BIR Ruling [DA-219-98]

June 2, 1998 BIR RULING [DA-219-98] Ms. Aileen Oconer-Altamirano 9 St. Andrew Street Don Bosco Village Paraaque, Metro Manila M a d a m : This refers to your letter dated July 28, 1997 requesting for confirmation of your opinion that the lot covered by TCT No. 102476 of the Registry of Deed of Paraaque with Tax Declaration No. E-003-08741 may be allowed as deduction in the computation of the net estate and estate tax of your late uncle. Documents show that your uncle, MR. BARTOLOME S. OCONER, died on March 1, 1997; that the subject lot is owned in common by the decedent, Bartolome S. Oconer and his surviving sister, Purificacion S. Oconer; that an Extrajudicial Settlement of Estate with Waiver of Hereditary Rights was executed on July 2, 1997 by the heirs; and that a printed copy of the same was published in Balita by Liwayway Publishing, Inc. on July 10, 17 and 24, 1997. In reply, please be informed as follows: Articles 152 and 153 of the Family Code define "family home" as the dwelling house, including the land on which it is situated, where the husband and wife or an unmarried person who is the head of a family and members of their family reside , as certified to by the Barangay Captain of the locality. The family home is deemed constituted on the house and lot from the time it is actually occupied as a family residence and is considered as such for as long as any of its beneficiaries actually resides therein . Accordingly, the subject lot covered by TCT No. 102476 of the Registry of Deeds of Paraaque with T/D No. E-003-08741 may be allowed as deduction to the extent provided under then Sec. 79(a)(4) of the Tax Code, as amended, now Sec. 86(A)(4) of the Tax Code of 1997, in the computation of the net estate and estate tax of your late uncle. The value of the lot and house, which is the actual residential home of the decedent and his family at the time of his death, shall be allowed as deduction depending on whether the subject property is a conjugal property or exclusively owned by the deceased. Pursuant to Revenue Regulations No. 17-93, the allowable deduction must be in an amount equivalent to the fair market value or zonal value of the family home as declared or included in the gross estate but not exceeding One Million Pesos (P1,000,000.00). [BIR Ruling No. 115-97 dated November 5, 1997] This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. cdpr Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)