Good day Sir. What if the donated property is subjected to mortgage by the donor before the donation and the problem is silent if the mortgage was assumed by the donee, is it an allowable deduction?
Hi Sir Jisryl. I have a question. We already filed and complete our liability for estate tax. BIR did not let us pay Donor's Tax. So after gathering all the requirements for the registry of deeds, the examiner asked for a Donor's Tax. How come they require us to pay when BIR did not let us pay. We made an extrajudicial settlement with waiver of rights. All the property is being waved to one Heir only. In my understanding and base on the requirements that the BIR gave us, we dont need to pay for Donors Tax. Can you clarify this matter? Thank you in advance.
@Ronald Marwan No, we must not pay. We already clarified it with the BIR and Registry of Deeds. There is a Revenue Memorandum Circular No. 94-2021 explaining General Renounciation of an heir on his share from the inheritance is not Subject to DONOR’S tax. Attached is the link explained. th-cam.com/video/tr_WrE0y524/w-d-xo.html
Sir, may I refer an issue to you po. So some siblings want to transfer a property from their late father to them. This property is under tax declaration. So they had it surveyed then divided it among themselves, but not equally. Some have more, some have less. The reason they divided the property was so that each sibling will mind his/her share, i.e. in the payment of annual dues. They were advised to pay the estate tax first for the whole property. But then, they were surprised that they also have to pay a donor's tax, according to the BIR computation. Is the unequal division of the property among themselves reason to have a donor's tax? Thank you po!
The BIR is correct. Since you mentioned the transfer of property is from the deceased father to the children, then it must be subjected to estate tax first for the registration of title under each child. Now the issue is on whether donor's tax is still applicable. I assume there is no last will and testament left by the deceased. As such, the distribution of the property is settled under intestate succession wherein the law will determine the share of each child. Under the Family Code, each legitimate child will receive an equal share from the distributable estate, as such, an unequal distribution of property tantamounts to a donation of some portion of the share of child to another. For example, assume there are 4 children, so each child must receive 1/4 share from the estate. But if one receives 1/3 while the other 3 receives an equal share share from the remaining, thus one receives a bigger portion of share. This means, the other 3 children effectively donate a portion of their share to the one who receives a bigger share. Hence, a donor's tax is imposed on the transfer via donation from one child to another. There is no double taxation here. Estate tax is imposed on the transfer from the deceased to the children, while donor's tax is imposed on transfer (or donation) from one child to another by way of receiving a lesser portion.
Hello po, I hope you can answer my query. If 2 brothers are donating or waiving their share to a person by executing a waiver of rights document, does that mean there are 2 exemptions of 250,000? Salamat po.
Hello po. I have a question. My 6 siblings and I are all American citizens. I have dual citizenship (Phil/Am). Our ancestral home is under all our names. How much tax will each sibling owe the government if they gift their individual shares on this land to me? Let's say the FMV if P5 million. Thank you in advance for your enlightenment!
Sir good morning. Sa 20:12 sir, if the Transfer for personal properties for insufficient consideration is subject to Donor's Tax, example if i-sell nako akong car sa imu (not in the ordinary course of business) nga worth P100 pero gi sell ra nako sa imu for P20. Asa ang subject to donor's tax ana sir, ang whole P100 worth sa car or sa P80 lang nga insufficient or kulang. Thankyou sir
If i made a deed of donation of my real property to my only child and she had accepted it but the tax ill pay is so huge that i cannot afford to pay the bir what will happen to the deed of donation
It is still valid. Non-payment of tax is not a requisite for a valid donation. But, I doubt the property will be transferred to your child because the Registry of Deeds will require you to pay the donor's tax first.
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![[TOPIC 23] DONOR'S TAX | Deductions from Gross Gift and Donor's Tax Computation](/img/n.gif)
Thank you po 😊
Thank you sir. I learned a lot from this video. More blessings to come.❤
Good day Sir. What if the donated property is subjected to mortgage by the donor before the donation and the problem is silent if the mortgage was assumed by the donee, is it an allowable deduction?
