2014 (Taxation) Bar Exam Questions: Question 14

[Answer / discuss the question below. Or see 2014 bar exam Taxation Instructions; 2014 Taxation essay and multiple choice Questions: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28 and 29; See also 2014 Bar Exam: Information, Discussions, Tips, Questions and Results]


Mr. X, a Filipino residing in Alabama, U.S.A., died on January 2, 2013 after undergoing a major heart surgery. He left behind to his wife and two (2) kids several properties, to wit: (4%)

(1) Family home in Makati City;

(2) Condominium unit in Las PiƱas City;

(3) Proceeds of health insurance from Take Care, a health maintenance organization in the Philippines; and

(4) Land in Alabama, U.S.A.

The following expenses were paid:

(1) Funeral expenses;

(2) Medical expenses; and

(3) Judicial expenses in the testate proceedings.

(A) What are the items that must be considered as part of the gross estate income of Mr. X?

(B) What are the items that may be considered as deductions from the gross estate?

One comment

  1. A. All except for the land in alabama.

    B. The deductions for the funeral expenses which is the actual receipts ( paid or unpaid) or 5% of the gross estate whichever is lower but not to exceed 200k.

    Medical expenses incurred but not to exceed 500k.?

    Judicial expenses of the testate proceedings

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