- Defined – The family home is the dwelling house where a person and his family reside, and the land on which it is situated.
- Value included in the gross estate. The current fair market value or zonal value of the family home, whichever is higher, shall be included in the gross estate of decedent.
- Valuation date. The family home shall be valued as of the date of death.
- Conditions for allowance of deduction:
- Decedent must have died on or after July 28, 1992.
- The total value of the family home must be included in the gross estate of the decedent.
- The family home must be the actual residence of decedent and his family at the time of death, as certified by the Barangay Captain of the locality where the family home is situated.
- Deduction cannot exceed the fair market value or zonal value of the family home as included in the gross estate but not exceeding P1,000,000.
Questions to Answer:
- Only one statement is correct. Deduction for family home:
- Shall be allowed if the family home is in the Philippines.
- Shall be at a maximum of P1,000,000, based on cost.
- May be allowed for two family homes (one in the City and another in the Province), both in the Philippines and with certifications of the Barangay Captains.
- Shall be deducted at lesser than P1,000,000 if, with vanishing deduction and unpaid mortgage or indebtedness, the value of the family home is already reduced to zero.
- Which statement is true?
- A single person who is not a head of family may not have a deduction for family home.
- There can be a deduction for two family homes if their aggregate value does not exceed P1,000,000.
- Deduction may be claimed for a family home of a non-resident citizen of the Philippines located outside the Philippines.
- A family home is always conjugal/community property.
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JONATHAN RUIZ CPA, MIB