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Transfer

- tax on transfer of property such as:

a. Succession of law (inheritance tax/estate tax)

b. Law of donation (donors tax)

Succession- transfer of property upon the death of the decedent to his heirs or beneficiary.

Law of donation

- when certain person transfer or donate his property to another person.

How to become rich

. !innin" from lotto # pcso is exempt from tax.

$. !innin" from pa"cor related "ames li%e casino is sub&ect to $' final tax.

. *er income from business- income tax

+. ,iscoerin" of wealth natural resources or fold in own land.

- any discoery belon"s to the "ot.

. 0ncome from employment - income tax

1. 2ri3es in sports - income tax or exempt by law

4. !innin"s from t shows - final tax of $'

5. 0nheritance - estate tax

6. ,onation - donors tax

'. *a%apulot n" pera

7usiness tax

. 8alue-added tax

$. 9ther percenta"e taxes

. ommunity tax Holo"raphic will

- a will entirely written dated # si"ned by the testator himself.

Testator

- ma%er of a will

Le"itime

- a portion of decedents wealth resered by law to his compulsory heirs.

elements of succession

. ,ecedent - the one whose death

$. Heirs - ta"apa"mana

. ;state - property of the decedent

7/21/2019 Transfer & Business Tax

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. Suriin" spouse

+. ille"itimate child

>elationship by affinity

. =other in law

$. Sister in law.) ?ross estate

- refers to the composition of prop. Left by the decedent upon his death.

$.) %inds of decedent

a. >esident or citi3en

. >esident citi3en

$. *on-resident citi3en

. >esident alien

b. *on-resident alien

.) The prop. 9f the decedent

. >eal prop. (Titled prop)

$. ar # motorcycle (re"istered prop)

. Shares of stoc%s (@)

+. Tan"ible prop (&ewelryappliancesmachineseAuipment)

. ash en deposit

1. 0ntan"ible prop (re".prop)

+.) 2roperty transferred in contemplation of death

a. Sale of prop w/ insufficient consideration

b. ,onation mortis causa

.) >eocable transfer of property- a transfer of prop in a contract w/ the transferer reseres his ri"hts to alter chan"e modify or

reo%e the contract or chan"e the beneficiaries whether or not excess the ri"ht the prop inoled

is part of the "ross estate.

1.) 2rop transferred under the "eneral/ properof appt

- a transfer of prop in a will # testament by the prior decedent to the current decedent leain" the

ri"ht of the current decedent to "ie to anybody the inherent prop.

B --- 7. --- anybody

2rior current

!hen 7 dies the prop is part of the "e # b

4.) Limited power of appt

- based on the will of the prioi decedent the prop should be "ien to specific person mentioned in

the will.

5.) 2roceeds of life insurance

- are insurance ta%en up by the decedent durin" his lifetime.