Donors tax Sample problems PDF

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Donor’s Tax Sample Problems Arnold is a sole proprietor engaged in distribution of various consumer products. During 2020, he sold a parcel of land valued at P3,524,665 to his long-lost best friend, Louie, for only P3,000,000. The property was purchased by Mike 3 years ago at a cost of P2,504,897. a...

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Donor’s Tax Sample Problems 1.

2.

Arnold is a sole proprietor engaged in distribution of various consumer products. During 2020, he sold a parcel of land valued at P3,524,665 to his long-lost best friend, Louie, for only P3,000,000. The property was purchased by Mike 3 years ago at a cost of P2,504,897. a.

Determine the capital gains tax and donor’s tax due on the above transaction.

b.

Assuming the parcel of land is sold by Arnold is classified as ordinary asset, determine the capital gains tax and donor’s tax due on the above transaction.

Manny, a resident citizen, made the following donations in 2021: • To Mercy, a land worth P450,000 in Manila. • To Mika, jewelry worth P100,000 in Korea. • To Miriam, Ayala Corporation shares amounting to P150,000. • To Mario, a building in France P1,600,000 mortgaged for P80,000 (62.5% was assumed by Mario). • To Maynard, land in Cebu worth P300,000. • To Melvin, P300,000 cash, Deutsche Bank, Brooklyn branch. • To Maria, P200,000 receivable from the latter, 50% condoned by Manny. c. d. e.

Determine the donor’s tax due of Manny. Determine the donor’s tax due of Manny assuming that he is a non-resident alien. Determine the donor’s tax due of Manny assuming that he is a non-resident alien and the reciprocity law applies.

3.

In 2021, Recster, a resident taxpayer, made the following gifts: Particulars Gross gifts Deductions Tax paid f.

Philippines 800,000.00 300,000.00

Japan 450,000.00 200,000.00 21,000.00

Canada 780,000.00 240,000.00 13,000.00

How much is the donor’s tax payable of Recster for 2021?

Australia 100,000.00 40,000.00 14,000.00...