Transfer and business taxes by ampongan 6th sol man 6

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Transfer and business taxes by ampongan 6th sol man 6

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CHAPTER – DISCUSSION QUESTIONS a Yes The fact that there are two successors to the property does not affect the taxability of the transfer Since Helena exercised her right to transfer the property, it is subject to tax b The merger of the usufruct into the naked title is not subject to estate tax The presumption here is that there is only one transfer of property, i.e from Helena to Janina and ultimately the transfer of usufruct to Diana Thus, for purposes of the law, the merger is not considered as another transfer c No, the property subject of merger is limited only to the house being the only subject of succession All fruits that have accumulated belongs to Janina, she being the usufructuary Yes Although there is merger of the usufruct in the ownership of naked title, the transfer in this case is the first transfer from the property owner It is a different situation if the title had already been the subject of a previous succession to which the merger is counted as the second transfer No, the value of the reversionary interest of Santo at death is includible in his gross estate The transfer is taxable as intended to take effect at or after death because the possibility of reversion of Santo makes Santana’s interest conditional as long as Santo lives a Yes, because this is counted as the first and a valid transfer b The succession is a case of a fideicommissary substitution The transfer from Angelica, the testator, to Barbara, the fiduciary heir, then to Criselda, the fideicommissary, is considered as a single transfer only Since the first transfer has been subjected to tax, then the second transfer should be exempt c Although there is no more fideicommissary substitution in this case, the transfer of the ownership of property from Barbara to Diana is a transfer in accordance with the desire of the predecessor Hence, the transfer is still exempt from estate tax d This is not covered anymore by the exemption because the law allows tax exemption on the second transfer only This is exempt from estate taxation because the second transfer is in accordance with the desire of the predecessor The first and the second transfers are counted only as one If the property shall go to Concha, the transfer shall be subject to tax because it has disregarded the desire of the predecessor, as contained in the deed of donation The transfer is made to a charitable institution It shall be exempt from estate tax if only a maximum of 30% of said devise shall be used for administration purposes Otherwise, it shall be subject to estate tax House, Cauayan City Cash Time deposit Jewelries Trimobile Bookstore Stocks, Bayani Corporation Lot, Koronadal City 10 P 1,300,000 25,000 150,000 83,500 70,000 750,000 150,000 500,000 Gross estate P 3,028,500 Notes: The pineapple plantation is a case of a merger of usufruct in the owner of a naked title It is exempt from estate tax The antique collections are the subject of a fideicommissary substitution Therefore the transfer is exempt from estate tax Moreover, it is a case of special power of appointment; hence, not includible in the gross estate The time deposit with Chinabank is a donation to charitable institution to be used exclusively for public purposes Hence, exempt from estate tax The dividends declared by Bayani Corporation shall not be subject to estate tax because the decedent died before the date of record 11 ... estate tax The antique collections are the subject of a fideicommissary substitution Therefore the transfer is exempt from estate tax Moreover, it is a case of special power of appointment; hence,... to be used exclusively for public purposes Hence, exempt from estate tax The dividends declared by Bayani Corporation shall not be subject to estate tax because the decedent died before the date

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  • CHAPTER 6 – DISCUSSION QUESTIONS

  • P 3,028,500

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