2016 - SET F - Feb. 28, 2016 Flashcards
1
Q
I71. The foreclosed asset of the bank amounting to 1,800,000 was sold to Mr. A, the highest bidder. If ever the said property is not redeemed by the mortgagor, how much is the tax on the sale of the said asset?
a. 90,000
b. 27,000
c. 108,000
d. 54,000
A
c. 108,000
Sol.
- Selling Price P1,800,000
X Capital Gain Tax 6%
Tax On Sale (CGT) 108,000
Note:
Who pays for capital gains tax foreclosure?
“In foreclosure sales of mortgaged real properties, the creditor-bank is the statutory (permitted) seller, representing the owner-mortgagor of the real property, so that said bank becomes liable to pay the capital gains tax due on such foreclosure sale based on the bid price in the auction sale.
2
Q
- A family residential home was sold at 5,000,000. The BIR fair market value is 6,000,000. The fair market value per tax declaration is 4,000,000. After 10 calendar months, the owner bought a new residential house worth 3,000,000 fully utilizing the proceeds of the previous sale. How much is the capital gains tax on the sale of the previous home?
a. 120,000.
b. 216,000
c. 0
d. 144,000
A
d. 144,000
Given:
SP. - P5,000,000
FMV - P6,000,000
FMV per Tax - P4,000,000
Present Cost of House - P3,000,000
Find: CGT of Previous Home
Sol.
5m(SP)-3m(Cost of New House) = 2m(Gain)
FMV whichever is Higher = 6m x 6% = P360,000
P360,000 x (2m/5m or 40%) = P144,000
Note: 60% of 5m already consumed (bought 3m)
3
Q
- Policies, Standards and Guidelines of BS in Real Estate Management
a. CHED Memorandum Order (CMO) No. 28, Series of 2011
b. CHED Memorandum Order (CMO) No. 38, Series of 2010
c. Ministry Order No. 39
d. RA 9646
A
a. CHED Memorandum Order (CMO) No. 28, Series of 2011
4
Q
- The current chairman of Professional Regulatory Board Of Real Estate Service (PRBRES) Is?
a. Angeline T. Chua Chiaco
b. Florencio C. Diño
c. Eduardo G. Ong
d. Rafael M. Fajardo
A
c. Eduardo G. Ong (2016)
Ofelia Binag (2022)
5
Q
- How much is the maximum assessment level of machinery classified as commercial?
a. 90%
b. 40%
c. 50%
d. 80%
A
d. 80%
Taxation:
Local Government Code of 1991 (Republic Act No. 7160). This Code establishes the system and defines the powers of provincial, city, municipal, and barangay governments in the Philippines. 6 Dec 2022
Provinces - 1%
Cities and Municipalities - 2%
A. On Lands
(R.T.) Residential, Timberland - 20% (Assessed Value or AV)
(A) Agricultural - 40% (AV)
(C.I.M.) Commercial, Industrial, Machinery - 50% (AV)
B. On Building s and Other Structure
B.1 Residential
FMV Not Over Assessment Level
P175,000 0%
175,000 300,000 10%
300,000 500,000 20%
500,000 750,000 25%
750,000 1,000,000 30%
1,000,000 2,000,000 35%
2,000,000 5,000,000 40%
5,000,000 10,000,000 50%
10,000,000 60%
B.2 Agricultural
FMV Not Over Assessment Level
300,000 25%
300,000 500,000 30%
500,000 750,000 35%
750,000 1,000,000 40%
1,000,000 2,000,000 45%
2,000,000 50%
B.3
FMV Not Over Assessment Level
300,000 30%
300,000 500,000 35%
500,000 750,000 40%
750,000 1,000,000 50%
1,000,000 2,000,000 60%
2,000,000 5,000,000 70%
5,000,000 10,000,000 75%
10,000,000 80%
C. On Machineries
A - Agricultural - 40%
R - Residential - 50%
C.I. - Commercial / Industrial - 80%
6
Q
- For the rule on conflict of interest to apply to a real estate broker selling a property owned by a relative, within what civil degree of relation is involved?
a. Second degree
b. Fifth degree
c. Third degree
d. Fourth degree
A
d. Fourth degree
7
Q
- RA 9646, The Real Estate Service Act of the Philippines became effective last:
a. July 30, 2010
b. June 15, 2009
c. July 30, 2009
d. June 30, 2010
A
c. July 30, 2009
8
Q
- The following are the qualifications of the applicants for real estate broker licensure exams, except:
a. A citizen of the Philippines
b. A holder of a relevant bachelor’s degree from a state university or college, or other educational institution duly recognized by the CHED: Provided, that he has completed at least 120 credit units of real estate subjects and training from accredited service providers.
c. He is of good moral character, and must not have been convicted of any crime of moral turpitude,
d. He must show proof that he has at least 10 years experience as a real estate sales person.
