Which of the following statements is wrong? a) The sale of a principal residence may be exempt from capital gains taxation. b) The sale or a real property to the government may be subject to regular income taxation. c) Capital gains on the sale of real property located in the Philippines and held as capital asset is based on presumed gains d) None of the above

Which of the following statements is wrong? a) The sale of a principal residence may be exempt from capital gains taxation. b) The sale or a real property to the government may be subject to regular income taxation. c) Capital gains on the sale of real property located in the Philippines and held as capital asset is based on presumed gains d) None of the above

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter2: Gross Income And Exclusions

Section: Chapter Questions

Problem 4MCQ

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Which of the following statements with respect to the taxation of capital gains is not correct? A. When government assistance is provided to acquire a capital asset, it is deducted from the adjusted cost base of the asset. B. Gains resulting from dispositions of personal use capital assets are subject to tax. C. When an individual sells shares in a Canadian small business corporation, any resulting capital gain can be deferred if the proceeds are reinvested in shares of another Canadian small business corporation. D. When a part of a group of identical securities is sold, the adjusted cost base of the shares sold must be based on the average cost of the group.
Which of the following income derived from within the Philippines by a resident individual is not subject to the rates in Section 24(A) of the NIRC? Which of the following income derived from within the Philippines by a resident individual is not subject to the rates in Section 24(A) of the NIRC? a. A gain from sale of a motor vehicle as another income of a taxpayer who is a compensation income earner b. A passive income in the form of prize won in a raffle amounting to PHP 4,000 c. Salary received by a managing partner of a general professional partnership d. A gain on sale of a real property for private use of the family of the taxpayer
Which of the following income derived from within the Philippines by a resident individual is not subject to the rates in Section 24(a) of the NIRC? a. Salary received by a managing director of a general professional partnership. b. A passive income in the form of a prize win in a raffle amounting to P4,000.00. c. A gain from sale of his personal motor vehicle as another income of a taxpayer who is a compensation earner. d. A gain on sale of a real property for private use of the family of the taxpayer.
Which of the following is accurate regarding a real estate foreclosure transaction? A A foreclosure transaction can never involve recourse debt. B A foreclosure transaction can never involve nonrecoursedebt. C A foreclosure transaction has no federal income taxconsequences for the borrower. D A foreclosure transaction can have significant federalincome tax consequences for the borrower.
Which of the following is wrong? The expenses of exempt corporations from exempt operations are deductible to its gross income from unrelated operations. University of the Philippines is exempt from income tax. A non-stock, non-profit institution organized for cultural purposes is exempt from income tax. None of the above
Which of the following is not an exclusion from gross income? A. Income of government propertiesB. Income taxes collected by the BIRC. SSS benefitsD. Dividend income payable to a foreign government
Which of the following is the proper tax treatment of a loss that is realized on an involuntary conversion business property? The loss is never recognized, the loss is categorized as a short-term capital loss, the loss is recognized or the loss is recognized on the involuntary conversion of real estate, but not on the involuntary conversion of personal property
In an agreement involving the right to acquire property, which of the following are conditions that must be met in order for the IRS to accept the purchase price set in the agreement as a valid measurement of the value of the property being acquired? The purchase price must be determined by an independent appraisal submitted with an informational gift tax return regardless of the value of the property. The agreement must be a bona fide business arrangement. The agreement cannot be an attempt to transfer the property to a family member for less than full and adequate consideration. The terms of the agreement must be comparable to those that would be entered into by persons in an arm's-length transaction A) I and III B) II and IV C) I and IV D) II, III, and IV
TRUE OR FALSE? By seizure, no part of the proceeds goes to the taxpayer because the property is confiscated in favour of the government.
Which of the following statements is correct? When depreciable property is gifted to another individual taxpayer, the depreciation recapture potential is extinguished. When depreciable property is inherited by a taxpayer, the depreciation recapture potential is extinguished. When corporate depreciable property is distributed as a dividend, the depreciation recapture potential is generally not recognized. When depreciable property is contributed to charity, the depreciation recapture potential has no effect on the amount of the charitable contribution deduction. All of the above are correct.
Which of the following best describes the tax treatment described in IRC Section 351? Multiple Choice The gain on the transfer of the property is deferred because the transferor retains ownership of the property The gain on the transfer of the property is deferred because the corporation is newly formed The gain on the transfer of the property is accelerated because the transferor retains ownership of the property The gain on the transfer of the property is accelerated because the
MC Topic: Income Taxation Identify a false statement: * Capital Gains Tax is a tax imposed on the gains realized by the seller from the sale, exchange, or other disposition of certain capital assets located in the Philippines, including pacto de retro sales and other forms of conditional sale. Under NIRC, the capital gains tax on the sale of domestic stocks sold directly to buyer is a final tax. Under NIRC, The capital gains tax on the sale of real property located in the Philippines and classified as capital asset is a final tax. None of the above All of the above