In case of sale of real properties classified as capital asset, who is liable to pay the capital gains tax?
Use the following information for the next three (3) questions:
Ms. Bea a licensed real estate broker comes to you with the following records and transactions:
Transaction #1. Land with TCT NO. 1900238 was sold to Mr. Bean for P 5,000,000 by Mr. Budotz on September 08, 2019 in Manila evidenced by a deed of sale executed in Bulacan. The cost of the land is P 2,000,000 which is equal to its market value stated in the tax declaration and the property is located in Makati.
Transactions #2. Land with TCT No. 1877234 was sold to Mr Gerarld for P 10,000,000 by Mr. Joshua on November 04, 2019 in Cavite evidenced by a deed of sale executed in Caloocan. The cost of the land is P 6,000,000 which is equal to its market value stated in the tax declaration and the property is located in Manila
Additional Information
- Bea called the respective RDO's of each transaction to determine how much is the zonal value of each land sold. RDO's reply is P 6,000,000 and P 9,800,000, respectively,
- On December 14, 2019, Ms. Bea P 1,500,000 received her commission income from the above stated sellers. She incurred P 120,000 expenses in connection with her work and P 20,000 for her cosmetics and make-ups for her appealing appearance. Ms. Bea is currently residing in Cubao.
She asked you the following questions:
53. In case of sale of real properties classified as capital asset, who is liable to pay the
A. Bureau of Internal Revenue C. Real Estate Broker
B. Buyer
D. Seller
54. In relation to transaction #1, How much is the capital gains tax due, if any?
A. PO
C. P300,000
B. P360,000.
D. P450,000
55. In transaction #2, how much is the capital gains tax due?
A. P588,000
C. P750,000
B. P360,000.
D. P600,000
56. How much is my taxable Income to reported in my Income tax return, if any?
A. PO
C. P1,380,000
B. P1,360,000
D. P1,500,000
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54. In relation to transaction #1, How much is the
A. PO
C. P300,000
B. P360,000.
D. P450,000
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