A
d. He must show proof that he has at least 10 years experience as a real estate sales person.
9
Q
- A real estate dealer or lessor whose gross receipt does not exceed 1,919,500 in 2012 shall be liable to pay:
a. transfer tax
b.12 % value added tax
c. real property tax
d. 3% percentage tax
A
d. 3% percentage tax
Percentage tax is a business tax imposed on persons, entities, or transactions specified under Sections 116 to 127 of the National Internal Revenue Code of 1997 (also known as Tax Code), as amended, and as required under special laws.
The 3% tax on persons who are not VAT-registered because their annual sales or receipts do not exceed the VAT threshold of PHP 3 million
The standard VAT rate, which applies to most supplies of goods, properties, and services, is 12 percent of the gross selling price or gross value. The purchase of goods, properties, or services by the government or government-controlled corporations is generally subject to a 5 percent final withholding tax on VAT.
10
Q
- A foreigner may own the following properties in the Philippines, except:
a. house built on the leased land
b. commercial office condominium unit
c. residential condominium unit
d. house and lot
A
d. house and lot
11
Q
- Mr. X died leaving a net estate of 40,000,000. How much is the estate tax due?
a. 8,000,000
b. 7,215,000
c. 6,000,000
d. 5,504,000
A
b. 7,215,000
Sol.
Solution:
Net Estate =40m
1st 10m = 1,215,000
Excess of 10M (40-10=30m)
= 30m x 20% (estate tax)
= 6m
= 6m + 1,215,000
= 7,215,000
Estate Tax 2016
Over But Not Over The tax shall be Plus Of the excess over
- 200,000 Exempt - -
200,000 500,000 0 5% 200,000
500,000 2,000,000 15,000 8% 500,000
2,000,000 5,000,000 135,000 11% 2,000,000
5,000,000 10,000,000 465,000 15% 5,000,000
10,000,00 1,215,000 20% 10,000,000
12
Q
- An owner whose land abuts a river is called:
a. co-owner
b. landowner
c. naked owner
d. riparian owner
A
d. riparian owner
13
Q
- The “bundle of rights theory” also means:
a. rights of land beneficiary
b. rights of buyer
c. rights in fee simple
d. rights of vendor
A
c. rights in fee simple
14
Q
- Which of the following statements is not a valid criterion for ethical behaviour?
a. Ethics is the name we give to our concern for good behaviour. We feel an obligation to consider not only our own personal well being but also that other and of human society as a whole.
b. Ethics is right for right’s sake
c. A Code of Ethics is subservient to laws and regulations. Therefore, any act that is not any law is a violation of ethical practice.
d. Ethics is having a high moral sense. The capacity to perceive what is right is measured primarily by the application of the Golden Rule.
A
c. A Code of Ethics is subservient to laws and regulations. Therefore, any act that is not any law is a violation of ethical practice.
15
Q
- Under the Foreign Investor’s Lease Act, may lease land in the Philippines for
a. 10 years
b. 25 years
c. 50 years
d. 99 years
A
c. 50 years
PD 471 - Amended by RA 7652
General Rule: 25 yrs + 25 yrs
RA 7652 – Foreign Investor’s Lease Act
With industrial and commercial purposes: 50yrs + 25yrs
16
Q
- The withholding tax for a property sold by a real estate dealer worth 500,000 is
a. 6%
b. 1.5%
c. 3%
d. 5%
A
b. 1.5% Withholding Tax
Withholding tax is an advance payment of income tax. In other words, withholding tax is income tax paid in advance.
The buyer shall withhold the tax based on the gross selling price or fair market value of the property, whichever is higher, on the first installment.
Selling Price of 500k or less - 1.5%
Selling price of 500k but not more than P2m - 3%
Selling Price more than P2m - 5%
Where the Seller/transferor is not habitually engaged in real estate business - 6%
17
Q
- The following lands of the public domain are not alienable and disposable, except:
a. forest and timberland
b. national parks
c. mineral land
d. agricultural land
A
d. agricultural land
Public Domain - Lands owned by the State and has control and administration over it. It also includes those lands owned by the general public and cannot be made the subject of commerce (Business) even by the State.
