Business Law and Taxation

Business Law and Taxation

This course involves an intensive study of the business and transfer tax system, including the estate tax, the gift tax, and transfer tax. The relationship between these three donative transfer taxes and between the transfer taxes and the income tax is emphasized. The policy underpinnings of wealth transfer taxation and the reason for the recent erosion in its political support.

Answers	Questions
The correct answer is:	It consist of all property owned by a decedent at the time of his death excluding the exclusive properties of the surviving spouse.
all of the above	Which of the following are the exemptions from the gross
estate?
Funeral expense	It is a cost incurred in connection with the internment
or burial of the deceased with official receipts.
TRUE	Estate tax return must be filed within six months from
the decedent's death.
I and II	Which of the following are special deductions to the gross
estate?
all
of the above	Which of the following are additions to ?
all
of the above	Which of the following are allowable special deduction
for family home?
FALSE	The estate tax is based on the value of .
I	Which of the following is true about deductions from the
?
all of the above	Which of the following are ordinary deductions?
all of the above	Which of the following are the inclusions from funeral
expense?
all of the above	Which of the following are the allowable judicial
expenses?
all
of the above	Which of the following are the exemptions from the gross
estate?
all of the above	Which of the following are personal properties?
Gross estate	It consist of all property owned by a decedent at the time of his death excluding the exclusive properties of the surviving spouse.
Estate tax	It is defined as a tax on the right of the deceased person
to transmit his/her estate to his lawful heirs and beneficiaries at the time of
death and certain transfers which are made by law as equivalent to testamentary
disposition.
I	Which of the following is true about deductions from the
?
55,000	Sharon De Ville's is 3,000,000. Her
executor is claiming the following as funeral expense related to the death of
Carl.
FALSE	Estate tax is a property tax and rather imposed on the
privilege of the transmitting property upon death of the owner.
all of the above	Which of the following are additions to ?
TRUE	The estate tax is 6 percent of the net estate under the
tax reform for acceleration and inclusion.
TRUE	To arrive the net estate, taxpayers simply have to
subtract all the allowable deductions from the .
5%	The funeral expense amount is allowed as deductions shall
equal to the actual expenses incurred or the percentage of the whichever
is lower?
Deductions
TRUE	All donations in the amount of 250,000 or less within the
calendar year will not subject to donor's tax.
Donor's tax	It is a tax on the transfer of gifts without
consideration.
TRUE	Gifts made to the government for public purposes and to
entity created any of its agencies which non-profit organization is not subject
to tax.
FALSE	Donations or gifts between marriage are subject to donor's
tax.
TRUE	The estate tax is 6 percent of the net estate under
the tax reform for acceleration and inclusion.
Deductions	These are the items allowed by law to be deducted to the gross estate in order to arrive at the net taxable estate.
FALSE	Donor's tax is a tax on property but on the action of transmission
of a gift.
TRUE	If the property donated is immovable, it must be in public
document specifying therein the property given.
25,000	Joshua has a funeral expense of 50,000 and the
of his house amounted to 500,000. What is the allowable deduction for the
funeral expense?
5%	The funeral expense amount is allowed as deductions
shall equal to the actual expenses incurred or the percentage of the gross
estate whichever is lower?
I and II	Which of the following are real properties?
TRUE	The estate tax return is filed with the Revenue District
Office having jurisdiction over the place of residence of the decedent at the
time of his death.
Judicial expense	It is allowed deductions incurred for the administration,
inventory taking of assets and settlement of the estate.
1,000,000	The following are the properties of LJ Tizon.
Deductions	These are the items allowed by law to be deducted to
the in order to arrive at the net taxable estate.