24. Which of the following transactions is exempt from capital gain tax?

Case 1-Sale of the principal residence of the taxpayer where he entire proceeds is used to purchase a vacation lot in Tagaytay.

Case 2- Sale of a beach lot of the taxpayer where the entire proceeds is used to construct his principal residence.

Case 3-The sale of the principal residence of the taxpayer availing tax exemption for the second time in ten (10) years to purchase another principal residence.

Case 1Case 2Case 3

A.YesYesYes

B.YesYesNo

C.NoNoYes

D.NoNoNo

25. Pedro inherited from his parents a large parcel of undeveloped land acquired by them years ago with total cost of P2,500,000. Pedro now sells all of these parcels for P25,000,000.

How much of the gains should Pedro report in his income tax return for the year?

A.Pedro has the option to report an income of P22,500,000 subject to basic tax or exclude the income from his income tax return and pay 6% capital gains tax.

B.P22,500,000 because although the properties are capital assets and the transaction is subject to capital gain tax, such tax is still considered income tax. Thus, the gain shall also be reported in Pedro's income tax return.

C.Any of the choices above

D.None, because the properties are capital assets and the transaction is subject to capital gain tax and not basic tax.

26. Pedro inherited from his parents a large parcel of undeveloped land acquired by them years ago with total cost of P2,500,000. Pedro now sells all of these parcels for P25,000,000.

Suppose that when Pedro inherited these parcel of land, they were already developed real estate subdivisions with small lots being sold on installment basis. He sold the property for P25,000,000. How much of the gains should Pedro report in his income tax return for the year?

A. Any of the choices above

B. Pedro has the option to report an income of P22,500,000 subject to basic tax or exclude the income from his income tax return and pay 6% capital gains tax.

C. None, because the properties are capital assets and the transaction is subject to capital gain tax and not basic tax.

D. P22,500,000 because the properties are classified as ordinary assets. Thus, the gain shall also be reported in Pedro's income tax return.

27. If the proceeds are from the disposition of principal residence and fully utilized in acquiring or constructing a new principal residence, the capital gain is not subject to tax if the

A. All of the above

B. Acquisition or construction of the new principal residence is within 18 calendar months from the date of disposition.

C. The Commissions shall have been duly notified by the taxpayer within 30 days from the date of sale or disposition through a prescribed return of his intention to avail of the tax exemption.

D. The historical cost or adjusted basis of the real property sold or disposed shall be carried over to the new principal residence built or acquired.

28. Juan is a resident of QC. He sold his family home for P4,000,000 which was previously acquired for P2,000,000. Juan complied all BIR requirements to avail of tax exemption and spent P2,500,000 in acquiring new family home. How much is the capital gains tax to be paid by Juan?

A.P90,000

B. 0

C. P240,000

D. P150,000

36. Which of the following income is required to be filed in a quarterly income tax return?

a.Business income

b.Compensation income

c.Passive income

d.Capital gains