Practice question
What is the basic distinction between gross estate and net estate?
- Gross estate is always zero
- Net estate is every heir’s salary
- Gross estate is only cash
- Net estate results after applying legally authorized deductions to the relevant gross estate
- Every family expense is automatically excluded
Legal references
- NIRC Sections 84-86, as amended by RA10963: https://lawphil.net/statutes/repacts/ra2017/ra_10963_2017.html
- RR 12-2018 (estate-tax accrual and basic scope): https://bir-cdn.bir.gov.ph/local/pdf/RR%2012-2018.pdf
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