True or False

1. Capital gain is the gain derived from the sale or exchange of capital assets while capital loss is the loss incurred from the sale or exchange of capital assets.

2. In no case shall capital gains tax on stock transaction be allowed as deduction against income or credited against income tax or any other taxes.

3. The Register of Deeds is prohibited from registering any document transferring real property unless the Commissioner of Internal Revenue or his duly authorized representative has certified that such transfer has been reported and the tax imposed, if any, has been paid.

4. When a natural person disposes of his principal residence, he is exempt from the payment of the capital gains tax due on the sale if the proceeds from the sale or disposition of the principal residence are fully utilized in acquiring or constructing a new principal residence within 18 months from the date of the sale or disposition.

5. Sales, exchange, or disposition of lands and/or building by domestic corporations which are not actually used in the corporate business and are treated as capital assets is subject to 6% capital gains tax.

6. Ordinary loss is the excess of expenses and losses over the income of the taxpayer excluding capital gains and capital losses, or the loss incurred from the sale or exchange of an ordinary asset.

7. The Revenue District Officer (RDO) of the revenue district where the property being transferred is located issues the corresponding Tax Clearance (TCL) or Certificate Authorizing Registration (CAR) or the real property in favor of the transferee.

8. Holding period is the duration for which the taxpayer held the capital asset.

9. Expenses of disposition such as agent's commission and other selling expenses are additions to the selling price.

10. Capital gains realized during each taxable year by individuals or corporations from sale, exchange or disposition of shares of stock in any domestic corporation not traded through a local stock exchange are subject to final tax of 5% for the first P100,000 and 10% for amount in excess of P100,000

11. The final capital gains tax shall be composed on the basis of the entire amount of gain realized from the sale or disposition of shares of stock and the tax so computed shall be paid one time.

12. A final consolidated return or an adjustment return covering all the stock transactions for the last quarter of the taxable year shall be filed on or before April 15 of the following taxable year.

13. Sales, exchanges or other dispositions of real property classified as capital assets, including pacto de retro sales and other forms of conditional sale, by individuals, including estates, and trusts, are taxed at 6% based on the gross selling price or current fair market value as determined by the Commissioner, whichever is higher.

14. Capital assets include all properties held by the taxpayer whether or not connected in trade or business including those enumerated as ordinary assets.

15. The net capital gains realized on stock transactions shall be included in the gross income of the seller in computing his normal income tax liability.

16. As a general rule, the entire amount of gain or loss arising from sale or exchange of real or personal property shall be recognized such that a gain is taxable while a loss is deductible.

17. An individual is qualified to account for his gain on installment basis if the initial payment exceeds 25% of the selling price.

18. Stocks held by dealers in securities are classified as capital assets.

19. If the cost or value of the property cannot be convincingly shown by the taxpayer, then the fair market value shall be considered the gain.

20. When disposing of a property, the nature of the same, i.e., a capital asset or an ordinary asset, does not matter because capital and ordinary assets are given the same tax treatment.