UNDER TRAIN LAW (RA 10963)

Question 15

Statement 1: A receivable from a debtor can be a donation only if the creditor notifies the debtor that he is not collecting anymore, and the debtor makes a positive act signifying his acceptance of the benevolence of the debtor.

Statement 2: A donation inter vivos that had paid the donor's tax can still be reduced if the legitime of the compulsory heirs were reduced, and there would be a resulting refundable donor's tax.

Statement 1 is false but statement 2 is true

Statement 1 is true but statement 2 is false

Statements 1 and 2 are true

Statements 1 & 2 are false

Question 16

Which of the following statements are false?

The donor's tax for each calendar year is computed on the basis of the total net gifts made during the calendar year.

Gifts in property shall be valued at the Fair market value of the property at the date of donation.

A gift to the International Rice Research Institute is exempt from gift

None of the above

Question 17

Which of the following statements is false?

I.Contracts of donation between husband and wife are void in all cases.

II.The Donation by CJ Sereno to Digong in view of his public office is void in all cases.

III.Donations between persons guilty of adultery or concubinage are void.

IV.Donations to conceived or unborn children are valid

II, III and IV only

II only

I and II only

I only

Question 20

A resident alien made the following donations in 2018. Which is exempt from donor's tax?

All of the above.

Gifts in favor of an educational and/or charitable, religious, cultural or social welfare corporation, institution, foundation, trust or philanthropic organization or research institution or organization, where more than 30% of said gifts were used by such donee for administration purposes.

Gifts made to or for the use of the National Government or any entity created by any of its agencies which is not conducted for profit, or to any political subdivision of the said Government.

Gifts made on account of marriage and before its celebration by parents to each of their legitimate, recognized natural,or adopted children in the amount of P10,000.

Question 21

Which of the following is subject to donor's tax?

Transfer of property for less than adequate and full financial consideration.

Cancellation of debt in exchange for services rendered

All of the above

Share of one of the heirs which was renounced in favor of another heir.

Question 22

All of the following are subject to donor's tax in case there is a transfer for less than adequate and full consideration, except:

Intangible property

Personal property

Real property classified as capital asset

Tangible property

Question 23

All the following statements are correct, except one. If the donor is a nonresident, not citizen of the Philippines:

None of the above

Property situated abroad, but donated to a citizen of the Philippines is exempt from donor's tax.

Property in the Philippines with a value of P300,000, donated to a citizen of the Philippines, is subject to donor's tax.

Property situated in the Philippines but donated to a done abroad will pay the donor's tax.

Question 24

In2018, spouses Romeo and Juliet, both Filipino citizens are owners of a residential house and lot in Quezon City. After the recent wedding of their son (Pedro) to Clara, the spouses donated the said real to them. At the time of donation, the real property has a market value of P2,000,000. The property was mortgage for P200,000 not assumed by the donees. Which of the following statement is correct?

Romeo's taxable gift is P500,000

Juliet's taxable gift is P750,000

Pedro and Clara are subject to income tax based on the fair market value of the real property donated to them.

Romeo's taxable gift is P1,000,000

Question 25

When a husband and wife make a donation to their legitimate child on account of marriage during 2020 taxable year, which of the following statements is correct?

There can only be deduction for dowry if the donation was made before or one year after the celebration of marriage

Each of them is entitled for dowry as a deduction from gross gift

Either of them can waive his/her right to claim dowry as deduction in favor of the other donor such that one of them may claim a total deduction of P20,000.

None of the above.

Question 26

Which of the following is not a deduction from the gross gifts?

Diminution on the property donated specifically provided by the donor.

Unpaid donor's tax on the property assumed by the donee.

Unpaid mortgage on the donated property assumed by the donee.

Unpaid real estate tax on donated property assumed by the donee.

Question 27

On February 2020, Mr. and Mrs. Mapagbigay donated a conjugal parcel of land to their son who was getting married within six (6) months after the date of donation. The fair market value of the property at the time of donation was P5,000,0000. Its fair market value at the time of marriage was P5,500,000. The donated property was subject to P1,000,000 mortgage which was not assumed by donee. How much is the net taxable net gift of Mr. Mapagbigay?

P2,490,000

P2,740,000

P2,500,000

P2,250,000

Next

Question 28

In 2018, Lester made the following donations:

June 1, 2018: To his best friend, Mr. Martin - P1,500,000 on account of marriage celebrated on May 1, 2017.

July 10, 2018: on May 1, 2017. To Mr. Barrera, his mentor a parcel of land worth P1,800,000 subject to the condition that Mr. Barrera would assume the mortgage indebtedness of Lesterin the amount of P400,000.

September 30, 2018: P1,500,000 dowry to his daughter on account of her scheduled marriage on December 25 2018and another wedding gift worth P200,000 on December 31, 2018.

