Taxation Law Question: XV

Don Sebastian, single but head of the family, Filipino, and resident of Pasig City, died intestate on November 15, 2009. He left the following properties and interests:

House and lot (family home) in Pasig	P 800,000
Vacation house and lot in Florida, USA	1,500,000
Agricultural land in Naic, Cavite which he inherited from his father	2,000,000
Car which is being used by his brother in Cavite	500,000
Proceeds of life insurance where he named his estate as irrevocable beneficiary	1,000,000
Household furnitures and appliances	1,000,000
Claims against a cousin who has assets of P10,000 and liabilities of P100,000	100,000
Shares of stock in ABC Corp, a domestic enterprise	100,000
The expenses and charges on the estate are as follows:
Funeral Expenses	P 250,000
Legal fees for the settlement of the estate	500,000
Medical expenses of last illness	600,000
Claims against the estate	300,000

The compulsory heirs of Don Sebastian approach you and seek your assistance in the settlement of his estate for which they have agreed to the above-stated professional fees. Specifically, they request you to explain and discuss with them the following questions. You oblige:

1. What are the properties and interests that should be included in the computation of the gross estate of the decedent? Explain. (2.5%)

2. What is the net taxable estate of the decedent? Explain. (2.5%)

3. When is the due date for filing and payment of the applicable tax return and tax? Are these dates extendible? If so, under what conditions or requirements? (2.5%)

4. If X, one of the compulsory heirs, renounces his share in the inheritance in favor of the other co-heirs, is there any tax implication of X’s renunciation? What about the other coheirs? (2.5%)