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DEDUCTIONS
MULTIPLE CHOICE. Select the best answer for each of the following questions.
Encircle the corresponding letter of your choice.
1. If the decedent is married under the conjugal partnership of gains, vanishing deduction
shall be deductible against?
a. Exclusive Properties
b. Conjugal Properties
c. Either exclusive properties or conjugal properties
d. Neither Exclusive nor conjugal Properties
2. Judicial expenses may be deducted from the gross estate of the decedent who died
before 2018. which of the statements provided below is correct?
a. Judicial expenses are costs and expenses incurred during the settlement of the
estate and beyond.
b. Any unpaid amount of judicial expenses need not be supported by a sworn
statement of account issued and signed by the creditor
c. Attorney’s fees incident to litigation incurred by the heirs in asserting their
respective rights cannot be claimed as deduction from gross estate
d. Expenses incurred in the administration and settlement of an estate in extrajudicial
proceedings is not allowed as deduction.
3. Which of the following incurred expenses shall not be deducted under the category
of judicial expenses for a decedent who died before 2018?
a. Expenses for the inventory-taking of the assets comprising the gross estate.
b. Expenses for the administration and payment of debts of the estate.
c. Expenses for the distribution of the estate among the heirs.
d. Expenses as of the last illness of the decedent.
8. Non-resident alien decedent can claim pro-rated amount for the following
deductions, except
a. Taxes
b. Losses
c. Indebtedness
d. Vanishing deductions
10. The amount of funeral expense that may be deducted from the gross estate is
a. 5% of the gross estate or P200,000 whichever is lower
b. Actual funeral expense or P200,000 whichever is lower
c. 5% of the gross estate or the actual funeral expense whichever is lower
d. 5% of the gross estate or the actual funeral expenses or P200,000 whichever
is the lowest
11. Which of the following losses is claimable as deduction against gross estate?
a. Losses claimed in the income tax return of the estate
b. Losses occurring before the death of the decedent
c. Losses occurring after the sixth month of death
d. Losses of separate properties of the decedent.
14. A decedent died on Nov. 1, 2017 leaving a family home composed of the following:
conjugal house worth P800,000, and the land which he exclusively owned valued at
P400,000. he also owns a vacation house at Baguio worth P700,000.
16. The heirs of the decedent compiled the following accrued taxes:
17. Mr. Bueno, a married Filipino citizen, died in a car accident. He left his wife with
their residential house with a fair value of 1,000,000. The lot on which it stands,
having a fair value of 400,000, is Mr. Bueno’s exclusive property. How much is the
allowable deduction for family home?
a. P1,400,000
b. 1,000,000
c. 900,000
d. 700,000
18. A decedent died leaving a P2,500,000 gross estate after deducting his funeral
expenses totaling P180,000. Compute the deductible funeral expense.
a. P125,000
b. P134,000
c. P180,000
d. P200,000
19. The following losses of properties occurred during the settlement of estate of Mrs.
Undoy:
20. The total expenses of the wake of Mr. Uliran totaled P195,000 including P10,000
payment for his unpaid medical expense. Mr. Uliran had P3,000,000 exclusive
properties. Mr. And Mrs. Uliran had P600,000 common properties, Mrs. Uliran also
had P2,000,000 exclusive properties. Compute the deductible funeral expense.
a. P150,000
b. P180,000
c. P185,000
d. P200,000