18
Q
- Mr. and Mrs. Nagpakasal married on August 3, 1988. They did not execute any pre-nuptial agreement. What is the property regime that will govern their property relations?
a. Conjugal partnership of gains
b. Absolute Separation of Property
c. Mixed Property Relations
d. Absolute Community of Property
A
d. Absolute Community of Property
- Before August 3, 1988 (Family Code)
- Without marriage settlement – Conjugal Partnership of Gains
Properties exclusive for wife - Paraphernal
Properties exclusive for husband - Capital
- After August 3, 1988
Without Pre-Nuptial – Absolute Community of Property
19
Q
- Mr. A declared that his income for the year will be 720,000. If he will be earning a professional fee amounting to 100,000, how much will he receive net of withholding tax?
a. 10,000
b. 90,000
c. 100,000
d. 85,000
A
b. 90,000
Sol.
Prof Fee - P100k x 10%(Wtax) = P10k
= P100k - P10k = P90k
20
Q
- Filipino citizens can acquire alienable land of public domain up to :
a. 1,000 hectares
b. 12 hectares
c. 500 hectares
d. none of the above
A
b. 12 hectares
21
Q
- In 2012, which price of the residential lot sold by a dealer is not subject to VAT?
a. 3,199,200
b. 1,919,500
c. 4,000,000
d. all of the above
A
b. 1,919,500
22
Q
- How much is the standard deduction allowable in the computation for estate tax due?
a. 1,500,000
b. 500,000
c. 1,000,000
d. actual or 1,000,000 whichever is lower
A
c. 1,000,000
The estate tax is six (6) percent of the total net estate value.
Who pays for the estate tax in the Philippines?
An individual who inherits a real estate in the Philippines is required to pay an estate tax in order to legally transfer the property to their name. It is not a tax on property, according to the Bureau of Internal Revenue (BIR) of the Philippines.
23
Q
- Ms. Nagpapaupa has 20 units of residential apartments. Her total annual gross receipts for 2012 are 3,072,000.00. How much is the value-added tax for the year 2012, if any?
a. 329,142.86
b. 368,640.00
c. 307,200.00
d. 0
A
d. 0
Solution:
2012:
Rent – 12,800/mo. Not Vatable
Gross Income Per year – 1,919,500 – Not Vatable
*3,072,000 / 20 units / 12 months = 12,800/mo.
Therefore not vatable bcoz did not exceed 12,800 and gross receipts did not exceed 1,919,500
Increase the VAT-exempt threshold on the lease of residential properties from P12,800/month to P15,000/month.
24
Q
- When should the creditable withholding tax be paid?
a. On or before 6 months from the decedents death
b. On or before 30 days from the notarization of the deed of sale
c. On or before 5 days after the close of the month when the withholding was made
d. On or before the tenth (10th) day of the month following the month the withholding was made
A
d. On or before the tenth (10th) day of the month following the month the withholding was made
25
25. Lands awarded to an agricultural tenant under CARP law cannot be converted for non-agricultural use within how many years from the grant of the emancipation patent?
a. 3 years
b. 10 years
c. 5 years
d. 2 years
c. 5 years
26
26. Under RA 9646, the partnership and the corporation shall regularly submit a list of its real estate service practitioners to the Commission and to the Sec as part of its reportorial requirement. There shall at least be one (1) licensed real estate broker for every
a. Twenty (20) real estate salespersons
b. Ten (10) accredited real estate salespersons
c. Fifty (50) real estate salesperson
d. Twenty (20) accredited real estate salespersons
d. Twenty (20) accredited real estate salespersons
27
27. If the -Selling Price inclusive of VAT is 3,360,000. How much is the VAT and the Selling Price exclusive of VAT?
a. VAT: 336,000; Selling Price exclusive of VAT: 3,024,000
b. VAT: 360,000; Selling Price exclusive of VAT: 3,000,000
c. VAT: 403,200; Selling Price exclusive of VAT: 2,956,800
d. cannot be determined
b. VAT: 360,000; Selling Price exclusive of VAT: 3,000,000
Sol.
CGT = 3,360,000 x 3 /28 = 360,000
NSP = 3,360,000 = 360,000 = 3,000,000
28
28. There are times when a broker has to share his listings with other brokers. In case of sale, the listing broker should do the following, except:
a. Should share the commission as agreed upon.
b. Should negotiate directly with the clients without the consent of the other broker
c. Should not seek unfair advantage over his fellow brokers
d. Should not criticize publicly the other broker.
b. Should negotiate directly with the clients without the consent of the other broker
29
29. Any violation of RA 9646, including the violation of this IRR committed by licensed real estate broker, shall be meted with a penalty of
a. fine of less than 100,000 or imprisonment of less than 2 years, or both such fine and imprisonment upon the discretion of the court.
b. fine of not less than 200,000 or imprisonment of not less than 3 years, or both such fine and imprisonment upon the discretion of the court.
c. fine of not less than 100,000 or imprisonment of not less than 2 years, or both such fine and imprisonment upon the discretion of the court.
d. fine of 100,000 and imprisonment of 2 years.
c. fine of not less than 100,000 or imprisonment of not less than 2 years, or both such fine and imprisonment upon the discretion of the court.
