On February 2018, Mr. and Mrs.Joso donated a conjugal parcel of land to their son who was getting married within six (6) months after the date of donation. The fair market value of the property at the time of donation was P5,000,000. Its fair market value at the time of marriage was P5,500,000. The donated property was subject to P1,000,000 mortgage which was not assumed by the donee. How much is the net taxable net gift of Mr. Joso?

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges
Section: Chapter Questions
Problem 57P
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On February 2018, Mr. and Mrs.Joso donated a conjugal parcel of land to their son who was getting married within six (6) months after the date of donation. The fair market value of the property at the time of donation was P5,000,000. Its fair market value at the time of marriage was P5,500,000. The donated property was subject to P1,000,000 mortgage which was not assumed by the donee. How much is the net taxable net gift of Mr. Joso?

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