T/F 3 Flashcards
(15 cards)
If the decedent’s loan was contracted within three years before death, a statement of disposition of proceeds must be submitted by the executor or administrator.
True
In a claim against an insolvent person, the insolvency of the debtor must be proven and not merely alleged.
True
The amount included as part of the gross estate in a claim against an insolvent person may be less than the full amount owed.
True
For an unpaid mortgage to be deducted from the gross estate, the fair market value of the mortgaged property must be included in the gross estate in full.
True
Unpaid taxes must have accrued at or before the decedent’s death to be deductible from the gross estate.
True
The amount deductible from the gross estate for a family home may be less than its fair market value, subject to the P10,000,000 limit.
True
The deduction for a family home may be less than P10,000,000, depending on valuation and ownership considerations.
True
If the amount claimed for the family home deduction is less than P10,000,000, the difference is not subject to estate tax but remains part of the taxable estate.
False
Any amount received by heirs from the decedent’s employer under Republic Act 4917 is not deductible from the gross estate since it is already excluded from taxation.
False
For a non-resident alien estate, only property situated within the Philippines is considered for both estate tax and allowable deductions.
True
Estate tax is a tax imposed on the property itself.
Answer: False
The estate tax is an excise tax imposed on the transfer of property from the deceased to the living.
Answer: True
The tax rates and procedures under the TRAIN Law apply to decedents who died before January 1, 2018.
Answer: False
The estate tax is based on the laws in effect at the time of the decedent’s death.
Answer: True
Succession occurs only upon the completion of estate tax payments.
Answer: False
