.Bernardo, a Filipino businessman and practicing lawyer, had the following expenses and losses for 2008: Real property taxes paid on his beach resort including 100 as interest 2,500 Value added tax 10,000 Losses from fire but recovered 100,000 from Insurance Company 150,000 Interest paid on his loan to his mother 1,500 Membership dues paid to Integrated Bar of the Phil. 500 Bad debts written off 20,000 Yearly depreciation on carki 5,000 Office furniture bought on July 1, 2008, with an estimated life of 5 years 30,000 Loss on sale of residential lot held for 2 years 25,000 Entertaining sales supervisor and sales manager 4,000 Salaries to office and business personnel 160,000 Bernardo received a cash gift from his Uncle amounting to 25,000 but was stolen. The bad debts in No. 6 above refer to an uncollectible account of a debtor who died without leaving any properties. Required: Compute Bernardo's allowable deductions for his 2008 income tax return 2and explain the items not allowed to be deducted.
.Bernardo, a Filipino businessman and practicing lawyer, had the following expenses and losses for 2008:
Real property taxes paid on his beach resort including
|
100 as interest |
2,500 |
|
Value added tax |
10,000 |
|
Losses from fire but recovered 100,000 |
|
|
from Insurance Company |
150,000 |
|
Interest paid on his loan to his mother |
1,500 |
|
Membership dues paid to Integrated Bar of the Phil. |
500 |
|
|
20,000 |
|
Yearly |
5,000 |
|
Office furniture bought on July 1, 2008, with an |
|
|
estimated life of 5 years |
30,000 |
|
Loss on sale of residential lot held for 2 years |
25,000 |
|
Entertaining sales supervisor and sales manager |
4,000 |
|
Salaries to office and business personnel |
160,000 |
Bernardo received a cash gift from his Uncle amounting to 25,000 but was stolen. The bad debts in No. 6 above refer to an uncollectible account of a debtor who died without leaving any properties.
Required:
Compute Bernardo's allowable deductions for his 2008 income tax return 2and explain the items not allowed to be deducted.
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
