True or False: (I do not require explanations)   14

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True or False:

(I do not require explanations)

 

14. If within the taxable year, and individual taxpayer reporting income on the cash basis incurs an indebtedness on which an interest is paid in advance through discount or otherwise, such interest shall be allowed as a deduction in the year the indebtedness is paid.

 

15. At the option of the taxpayer, interest incurred to acquire property used in trade business or exercise of a profession may be allowed as a deduction or treated as a capital expenditure.

 

16.   Estates and Trusts are allowed a personal exemption of P32,000.00 regardless of the number of   trusts a beneficiary may receive income from.

 

     17. The income tax rates for corporate taxpayers apply to taxable estates and trusts.

 

     18. The taxable income of an estate or trust shall be computed in the same manner and or the same basis as in the case of a corporation.

 

 

19.  Estates and trusts are required to file a declaration of estimated income for the current taxable year on or before Dec. 31 of the same taxable year.

 

      20. Taxable estates are estates of deceased persons judicially settled.

 

 

      21.  For a trust to be taxable, it must be revocable both as to corpus and income.

 

22.  Income received by estates of deceased persons during the period of administration of settlement or the estate; and income which, in the discretion of the fiduciary, may be either distributed to the beneficiaries or accumulated, are taxable to the fiduciary.

 

      23.  The taxable year of estates and trusts shall be the fiscal year.

 

24.  The items of gross income of the estates and trusts are different from the gross income of individuals as provided in the Tax Code.

 

 

25.  Income which is to be distributed currently by the fiduciary to the beneficiaries; and income collected by a guardian of an infant which is to be held or distributed as the court may direct, are not deductible from the gross income of the fiduciary.