30
30. The sale or transfer to title from a real estate dealer to a buyer of a house and lot at 15,000,000 is subject to the following, except:
a. creditable withholding tax
b. transfer tax and registration fees
c. documentary stamp tax
d. capital gains tax
d. capital gains tax
31
31. Under the Code of Ethics of Realty Service Practitioners, the Golden Rule means:
a. “Do not do unto others as you want others do unto you”
b. “Treat others the same as what others think they should be treated”
c. “Do unto others what you do not want others do unto you”
d. “Treat others as you like them to treat you.”
d. “Treat others as you like them to treat you.”
32
32. The donation of a house and lot to the daughter is not subject to the following tax and charges
a. Transfer tax
b. Donor’s tax
c. Documentary stamp tax
d. Registration fees
c. Documentary stamp tax - 1.5%
Transfer Tax - Twenty percent (20%) of the value, if the prior decedent died more than four (4) years but not more than five (5) years prior to the death of the decedent, or if the property was transferred to him by gift within the same period prior to his death.
Donor's tax - 6%
- This return shall be filed within thirty (30) days after the gift (donation) is made.
- The return shall be filed within one (1) year from the decedent's death.
33
33. It is the principle of ownership which mandates property owners to use their property in a manner that will promote not only their interest but also the general welfare.
a. Regalian Doctrine
b. Stewardship Concept
Bundle of Rights Theory
d. Principle of Conformity
b. Stewardship Concept
34
34. A real estate appraiser who was licensed under the DTI may be allowed to register without examination under the principle of
a. Reciprocity clause
b. Grandfather clause
c. Escalation clause
d. Diplomatic Clause
b. Grandfather clause
35
35. RA 9225 provides that natural born citizens of the Philippines, who have lost their citizenship by reason of their naturalization as citizens of a foreign country are deemed to have reacquired Philippine Citizenship (who shall thereafter enjoy full civil and political rights) after compliance with what process?
a. Submission of an affidavit of good faith
b. Taking an oath of allegiance
c. Submitting DOJ with sworn statement of five (5) credible guarantors
d. Deposit of 1 Million with the BID
b. Taking an oath of allegiance
36
36. You were able to close the sale of 200 sq. m. commercial lot in Makati City. The selling price is 100,000 per sq. m. The zonal value is 120,000 per sq.m. The seller agreed to pay all the expenses. How much will he pay for Capital Gains Tax, Documentary Stamp Tax and 5% Broker’s Commission?
a. Capital Gains Tax - 1,200,000
Documentary Stamp Tax - 300,000
Commission - 1,000,000
b. Capital Gains Tax -1,440,000
Documentary Stamp Tax - 360,000
Commission -1,000,000
c. Capital Gains Tax - 1,440,000
Documentary Stamp Tax - 360,000
Commission - 1,200,000
d. Capital Gains Tax - 1,200,000
Documentary Stamp Tax - 300,000
Commission - 1,200,000
b. Capital Gains Tax -1,440,000
Documentary Stamp Tax - 360,000
Commission -1,000,000
Sol.
Selling Price (200 sqm x 100,000/sqm) = P20,000,000
ZV (200 sqm x 120,000 /sqm) = 24,000,000
CGT (Whichever is higher 24,000,000 x 6%) = 1,440,000
DST (24,000,000 x 1.5%) = 360,000
Comm (1m x 5%) = 1m
37
37. The chairman and the members of the Professional Regulatory Board of Real Estate Service shall hold office for a term of:
a. 6 years
b. 3 years
c. 2 years
d. 1 year
b. 3 years
38
38. The following are considered to be ordinary asset except:
a. Condominium units sold by the developer
b. land and building where the manufacturing plant is located
c. Acquired assets of the banks
d. Real property not used in trade or business of the taxpayer
d. Real property not used in trade or business of the taxpayer
39
39. Fundamental Principles of Local Taxation, except:
a. the appraisal, assessment of real property shall be equitable
b. real property shall be classified for assessment purposes on the basis of its actual use
c. the appraisal, assessment, levy and collection of real property tax shall be let to any private person.
d. real property shall be assessed on the basis of a uniform classification within each LGU.
c. the appraisal, assessment, levy and collection of real property tax shall be let to any private person.
