Cruz sold a certain property for P100,000. At the time of sale, the property had a fair value of P500,000. The property was previously acquired at cost of P40,000. For taxation purposes, how much shall be subject to transfer tax (in this case, donor's tax)? P40,000 P100,000 P400,000 P460,000

Cruz sold a certain property for P100,000. At the time of sale, the property had a fair value of P500,000. The property was previously acquired at cost of P40,000. For taxation purposes, how much shall be subject to transfer tax (in this case, donor's tax)? P40,000 P100,000 P400,000 P460,000

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Rules by which an authority (usually a government) imposes a financial obligation on individuals or organizations within its domain. Property or transactions can be taxed. While taxes are primarily intended to fund the operation of a government, many tax laws are created to encourage or discourage certain behaviors by citizens or companies.

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D1. A taxpayer (65 years old) sold a holiday home in the previous year of assessment. The taxpayer does not buy and sell houses regularly. The base cost of the house is R350 000. In terms of the sale agreement the taxpayer received R600 000 on the date of the sale in the previous year of assessment. The sales agreement stipulates that the taxpayer will receive 10% of the net profit generated from the rental of the house in the current year of assessment as the balance of the selling price. On 1 July of the current year of assessment the taxpayer received R50 000 representing the 10% of the net profit. Calculate the taxpayer's taxable capital gain or assessed capital loss for the current year of assessment.
This term refers to an asset sold for more than its original value. Using taxable income, it is based on tax tables or tax rate schedules. During this transaction, you can exclude the first $250,000 ($500,000 for married taxpayers) of gain on sale. This term refers to passive income offset. This term essentially includes all income subject to federal tax.
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6. On May 11, 20x8, Taxpayer purchased an office building for $220,000, of which $30,000 was allocated to the land on which the building was located. The building's salvage value was estimated to be $50,000. What amount will Taxpayer deduct for depreciation on his/her 20x9 federal income tax return? A. $ 3,590 B. 4,870 C. 5,640 D. 6,910 E. None of the above
52.)
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Xiu-ying sold a residential house held as a capital asset for P1,200,000 to her friend Xoese. The zonal value of the real property is P2,000,000 and the assessed value per tax declaration is P1, 500,000. Compute for the Donor’s tax due.
Land purchased for 60000 in 2000 and used in the taxpayers bsuiness is sold in the current year for 67000. The sale of the land results in: A. 7000 short term capital gain. B. 7000 long term capital gain. C. 7000 of ordinary income. D. 7000 of section 1231 gain. E. None of the above
Betty sells an interest in a passive activity for $100,000. Her adjusted basis is $70,000 and losses from prior years that were not deductible due to the passive activity loss restrictions total $40,000. The tax effects of the sale are: Gain $30,000 O Gain $60,000 O Loss $10,000 O No gain, No loss.
Mr Generous is a South African resident and contacted you as his tax practitioner to assist him in completing his taxable income calculation for the 2023 year of assessment. Mr Generous calculated his taxable income as R950 000 in respect of the 2023 year of assessment, excluding the following transactions: On 31 December 2022, he donated R100 000 to the SPCA, a registered public benefit organisation. The SPCA issued him with a valid section 18A receipt. He also donated R10 000 to his church, which is not registered as a public benefit organisation, on 23 March 2023. On 4 January 2023, he bought his wife a new car worth R 200 000 for her birthday. Calculate Mr Generous' S18A deduction for the 2022 year of assessment.

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