5:25 4 Classifications
Hi Sir Jisryl. I have a question. We already filed and complete our liability for estate tax. BIR did not let us pay Donor's Tax. So after gathering all the requirements for the registry of deeds, the examiner asked for a Donor's Tax. How come they require us to pay when BIR did not let us pay. We made an extrajudicial settlement with waiver of rights. All the property is being waved to one Heir only. In my understanding and base on the requirements that the BIR gave us, we dont need to pay for Donors Tax. Can you clarify this matter? Thank you in advance.
@Ronald Marwan No, we must not pay. We already clarified it with the BIR and Registry of Deeds. There is a Revenue Memorandum Circular No. 94-2021 explaining General Renounciation of an heir on his share from the inheritance is not Subject to DONOR’S tax. Attached is the link explained. th-cam.com/video/tr_WrE0y524/w-d-xo.html
What advice should I give to a Resident Alien who doesn’t know the proper way of donation in accordance to the Train Law?
Explain to them the legal and tax provisions po. Then, give them a sample illustration so they will understand.
Sir, may I refer an issue to you po. So some siblings want to transfer a property from their late father to them. This property is under tax declaration. So they had it surveyed then divided it among themselves, but not equally. Some have more, some have less. The reason they divided the property was so that each sibling will mind his/her share, i.e. in the payment of annual dues. They were advised to pay the estate tax first for the whole property. But then, they were surprised that they also have to pay a donor's tax, according to the BIR computation. Is the unequal division of the property among themselves reason to have a donor's tax? Thank you po!
The BIR is correct. Since you mentioned the transfer of property is from the deceased father to the children, then it must be subjected to estate tax first for the registration of title under each child.
Now the issue is on whether donor's tax is still applicable. I assume there is no last will and testament left by the deceased. As such, the distribution of the property is settled under intestate succession wherein the law will determine the share of each child. Under the Family Code, each legitimate child will receive an equal share from the distributable estate, as such, an unequal distribution of property tantamounts to a donation of some portion of the share of child to another. For example, assume there are 4 children, so each child must receive 1/4 share from the estate. But if one receives 1/3 while the other 3 receives an equal share share from the remaining, thus one receives a bigger portion of share. This means, the other 3 children effectively donate a portion of their share to the one who receives a bigger share. Hence, a donor's tax is imposed on the transfer via donation from one child to another. There is no double taxation here. Estate tax is imposed on the transfer from the deceased to the children, while donor's tax is imposed on transfer (or donation) from one child to another by way of receiving a lesser portion.
@@JisrylRaz_ftt Thank you so much po, Sir! Really enlightened by this.
Hello po, I hope you can answer my query. If 2 brothers are donating or waiving their share to a person by executing a waiver of rights document, does that mean there are 2 exemptions of 250,000? Salamat po.
Hello po. I have a question. My 6 siblings and I are all American citizens. I have dual citizenship (Phil/Am). Our ancestral home is under all our names. How much tax will each sibling owe the government if they gift their individual shares on this land to me? Let's say the FMV if P5 million. Thank you in advance for your enlightenment!
Sir good morning. Sa 20:12 sir, if the Transfer for personal properties for insufficient consideration is subject to Donor's Tax, example if i-sell nako akong car sa imu (not in the ordinary course of business) nga worth P100 pero gi sell ra nako sa imu for P20. Asa ang subject to donor's tax ana sir, ang whole P100 worth sa car or sa P80 lang nga insufficient or kulang. Thankyou sir
Fv-Sp= subj to donor tax
If i made a deed of donation of my real property to my only child and she had accepted it but the tax ill pay is so huge that i cannot afford to pay the bir what will happen to the deed of donation
It is still valid. Non-payment of tax is not a requisite for a valid donation. But, I doubt the property will be transferred to your child because the Registry of Deeds will require you to pay the donor's tax first.