Discuss capital gains tax using the names and amounts given.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Capital
There are two types of capital gains subject to capital gains tax :
Capital gains on the sale of domestic stocks sold directly to buyer subject to 15%
Capital gains on the sale of real properties not used in business subject to 6%.
EXAMPLE:
Seth engages in transactions 1 and 2. Seth sold his shares of stocks directly to the buyer with the selling price of P180,000 and sold his personal lot with a tax base of P5M.
Requirements: Discuss capital gains tax using the names and amounts given.
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