On August 31, 2022, Jackie agreed to purchase a parcel of land for P1,000,000 which the seller considered as a capital asset. The deed of absolute sale, however, was processed and dated on September 15, 2022. The land was valued at the following: Appraised value - 1,200,000 Zonal value - 900,000 Assessor's value - 800,000 Seller's tax basis - 500,000 How much is the capital gains tax?

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter17: Property Transactions: §1231 And Recapture Provisions
Section: Chapter Questions
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On August 31, 2022, Jackie agreed to purchase a parcel of land for P1,000,000 which the seller considered as a capital asset. The deed of absolute sale, however, was processed and dated on September 15, 2022. The land was valued at the following:

  • Appraised value - 1,200,000
  • Zonal value - 900,000
  • Assessor's value - 800,000
  • Seller's tax basis - 500,000
How much is the capital gains tax?
 
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