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Capital Properties in Gross Estate Analysis

The document discusses different types of property in the context of estate taxes for married individuals. It defines capital property, common property, conjugal property, community property, exclusive property, and ordinary deductions. It provides examples of how different types of acquired property like jewelry are classified, and notes the differences between rules under the Conjugal Partnership of Gains and Absolute Community of Property. The document also discusses calculations for gross estate, tax credits, and the net taxable estate.

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31 views2 pages

Capital Properties in Gross Estate Analysis

The document discusses different types of property in the context of estate taxes for married individuals. It defines capital property, common property, conjugal property, community property, exclusive property, and ordinary deductions. It provides examples of how different types of acquired property like jewelry are classified, and notes the differences between rules under the Conjugal Partnership of Gains and Absolute Community of Property. The document also discusses calculations for gross estate, tax credits, and the net taxable estate.

Uploaded by

xxpinkywitchxx
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© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd

• CAPITAL PROPERTY + COMMON PROPERY = gross estate of a decedent who

was married at the time of death


• In order for a property acquired by right of redemption or exchange to be exclusive, it
should be OWNED ONLY BY ONE OF THE SPOUSE
• CONJUGAL PROPERTY = Common property under CPG
• COMMUNITY PROPERTY = Common property under ACoP
• ORDINARY DEDUCTIONS except Vanishing Deduction is considered COMMON
DEDUCTIONS ALWAYS
• CLAIMS AGAINST INSOLVENT PERSONS must be included in the gross estate
before deducted
• Example clothes, depends sino gumagamit.

CONJUGAL PARTNERSHIP OF GAINS


• Property acquired during marriage from common funds = CONJUGAL
• Property acquired during marriage from exclusive funds = EXCLUSIVE
• Properties from gratuitous transfer during marriage where the donor or testator
expressly provides that it shall form part of the common property of the spouses =
EXCLUSIVE
• GROSS ESTATE = EXCLUSIVE PROPERTY + CONJUGAL PROPERTY
• Property purchased using funds derived from practice of profession = CONJUGAL
(LWIP)

Rules in ACoP regarding JEWELRY do not apply in CPG. Hence depends whether or not if
it is for the exclusive use. IF FOR EXCLUSIVE USE = EXCLUSIVE

ABSOLUTE COMMUNITY OF PROPERTY


• RULES ON FRUITS

NOTE: If silent, assumed it is a COMMUNITY PROPERTY

• Properties from gratuitous transfer during marriage where the donor or testator
expressly provides that it shall form part of the common property of the spouses =
COMMON
• GROSS ESTATE = EXCLUSIVE PROPERTY + CONJUGAL PROPERTY
• JEWELRY is always CONJUGAL even if inherited

TAX CREDIT
• Estate tax payable = Estate tax due
• NET TAXABLE ESTATE AS THE DENOMINATOR / NET ESTATE BEFORE
SPECIAL DEDUCTIONS for estate tax

NET TAXABLE ESTATE all the special deductions were already deducted

• CUMMULATIVE NET GIFT OR TOTAL NET GIFT for donor's tax

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