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On June 1, 2018, a taxpayer purchased for P1,000,000 a vehicle which he used as delivery truck for his trading business. He deducted annual depreciation
On June 1, 2018, a taxpayer purchased for P1,000,000 a vehicle which he used as delivery truck for his trading business. He deducted annual depreciation based on an estimated useful life of five (5) years. On June 1, 2021, the automobile was partially damaged in an accidental collision with another vehicle. The cost of repairs amounted to P200,000. The taxpayer received insurance proceeds of P100,000 to cover the loss. Determine the amount of loss that could be deducted from the taxpayer's gross income in 2021.
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