Right or Wrong
1. Dealings in capital assets resulting to gain are all taxable with either final capital gain tax or graduated income tax rate in 1701 or 1702.
2. Taxable capital gain which are not collected with final tax is returnable in 1701 or 1702.
3. Capital gain in investment in equity securities transacted inside stock exchange is exempt from capital gain tax but liable to transaction tax.
4. Taxable capital gain from sale of investment in equity securities is required to be reported in form 1707 and be filed/remitted on prescribed date.
5. Capital asset in the form of real property sold at a gain is liable with capital gain tax of 6% on the amount of capital gain if the zonal value is higher than the selling price.
6. If the real property which is a taxable capital asset is sold at selling price lower by P500,000 than zonal value of P1,200,000 its capital gain tax liability is
A. 30k
B. 42k
C. 72k
D. 102k
7. If the P500,000 investment in equity securities is traded inside stock exchange at capital gain of P300,000, the transaction tax liability is
A. 18k
B. 4.8k
C. 3k
D. 1.8k
8. The returnable capital gain of P500,000 was realized from capital assets held for 2 years prior to sale. For the same period the ordinary business income was P200,000. If the tax return to be accomplished is 1701, the combined income taxable with normal graduated income tax rate is
A. 700k
B. 450k
C. 200k
D. NIL
9. The returnable capital gain of P500,000 was realized from capital assets held for 2 months prior to sale. For the same period the ordinary business operating loss was P200,000. If the tax return to be accomplished is 1701, the combined income taxable with normal income tax rate is
A. 50k
B. 300k
C. 250k
D. 500k
10. The net capital loss reported in 1701 of prior year was P200,000 when the business income was P150,000. In the following year, the net capital loss from prior year that could be claimed as deduction from current year's capital gain is
A. 350k
B. 200k
C. 150k
D. 50k
Right or Wrong
1. Dealings in capital assets resulting to gain are all taxable with either final capital gain tax or graduated income tax rate in 1701 or 1702.
2. Taxable capital gain which are not collected with final tax is returnable in 1701 or 1702.
3. Capital gain in investment in equity securities transacted inside stock exchange is exempt from capital gain tax but liable to transaction tax.
4. Taxable capital gain from sale of investment in equity securities is required to be reported in form 1707 and be filed/remitted on prescribed date.
5. Capital asset in the form of real property sold at a gain is liable with capital gain tax of 6% on the amount of capital gain if the zonal value is higher than the selling price.
6. If the real property which is a taxable capital asset is sold at selling price lower by P500,000 than zonal value of P1,200,000 its capital gain tax liability is
A. 30k
B. 42k
C. 72k
D. 102k
7. If the P500,000 investment in equity securities is traded inside stock exchange at capital gain of P300,000, the transaction tax liability is
A. 18k
B. 4.8k
C. 3k
D. 1.8k
8. The returnable capital gain of P500,000 was realized from capital assets held for 2 years prior to sale. For the same period the ordinary business income was P200,000. If the tax return to be accomplished is 1701, the combined income taxable with normal graduated income tax rate is
A. 700k
B. 450k
C. 200k
D. NIL
9. The returnable capital gain of P500,000 was realized from capital assets held for 2 months prior to sale. For the same period the ordinary business operating loss was P200,000. If the tax return to be accomplished is 1701, the combined income taxable with normal income tax rate is
A. 50k
B. 300k
C. 250k
D. 500k
10. The net capital loss reported in 1701 of prior year was P200,000 when the business income was P150,000. In the following year, the net capital loss from prior year that could be claimed as deduction from current year's capital gain is
A. 350k
B. 200k
C. 150k
D. 50k
Related questions
Mr. Green had the following capital transactions in 2015:
Date Acquired | Cost | Date Sold | Selling Price |
01/13/14 | $ 4,500 | 01/10/15 | $ 8,000 |
05/10/12 | $ 3,000 | 02/25/15 | $ 4,000 |
08/09/14 | $ 38,000 | 07/06/15 | $ 45,000 |
01/17/15 | $ 6,000 | 11/16/15 | $ 2,000 |
07/10/12 | $ 1,500 | 12/20/15 | $ 5,500 |
Required:
What is Mr. Greenâs net long term capital gain or loss?
What is Mr. Greenâs net short term gain or loss?
What is his net capital gain or loss? How will it affect histaxable income?
