1. 1. Donations on one date by K, father, of property and cash as
follows: to L, a legitimate daughter on account of marriage, land
with fair market value of 500,000 but subject to a mortgage of
100,000 which is assumed by L; to M, a legitimate son, on account
of marriage, cash of 200,000.
Required: Compute the amount of Net Gifts

2. Problem 1
Land 500,000.00
Cash 200,000.00
Gross Gift 700,000.00
less: Deductions
Mortgage 100,000.00
Account of Marriage
Daughter 10,000.00
Son 10,000.00
Net Gifts 580,000.00

3. 2. A, donated the following during 2014:
Mar 1- to his son on account of marriage 600,000
Oct 1- to daughter on account of graduation, 500,000
Dec 25- to his god-children , 400,000
Dec 31- to his neighbour, 100,000
Compute donor’s tax for:
a. Relative
b. Strangers

4. Problem 2
Donation to Relative
Mar 1 Gross Gift 600,000.00
Deductions (10,000.00)
Net Gift 590,000.00
Tax on 500,000 14,000.00
Excess at 6% 5,400.00
Donor's Tax 19,400.00
Oct 1 Gross Gift 500,000.00
Deduction -
Net Gift 500,000.00
Net Gift, Previous 590,000.00
Aggregate Net Gift 1,090,000.00
Tax on 1000,000 44,000.00
Excess at 8% 7,200.00
Total Donor's Tax 51,200.00
Donor's Tax, Previous (19,400.00)
Donor's Tax, Donation to Stranger Current 31,800.00
Dec 25 Gross Gift 400,000.00
Dec 31 100,000.00
500,000.00
x Donor's Tax Rate 30%
Donor's Tax Due 150,000.00

5. 3. Mr. and Mrs. Dinero donated the following:
Jan 5,2012- to son for birthday, 1,000,000
Mar 30, 2013- to son for graduation, 500,000
Jun 28, 2013- to son for wedding, 2,000,000
Compute the donor’s tax for donation made on June 28, 2013.

6. Problem 3
Mr. Dinero Mrs. Dinero Total
Mar 30
Gross Gift 250,000.00 250,000.00 500,000.00
-
Deductions
- -
Net Gift 250,000.00 250,000.00 500,000.00
Tax on 200,000 2,000.00 2,000.00 4,000.00
Excess at 4% 2,000.00 2,000.00 4,000.00
Donor's Tax 4,000.00 4,000.00 8,000.00
Jun 28
Gross Gift 1,000,000.00 1,000,000.00 2,000,000.00
Deduction (10,000.00) (10,000.00) (20,000.00)
Net Gift 990,000.00 990,000.00 1,980,000.00
Net Gift, Previous 250,000.00 250,000.00 500,000.00
Aggregate Net Gift 1,240,000.00 1,240,000.00 2,480,000.00
Tax on 1,000,000 44,000.00 44,000.00 88,000.00
Excess at 8% 19,200.00 19,200.00 38,400.00
Total Donor's Tax 63,200.00 63,200.00 126,400.00
Donor's Tax Previous (4,000.00) (4,000.00) (8,000.00)
Donor's Tax Current 59,200.00 59,200.00 118,400.00

7. Problem 3
Mr. Dinero Mrs. Dinero Total
Mar 30
Gross Gift 250,000.00 250,000.00 500,000.00
-
Deductions
- -
Net Gift 250,000.00 250,000.00 500,000.00
Tax on 200,000 2,000.00 2,000.00 4,000.00
Excess at 4% 2,000.00 2,000.00 4,000.00
Donor's Tax 4,000.00 4,000.00 8,000.00
Jun 28
Gross Gift 1,000,000.00 1,000,000.00 2,000,000.00
Deduction (10,000.00) (10,000.00) (20,000.00)
Net Gift 990,000.00 990,000.00 1,980,000.00
Net Gift, Previous 250,000.00 250,000.00 500,000.00
Aggregate Net Gift 1,240,000.00 1,240,000.00 2,480,000.00
Tax on 1,000,000 44,000.00 44,000.00 88,000.00
Excess at 8% 19,200.00 19,200.00 38,400.00
Total Donor's Tax 63,200.00 63,200.00 126,400.00
Donor's Tax Previous (4,000.00) (4,000.00) (8,000.00)
Donor's Tax Current 59,200.00 59,200.00 118,400.00