CRISTINE JOYCE F.

ASPREC

Exercise 1
Ordinary/Capital FMV, time of Consideration Deemed
transfer received gift
a. Pieces of jewelry for personal use Capital P 500,000 P 300,000 200,000
b. Car sold by a car dealer (bona fide at arm's Ordinary P 800,000 P 500,000 0
length)
c. Furniture sold by furniture dealer Ordinary P 500,000 P 600,000 0
d. Lot leased as parking space Ordinary P 1,000,000 P 500,000 500,000
e. Residential house and lot Capital P 1,500,000 P 800,000 0

Exercise 2
Gross Deduction
gift
1) Real property donated valued at P1,500,000 with unpaid mortgage of P300,000 1,500,000 300,000
assumed by the donee
2) Real property donated valued at P1,200,000 with unpaid real estate tax of P150,000 1,200,000 0
not assumed by the donee
3) Real property donated valued at P1,500,000, the donee agreed to assume the 1,500,000 0
applicable donor's tax of P450,000
3) Real property donated valued at P1,500,000, the donee agreed to assume the 100,000 10,000
applicable donor's tax of P450,000
5) Personal property donated valued at P120,000, the donor did not provide any 120,000 0
diminution on the property donated

Exercise 3
Subject Reason
to
donor's
tax?
a. Husband donated conjugal property with the consent of the wife to Y Admin expense exceed
charity event (charitable institution's administration expenses exceed 30% 30%
of the gifts)
b. Wife donated community property without the consent of the husband Y Moderate gift
on occasion of their legitimate child's birthday (amount of gift is moderate)
c. Husband donated conjugal property, only the husband signed the Deed Y Husband
of Donation
d. Husband gifted his wife a diamond ring on occasion of her birthday N Not moderate gift
e. Wife gifted her husband a branded shirt of account of his birthday Y Moderate gift
(amount is moderate)
f. Husband transferred some of his exclusive property to his wife, transfer N Subject to estate tax
to take effect after his death
g. Surviving spouse renounced his share in the conjugal partnership in Y Renunciation of surviving
favor of the heirs of the deceased spouse spouse
h. An heir renounced his share in the hereditary estate in favor of no one in N Renunciation of heirs
i. Taxpayer donated to the campaign fund of a candidate, duly reported to N Payment of any tax gift
the COMELEC
j. Donee failed to indicate his acceptances of the donation before the N No acceptance by the
transferor done
k. Donee signified his acceptance of the donated property known to the Y Delivery can be done
donor before he died, delivery of the donated property done after the after death
transferor died
CRISTINE JOYCE F. ASPREC

Exercise 4
Total net Gifts in this return P 2,000,000
Less: Deduction (Unpaid mortgage assumed by the done) (500,00)
Total net gifts in return 1,500,000
Add: Net gift during the calendar year
Property in Australia 300,000
Property in USA 200,000 500,000
Total Net Gifts 2,000,000
Less: Exempt Gifts (250,000)
Total net gifts Subject to tax 1,750,000
Applicable donor’s tax rate 6%
Total donor’s tax due P 105,000
Less: Tax credit payments
Payments prior Gifts during the Calendar year [(500,000-250,000) x 6%] (15,000)
Foreign donor’s tax (35,000)
Tax Payable P 55,000