40
40. Quezon City may provide a discount for early payment of the annual tax in the discount amount not exceeding:
a. 10%
b. 5%
c. 20%
d. 2% per month not exceeding 36 months
c. 20%
41
41. The gross estate of the decedent is 2,000,000 and the actual funeral expenses incurred amounts to 110,000. How much is the amount of the funeral expense that can be deducted from the gross estate?
a. 110,000
b. 100,000
c. 200,000
d. 0
b. 100,000
Actual funeral expenses (whether paid or unpaid) up to the time of interment, or an amount equal to five percent (5%) of the gross estate, whichever is lower, but in no case to exceed P200,000.
Sol.
P2,000,000 x 5% = P100,000
42
42. The following are the conditions in order for the sale of a capital asset be exempted from capital gains tax, except:
a. sale or disposition of principal residence
b. by a natural person
c. proceeds of which is fully utilized in acquiring or constructing a new principal residence within 18 calendar month from the date of sale or disposition
d. the said tax exemption can only be availed of once in every five years.
d. the said tax exemption can only be availed of once every five years.
An exemption can only be availed once every 10 years.
43
43. Real property declared for the first time shall be assessed for taxes for the period during which it would have been liable but in no case for more than ____ years prior to the date of initial assessment based on the applicable schedule of values in force during the corresponding period.
a. 5 years
b. 3 years
c. 10 years
d. 30 years
c. 10 years
It could be paid one time for the entire year or quarterly.
Real property declared for the first time shall be assessed for back taxes but for a period not more than 10 years before the date of initial assessment. Back taxes shall be computed based on the applicable schedule of values in force during the corresponding period.
If the back taxes were paid on or before the end of the quarter from the date of the owner or authorized person’s receipt of the assessment, interest for delinquency shall not be imposed. Otherwise, said taxes shall be subject to an interest rate of 2 percent per month or a fraction thereof from the date of receipt of the assessment, and until such taxes are fully paid.
44
44. The real estate practitioner, in relation to the government, is expected to perform as such except:
a. Secure all the necessary licenses, permits and authority
b. Pay any and all taxes, fees, dues, levies or charges
c. Encourage, abet, tolerate, or participate in the aversion or illegal reduction in the payment of all taxes, fees, dues, levies or charges.
d. Should not offer or agree to pay, split or rebate any commission or fee
c. Encourage, abet, tolerate, or participate in the aversion or illegal reduction in the payment of all taxes, fees, dues, levies or charges.
Participate in the aversion or illegal reduction in payment
45
45. The Documentary Stamps for the Donor’s Tax shall be paid on:
a. After 30 days from notarization of Deed
b. After 10th day of the following month from notarization of Deed
c. After 5th day of the following month from notarization of Deed
d. None of the above
d. None of the above
The Donor's Tax Return (BIR Form No. 1800) shall be filed within thirty (30) days after the date the gift (donation) is made.
Rate - The donor's tax for each calendar year shall be six percent (6%) computed on the basis of the total gifts in excess of Two Hundred Fifty Thousand Pesos (P250,000) exempt gifts made during the calendar year.
If the donor is engaged in business donated at least fifty thousand (50,000) and wanted to be exempted from the donor's tax and to claim a full deduction of the gifts given, a notice of donation by a donor should be given to the Revenue District Office (RDO) within 30 days after the receipt of the donee's duly issued
46
46. Unpaid real property tax is subject to 2% per month interest up to a maximum period of :
a. 12 months
b. 24 months
c. 36 months
d. until paid
c. 36 months
3 years
47
47. The following are exempted from real property tax, except
a. Non profit or religious cemeteries or burial grounds
b. Machineries and equipment that are actually, directly and exclusively used by local districts and government owned and controlled corporation.
c. All real properties owned by duly registered cooperatives as provided for under RA 6938.
d. Real Property owned by the Republic of the Philippines or any of its political subdivision even when the beneficial use thereof has been granted to a taxable person.
d. Real Property owned by the Republic of the Philippines or any of its political subdivisions even when the beneficial use thereof has been granted to a taxable person.
- Granted to a taxable person
Exempted from RPT.
- Charitable Institutions
* Properties actually, directly, and exclusively used for religious operations, charitable operations, or educational purposes. Ownership in itself does not count, but rather, the fact of actual, direct, and exclusive use of the such owned property.
- Government Properties. But the tax exemption ceases if the beneficial use of the real property is granted to a taxable person.
48
48. Statement No. 1 : The law that governs the Professional Regulations Commission (PRC) is RA 8981
Statement No. 2. The Various regulatory boards under the PRC are grouped into an association referred to as the Philippine Association of Professional Regulatory Boards (PAPRB)
a. Statement No. 1 is true; Statement No. 2 is false
b. Statement No. 1 is false; Statement No. 2 is true
c. both statements are true
d. both statements are false
c. both statements are true
REPUBLIC ACT NO. 8981. AN ACT MODERNIZING THE PROFESSIONAL REGULATION COMMISSION, REPEALING FOR THE PURPOSE OF PRESIDENTIAL DECREE NUMBERED TWO HUNDRED AND TWENTY-THREE (PD 223), ENTITLED "CREATING THE PROFESSIONAL REGULATION COMMISSION AND PRESCRIBING ITS POWERS AND FUNCTIONS," AND FOR OTHER PURPOSES.
49
49. A Manufacturing firm sold a part of its office space for 7,000,000.00. What tax should the company pay relating to the sale?
a. creditable withholding tax of 420,000
b. creditable withholding tax of 350,000
c. a capital gains tax of 420,000
d. exempt
a. creditable withholding tax of 420,000
Sol.
P7,000,000 (SP) x 6% (CWT)
= P420,000 (CWT)
6% CWT, not habitually doing Real Estate Business
* CWT is for Ordinary Assets ( Property directly used in business whether tangible or intangible asset))
* CGT of 6% is for Capital Asset (Personal Property, ex. personal house, jewelry, car)
50
50. When should the transfer tax be paid?
a. within 30 days from the date of the execution of the deed or from the date of the decedents death.
b. within 60 days from the close of the month of the execution of the deed or from the date of the decedents death.
c. within 6 months from the date of the execution of the deed or from the date of the decedents death.
d. within 60 days from the date of the execution of the deed or from the date of the decedents death.
d. Within 60 days from the date of the execution of the deed or from the date of the decedent's death.
Transfer Tax - Twenty percent (20%) of the value, if the prior decedent died more than four (4) years but not more than five (5) years prior to the death of the decedent, or if the property was transferred to him by gift within the same period prior to his death.
51
51. The professional identification card, upon satisfying the requirements of the Board such as, but not limited to, attendance in the CPE program, shall be renewed every
a. 5 years
b. 2 years
c. 3 years
d. upon expiration on December 31 of each year
c. 3 years
52
52. The following are exempted from the Acts Constituting the Practice of Real Estate Service, except:
a. Any receiver, trustee or assignee in bankruptcy or insolvency proceedings
b. Any person acting pursuant to the order of any court or justice
c. Any person, natural or juridical, who shall directly perform by himself/herself the acts mentioned in Section 3 of RA 9646
d. Real estate developers who are regulated by and registered with HLURB
d. Real estate developers who are regulated by and registered with HLURB
- Receiver or Trustee, person Acting, Owner of property are Representative and owner
- letter D is Real Estate Developer which needs licensed Broker
53
53. Mr. Sy is going to occupy the condominium unit of Mr. Lim for a period of 1 year for his office. How much creditable withholding tax if any should Mr. Sy deduct and remit with the BIR?
a. 10% withholding tax
b. 15% withholding tax
c. 5% withholding tax
d. no withholding tax
c. 5% withholding tax
- Mr. Sy income for his office is a Capital Asset or personal property which is subject for CGT and DST when
54
54. Ms. X incurred medical expenses amounting to 250,000 a year before her death. How much is the amount of medical expenses that is deductible from the gross estate?
a. 700,000
b. 250,000
c. 500,000
d. 1,000,000
b. 250,000
54
55. Owner A gives owner B an easement across A’s land to shorten the distance B has to travel to reach land he owns. The land that B owns benefited by this easement and is known as the :
a.Estate in gross
b. Servient Estate
c. Dominant Estate
d. Lien Estate
c. Dominant Estate
55
56. The following should be indicated on the document when the real estate practitioner signs, issues or uses in connection with the practice of the profession:
a. Certificate of Registration
b. Professional Identification Card
c. PTR Number
d. all of the above
d. all of the above
56
57. The Foreign Investments Act of 1991 allows former natural born Filipinos to acquire land for business purposes in a rural area not to exceed an area of
a. 1,000 sqms.
b. 1 hectare
c. 5,000 sqms
d. 3 hectares.
d. 3 hectares.
57
58. The real estate tax on the house and lot owned by Mr. Topnotcher may be paid without penalty interest in
a. annual payments
b. 2 semi-annual payments
c. 4 payments
d. 4 equal quarterly payments
d. 4 equal quarterly payments
58
59. The documentary stamp on lease of real estate is 3.00 for the first 2,000.00 or fraction thereof an additional
a. 0.50 for every 1,000 in excess of first 2,000
b. 1.00 for every 1,000 in excess of first 2,000
c. 1.50 for every 1,000 in excess of first 2,000
d. 2.00 for every 1,000 in excess of first 2,000
b. 1.00 for every 1,000 in excess of first 2,000
59
60. Zoning is the exercise of a government of its __________
a. police power
b. power of eminent domain
c. power of taxation
d. right of priority
a. police power
60
61. Refers to grant of public land to persons seeking to establish and maintain agricultural homes on condition of actual, continuous and personal occupancy of the area as a home including cultivation and improvement of the land.
a. Free Patent
b. Homestead Patent
c.Miscellaneous Sales Patent
d. Sale Patent
b. Homestead Patent
61
62. results of the licensure examination shall be released by the board:
a. within 10 days from the close of the month of the examination
b. within 5 days from the last day of examination
c. within 10 days from the last day of examination
d. within 3 days from the last day of examination
c. within 10 days from the last day of examination
62
63. The land of Mr. A located in Metro Manila has a fair market value of 20,000,000. The land was considered to be idle land. The assessment level of the land is 20%. How much is the Idle Land Tax?
a. 200,000
b. 120,000
c. 40,000
d. 80,000
a. 200,000
RA 7160 (Local Govt Code) - 5% Idle Land Tax
Sol.
20,000000 x 20% = 4m
4m x 5% = 200,000
REAL PROPERTY TAX RATES
- Provinces - not to exceed 1% of assessed value
- City or Municipality within MM - not to exceed 2% of Assessed Value
- Special Education Funds (SEF) - 1% on the Assessed Value, in addition to basic real property tax.
- Additional Tax on Idle Lands - maximum of 5%
Assessment Levels (%) for LAND
- Residential - 20%
- Agricultural - 40%
- Commercial - 50%
- Industrial - 50%
- Mineral -50%
- Timberland - 20%
63
64. The amount of bond that the licensed real estate broker and the private appraiser must post in the PRC in accordance with RA 9646.
a. 5,000
b. 1,000
c. 20,0000
d. 100,000
c. 20,0000
64
65. The acquisition of title by actual, open, continuous, and uninterrupted possession for a period of time under claim of title.
a. Inheritance
b. Involuntary grant
c. Reclamation
d. Prescription
d. Prescription
65
66. In RA 9646, the Board may suspend or revoke the Certificate of Registration or the Professional Identification card or suspend real estate service practitioner in the practice of profession, if found guilty after due notice and hearing on any of the following instances, except:
a. Unprofessional and ethical conduct
b. Allowing an unqualified person to advertise or to practice the profession by using one’s certificate of registration or professional identification card, or special or temporary permit.
c. Malpractice or violation of any of the provision of RA No. 9646, the IRR and the Code of Ethics of Responsibilities for real estate service practitioners.
d. Failure to attend the scheduled oath taking.
d. Failure to attend the scheduled oath taking.
66
67. Any Filipino citizen may apply for a free patent title under RA 10023 and in case of highly urbanized cities, the same should not exceed
a. 200 sqm
b. 500 sqm
c. 750 sqm
d. 1000 sqm
a. 200 sqm
Section 1. Qualifications. - Any Filipino citizen who is an actual occupant of a residential land may apply for a Free Patent Title under this Act: Provided; That in highly urbanized cities, the land should not exceed two hundred (200) square meters; in other cities, it should not exceed five hundred (500) square meters; in first class and second class municipalities, it should not exceed seven hundred fifty (750) square meters; and in all other municipalities, it should not exceed one thousand (1,000) square meters; Provided, further, That the land applied for is not needed for public service and/or public use.
67
68. The amount of net estate which is exempted from estate tax is:
a. 200,000
b. 100,000
c. 0
d. 1,000,000
a. 200,000
RA 8424
New Tax Rate = 6%
68
69. The sale of property worth P 500,000.00 considered as ordinary asset by a person who is not habitually engaged in real estate business shall be subject to a creditable withholding tax rate of:
a. 1.5%
b. 3.0%
c. 5.0%
d. 6.0%
d. 6.0%
69
70. Which of the following newspaper line ads is blatantly unethical?
a. House on a very quiet neighborhood
b. Flood Free Street
c. The value of the property will double in one year
d. Beautiful view
c. The value of the property will double in one year
70
71. In the official seal of the Professional Regulatory Board of Real Estate Service (PRBRES), color green represents?
a. color of service
b. life and light
c. ethical standards and prosperit
d. environment and ecology
d. environment and ecology
71
72. The real estate practitioners in his advertisements on brochures of properties for sale should present but not:
a. a true picture of the property and its improvements
b. its rights and interest therein, including its liens and encumbrances
c. indicate name, firm, address and license number
d. conceal relevant information and other related facts
d. conceal relevant information and other related facts
72
73. A broker sold a house and lot priced at 4,480,000 inclusive of 12% VAT. How much is the 5% commission of the broker net of creditable withholding tax?
