Taxation, 2013 Bar — Question MC-XVII

MULTIPLE CHOICE

Mr. Mayuga donated his residential house and lot to his son and duly paid the donor's tax. In the Deed of Donation, Mr. Mayuga expressly reserved for himself the usufruct over the property for as long as he lived. Describe the donated property from the taxation perspective. (1%) (A) The property will form part of Mr. Mayuga's gross estate when he dies (Section 85 (B), NIRC). (B) The property will not form part of Mr. Mayuga's gross estate when he dies because he paid the donor's tax. (C) The property will form part of Mr. Mayuga's gross estate because he died soon after the donation. (D) The property will not form part of Mr. Mayuga's gross estate because it is no longer his.

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