Taxation, 2012 Bar — Question V

QUESTION

Spouses Pablo Gonzales and Teresita Gonzales, both resident citizens acquired during their marriage a residential house and lot located in Makati City, which is being leased to a tenant for a monthly rental of P100,000.00. Mr. Pablo Gonzales is the President of PG Corporation and he receives P50,000.00 salary per month. The spouses have only one (1) minor child. In late June 2010, he was immediately brought to the hospital because of the heart attack and he was pronounced dead on June 30, 2010. With no liabilities, the estate of the late Pablo Gonzales was settled extrajudicially in early 2011. a) Is Mr. Pablo Gonzales required to file income tax for 2010? If so, how much income must he declare for the year? How much personal and additional exemption is he entitled to? Explain your answer. (5%) b) Is Mrs. Teresita Gonzales required to file income tax return for 2010? If so, how much income must she declare for the year? How much personal exemption is she entitled to? Explain your answer. (5%) c) Is the Estate of the late Pablo Gonzales required to file income tax return for 2010? If so, how much income must it declare for the year? How much personal exemption is it entitled to? Explain your answer. (5%)

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