Valuation of Gross Estate

VALUATION OF GROSS ESTATE:

1.       In General – the properties comprising the gross estate shall be valued based on their fair market value as of the time of death.

2.       Real Property – FMV determined by the Commissioner or the FMV as shown in the schedule of values fixed by the provincial and city assessors, whichever is higher.

Ø  If there is no zonal value, the taxable base is the fair market value that appears in the latest tax declaration.

Ø  If there is an improvement, the value of improvement is the construction cost per building permit or the fair market value per latest tax declaration.

3.       Shares of stocks:

a.        Unlisted common shares – book value

F  In determining the book value of common shares, appraisal surplus shall not be considered, as well as the assigned to preferred shares, if there are any.

b.       Unlisted preferred shares – par value

c.        Listed shares (in stock exchange) – the FMV shall be the arithmetic mean between the highest and lowest quotation at a date nearest the date of death.

4.       Right to usufruct, use or habitation, and annuity – there shall taken into account the probable life of the beneficiary in accordance with the latest basic standard mortality table.