An individual suffered injuries in a vehicular accident in 2020. Consequently, he incurred and paid medical expenses of P300,000 and legal fees of P100,000 during the year. Later during the year, he accepted P500,000 settlement offered by the owner of the vehicle. Required: Determine the amount of taxable income of the individual who suffered the injury.

An individual suffered injuries in a vehicular accident in 2020. Consequently, he incurred and paid medical expenses of P300,000 and legal fees of P100,000 during the year. Later during the year, he accepted P500,000 settlement offered by the owner of the vehicle. Required: Determine the amount of taxable income of the individual who suffered the injury.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter3: Tax Formula And Tax Determination; An Overview Of property Transactions

Section: Chapter Questions

Problem 48P

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