Taxation, 2019 Bar — Question A.5

QUESTION

A, a resident Filipino citizen, died in December 2018. A's only assets consist of a house and lot in Alabang, where his heirs currently reside, as well as a house in Los Angeles, California, USA. In computing A's taxable net estate, his heirs only deducted: 1. P10,000,000.00 constituting the value of their house in Alabang as their family home; and 2. P200,000.00 funeral expenses because no other expenses could be substantiated. (a) Are both deductions claimed by A's heirs correct? Explain. (2%) (b) May a standard deduction be claimed by A's heirs? If so, how much and what proof needs to be presented for the same to be validly made? (2%) (c) In determining the gross estate of A, should the heirs include A's house in Los Angeles, California, USA? Explain. (2%)

You can write freely without an account. Sign in to reveal the suggested answer and track your progress.