested to the decedent's brother A bond that is community property, which passes to the surviving spouse Life insurance proceeds payable to the decedent's spouse

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Mr. Pim Musay, Filipino and married died in 2021, leaving his estate in favor of his surviving spouse. The following information were made available: