question archive Amanda Raya sold her properties to her son on the following prices: Residential house for P100,000 Personal properties for P50,000 The Current fair market value on the date of sale was P1,000,000 for the house, and P500,000 for personal properties
Amanda Raya sold her properties to her son on the following prices: Residential house for P100,000 Personal properties for P50,000 The Current fair market value on the date of sale was P1,000,000 for the house, and P500,000 for personal properties
Subject:FinancePrice:3.87 Bought7
Amanda Raya sold her properties to her son on the following prices:
Residential house for P100,000
Personal properties for P50,000
The Current fair market value on the date of sale was P1,000,000 for the house, and P500,000 for personal properties.
Assuming that you know the facts as a BIR officer the correct tax payable on the transaction is
a. P12,000 c. None
b. P72,000 d. P38,000
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Answer: b .
Calculation of the correct tax payable on this transaction:
It is determined by the tax amount of the capital gains less the tax amount of the consideration paid.
Here, the tax rate subjected to sale of property is 6%.
= [(1,500,000 - 150,000) * 0.06 ] - [150,000 * 0.06]
= 81,000 - 9,000
= 72,000.
Therefore, the correct tax payable on this transaction is P 72,000.
