Zixin donated a piece of land to his best friend, Zaleki. The land had an assessed value of P1,000,000 and zonal value of P800,000 at the time of donation. It was also encumbered with an unpaid mortgage of P300,000 which was assumed by the donee. In addition, the donee agreed to pay the applicable donor's tax of P210,000. For donor's tax purposes, how much was the total deductions?
Zixin donated a piece of land to his best friend, Zaleki. The land had an assessed value of P1,000,000 and zonal value of P800,000 at the time of donation. It was also encumbered with an unpaid mortgage of P300,000 which was assumed by the donee. In addition, the donee agreed to pay the applicable donor's tax of P210,000. For donor's tax purposes, how much was the total deductions?
Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges
Section: Chapter Questions
Problem 58P
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Zixin donated a piece of land to his best friend, Zaleki. The land had an assessed value of P1,000,000 and zonal value of P800,000 at the time of donation.
It was also encumbered with an unpaid mortgage of P300,000 which was assumed by the donee. In addition, the donee agreed to pay the applicable donor's tax of P210,000.
For donor's tax purposes, how much was the total deductions?
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