How much is the total net taxable gift for the year?

P4,600,000

P4,570,000

P4,350,000

P4,590,000

Question 29

On February 14, 2018, Clifford donated a property located in Manila and cash as follows:

Land with a fair market value of P680,000: To a legitimate daughter on account of marriage, subject to a mortgage of P80,000 assumed by the daughter.

Cash of P150,000: To a legitimate son, on account of marriage.

What is the correct amount of net gifts made?

P700,000

P750,000

P740,000

P730,000

Question 30

Professor X, a renowned Filipino scientist, made the following donations during 2018.

February 29: Cash of 500,000 to Barangay Discovery.

April 1: - Car to his brother on account of marriage. The car has a FMV of P1,000,000 and is subject to mortgage of P500,000 to be assumed by his brother.

May 31: A land worth P 5,000,000 located in Belgium to his Son

How much is the donor's tax payable on April 1?

P315,000

P300,000

P15,000

P0

Question 31

Professor X, a renowned Filipino scientist, made the following donations during 2018.

February 29: Cash of 500,000 to Barangay Discovery.

April 1: - Car to his brother on account of marriage. The car has a FMV of P1,000,000 and is subject to mortgage of P500,000 to be assumed by his brother.

May 31: A land worth P 5,000,000 located in Belgium to his Son

How much is the donor's tax payable on May 31?

P330,000

P450,000

P464,000

P300,000

Question 36

A donor gave the following donations during 2018:

Jan. 24- Land located in, the Philippines valued at P2,000,000 to her uncle subject to the condition that the latter will pay the donor's tax due and unpaid mortgage amounting to P500,000.

Nov.30- Building in U.S. valued at P4,500,000 to ne Donor's tax paid in U.S. was P400,000.

The donor's tax payable on the November 30 donation shall be

P11,250

P0

P345,000

P248,750

Question 37

ABC Corporation donated P100,000 to the barangay for the purpose of cementing a barangay road where its factory is located.

Statement 1: The donation is exempt from donor's tax.

Statement 2: The corporation may claim full deduction for income tax purposes

Statements 1 8& 2 are false

Statements 1 and 2 are true

Statement 1 is false but statement 2 is true

Statement 1 is true but statement 2 is false

Question 38

Since a donation to a charitable institution has a deduction without any ceiling

Statement 1: The net gift will be zero, so that in computing the donor's tax, the donation may be omitted in gross gifts as if it is likewise omitted in the deductions.

Statement 2: The gross gifts should be reported and the deduction shall be claimed.

Statements 1 and 2 are true

Statement 1 is false but statement 2 is true

Statement 1 is true but statement 2 is false

Statements 1 & 2 are false

Question 39

Statement 1: When a donor's tax return was filed and it was found out by the BIR to have errors which gave rise to a deficiency donor's tax, the donor may be required to pay the deficiency although he does not possess or own the property anymore.

Statement 2: The government is not bound by any agreement between the donor and the donee that the latter shall pay the donor's tax instead of the former.

Statement 1 is false but statement 2 is true

Statements 1 and 2 are true

Statements 1 & 2 are false

Statement 1 is true but statement 2 is false

Question 40

One of the following statements is wrong. When a donor with several donations during the year fails to file the donor's tax return for each of the dates that donations were made:

Each failure is subject to penalties for non-filing of return and nonpayment of the tax on time

Such failure shall be cured by filing a donor's tax return at the end of the year reflecting all donations made within the year and paying the taxes shown in that one return.

He can voluntarily file late the donor's tax return for each date that donations were made and make payments on the tax due shown on each return, with penalties.

If the different donor's taxes were shown on not paid on the original due dates because of requests for extension seasonably filed with the Commissioner of Internal Revenue, each required payment of tax shall have an extended period of not more than six months.

Question

Statement 1: when the done is tax exempt, the donation of a taxable individual is also exempt

Statement 2: Donor's tax shall be paid within 30 days after the donation is made

Statements 1 and 2 are true

Statement 1 is false but statement 2 is true

Statement 1 is true but statement 2 is false

Statements 1 & 2 are false

Question

Which of the following constitutes as a taxable gift?

Creditor's gratuitous discharge of a debtor's obligation

One day rent free use of another's property

A gratuitous transfer by an incompetent

An agreement to make a future transfer which is not supported by a consideration

Question

Statement 1: If the gift is made in properties, it shall be appraised at its fair market value as of the time of donation

Statement 2: In valuing properties for donor's tax, the principles in valuation of properties for estate tax purposes shall apply

Statements 1 and 2 are true

Statement 1 is false but statement 2 is true

Statement 1 is true but statement 2 is false

Statements 1 & 2 are false