際際滷

際際滷Share a Scribd company logo

ppt or vd ppt.pptx

Download as PPTX, PDF
E
Exequiel Cruspero

The document provides an example computation of the vanishing deduction for property previously taxed or with a vanishing deduction. It details the transfer of property from Mr. Sancho to his son Junior in 2012, then from Junior to his estate in 2015. The computation takes the value of the properties transferred, subtracts the mortgage debt paid, sets the initial basis, applies a proportional deduction based on the estate's gross value and deductions, and calculates the final basis and vanishing deduction at 40% of the final basis amount.

1 of 4
Download to read offline
PROPERTY PREVIOUSLY TAXED OR VANISHING DEDUCTION ILLUSTRATIVE PROBLEM
STEP BY STEP COMPUTATION Value taken of PPT xx Less: Mortgage debt paid (1st deduction) (xx) Initial Basis xx Less: Proportional deduction (2nd deduction) [(IB/GE) x (LIT+TPU)] (xx) Final Basis xx x Rate % Vanishing Deduction xx
Illustration On August 14, 2012, Mr. Sancho died leaving his house & lot and van to Junior, his only son who is still a bachelor. The estate tax corresponding to the transmission of these property were paid. Following are the relevant data: Property Fair market value at the time of death Unpaid mortgage at the time death Sanchos Juniors Sanchos Juniors House & Lot Van P2,400,000 360,000 P2,550,000 210,000 P240,000 P30,000 On October 19, 2015, Junior died. His gross estate including the house & lot and van were declared at P9.6M while deductions (for losses, indebtedness, taxes etc and transfer for public use) amounted to P1.8M.
Computation Value taken (P2.4M + P210,000) P2,610,000 Less: Mortgaged debt paid 1st deduction (P240,000 P30,000) (210,000) Initial Basis 2,400,000 Less: Proportional deduction 2nd deduction (2.4M/9.6m) x 1.8M (450,000) Final Basis 1,950,000 x Percentage of deduction 40% Vanishing Deduction 780,000 2015 10 19 2012 8 14 3 2 5 3 years, 2 mos., 5 days

More Related Content

ppt or vd ppt.pptx

  • 1. PROPERTY PREVIOUSLY TAXED OR VANISHING DEDUCTION ILLUSTRATIVE PROBLEM
  • 2. STEP BY STEP COMPUTATION Value taken of PPT xx Less: Mortgage debt paid (1st deduction) (xx) Initial Basis xx Less: Proportional deduction (2nd deduction) [(IB/GE) x (LIT+TPU)] (xx) Final Basis xx x Rate % Vanishing Deduction xx
  • 3. Illustration On August 14, 2012, Mr. Sancho died leaving his house & lot and van to Junior, his only son who is still a bachelor. The estate tax corresponding to the transmission of these property were paid. Following are the relevant data: Property Fair market value at the time of death Unpaid mortgage at the time death Sanchos Juniors Sanchos Juniors House & Lot Van P2,400,000 360,000 P2,550,000 210,000 P240,000 P30,000 On October 19, 2015, Junior died. His gross estate including the house & lot and van were declared at P9.6M while deductions (for losses, indebtedness, taxes etc and transfer for public use) amounted to P1.8M.
  • 4. Computation Value taken (P2.4M + P210,000) P2,610,000 Less: Mortgaged debt paid 1st deduction (P240,000 P30,000) (210,000) Initial Basis 2,400,000 Less: Proportional deduction 2nd deduction (2.4M/9.6m) x 1.8M (450,000) Final Basis 1,950,000 x Percentage of deduction 40% Vanishing Deduction 780,000 2015 10 19 2012 8 14 3 2 5 3 years, 2 mos., 5 days