Question

Mr. repito sold his residential land in Manila with fair market value of 12,000,000 for P10,000,000 10. If Mr. Pepito utilized all of the P10.000.000 in buving a house and lot to be used as his new principal residence, the final tax due from him is a, P720,000 00000c. P120,000 00.00 B. P600,000 d. PO 11. If Mr. Pepito utilized only P7,000,000 from the proceeds of the sale in acquiring a new residence, the final tax due from him is Ca P720,000 c. P180,000 b. P216,000ld.POD 000 12. The documentary stamp tax due on the sale is a. P179,895 c. P149,985 do (b. P180,000 d. P150,000

Answer 1

10)Tax calculation :

Capital gains tax is 6%

Capital gain is Claculated on  the selling price, fair market value or zonal value as determined by the Commissioner of Internal Revenue or the fair market value as shown in the schedule of values of the Provincial or City Assessor, whichever is higher.

The proceeds of the sale of the principal residence have been fully utilized in acquiring or constructing new principal residence within eighteen (18) calendar months from the date of sale or disposition

So here Sale proceeds of P10000000 is fully utilized for new pricipal residence then whole capital gain tax is exempt

So Tax P 0

11)Tax calculation :

Capital gains tax is 6%

Capital gain is Claculated on  the selling price, fair market value or zonal value as determined by the Commissioner of Internal Revenue or the fair market value as shown in the schedule of values of the Provincial or City Assessor, whichever is higher.

The proceeds of the sale of the principal residence have been fully utilized in acquiring or constructing new principal residence within eighteen (18) calendar months from the date of sale or disposition.

In case there is no full utilization of the proceeds of sale or disposition, the portion of the gain presumed to have been realized from the sale or disposition will be subject to Capital Gains Tax.

So here Sale proceeds of P7000000 is only utilized for new pricipal residence then part of capital gain tax is exempt

So Tax = 6%*P12000000*(P10000000-P7000000)/P10000000=P216000

12) The Documentary stamp tax calculation:

Documentary stamp tax is around 1.5% and it is levied on the selling price or fair market value of the property, whichever higher.

Here Selling price is P10000000 & Fair market Value is P12000000

So documentary tax is 1.5% on P10000000 or P12000000 which ever is higher

= 1.5%*P12000000

=P180000

Documentary stamp tax is P180000