Answered: Compute for the capital gains tax

Business

Accounting

Compute for the capital gains tax

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter12: Tax Credits And Payments

Section: Chapter Questions

Problem 28P

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Question

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A resident citizen taxpayer sold a vacant lot (held as investment) in the Philippines. Other data regarding the sale are as follows:

Selling price - P5,500,000

Fair market value - 6,000,000

Zonal value - 5,850,000

Expenses on sale - 275,000

Compute for the capital gains tax.

Definition Definition Increase in the value of a capital asset and the amount that is realized when the asset is sold off. A capital gain may be short-term or long-term depending on the tenure for which the asset is held.

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