a. 224,000
b. 180,000
c. 200,000
d. 250,880
b. 180,000
Find: Net Commission
Cost of House P4,480,000
Less: VT (4,480,000 x3/28) 480,000
NSP (4,480,000/1.12 (112%) 4,000,000
5% Comm (4mx5%) 200,000
Less: 10% CWT (20,000)
Net Comm 180,000
73
74. Under RA 7160, agricultural lands of more than one (1) hectare are subject to additional 5% tax on idle land when at least:
a. 40% of the land is uncultivated
b. the entire land is uncultivated
c. ½ of the area is uncultivated
d. 20 percent of the area is uncultivated
c. ½ of the area is uncultivated
R.A. 7160 Local Government Code of 1991
Sectio 237. For purposes of real property taxation, idle lands shall include the following: (a) Agricultural lands, more than one (1) hectare in area, suitable for cultivation, dairying, inland fishery, and other agricultural uses, one-half (1/2) of which remain uncultivated or unimproved by the owner of the property or person having legal interest therein. Agricultural lands planted to permanent or perennial crops with at least fifty (50) trees to a hectare shall not be considered idle lands. Lands actually used for grazing purposes shall likewise not be considered idle lands.
74
75. In case of acquisition of the title to real property, prescription in bad faith requires a period of
a. 10 years
b. 30 years
c. 50 years
d. 5 years
b. 30 years
A person can apply for ownership of alienable agricultural land if he has continuously occupied the same in good faith and there are no other claimants/applicants for… 10 years
Extraordinary adverse possession or prescription in bad faith means that a person can apply for ownership of alienable agricultural land if he has continuously occupied the same for… 30 years
75
76. A bank’s acquired assets which form part of its real estate inventories at the close of its accounting period shall be classified as:
a. Ordinary Asset
b. Capital Asset
c. Fixed Asset
d. Performing Asset
a. Ordinary Asset
76
77. Mr. Galante donated 20,000,000 to XYZ corporation. Compute the Donor’s Tax due:
a. 2,504,000
b. 1,500,000
c. 6,000,000
d. 3,000,000
c. 6,000,000
20m x 30% = 6m
If Donee is a stranger: 30%. of the net gifts.
New Tax Rate: Uniform Tax rate of 6% for donations to relatives or strangers
77
78. The removal of land from one owner to another when a stream suddenly changes its channel is called:
a. alluvium
b. avulsion
c. accession
d. accretion
b. avulsion - removal of land
78
79. When should the notice of death be filed with the BIR?
a. within 1 month from the decedents death
b. within 6 month from the decedents death
c. within 2 months from the decedent’s death
d. within 30 days from the decedent’s death
c. within 2 months from the decedent’s death
79
80. Statement No. 1: Donor’s and Estate Taxes are paid in the domicile or residence of the donor or decedent.
Statement No. 2: Capital Gains Tax is paid where the property is located
a. Statement No. 1 is true; Statement No. 2 is false
b. Statement No. 1 is false; Statement No. 2 is true
c. both statements are true
d. both statements are false
c. both statements are true
80
81. A land located in a residential subdivision in Metro Manila was predominantly used for business. The fair market value of the property is 2,000,000. How much is the assessed value of the property?
a. 1,000,000
b. 400,000
c. 20,000
d. 8,000
a. 1,000,000 - Predominantly used for business.
2m x 50% (Commercial) = 1m
A. On Lands
(R.T.) Residential, Timberland - 20% (Assessed Value or AV)
(A) Agricultural - 40% (AV)
(C.I.M.) Commercial, Industrial, Machinery - 50% (AV)
81
82. The rate of Special Education Fund Tax that is imposed on the real property:
a. 1% of the zonal value
b. 1% of the fair market value
c. 1% of the assessment level
d. 1% of the assessed value
d. 1% of the assessed value
Real Property Tax Rates
- Provinces - not to exceed 1% of assessed value
- City or Municipality with MM - not to exceed 2% of Assessed Value
- Special Education Fund (SEF) - 1% on the Assessed Value, in the addition to basic real property tax
- Additional Tax on Idle Lands -maximum of 5%
82
83. Mr. Y has a 1-year lease contract with Mr. Z. The monthly rental is 25,000.00. How much is the documentary stamp tax on the lease contract?
a. 298
b. 301
c. 23
d. 26
b. 301
P3 for 1st 2000 /P1 for remaining every 1k
= 25,000 x 12 = 300,000
= 300,000-2000=298,000
= 298,000/1000 = P298+3 =301
Train LAW (NEW LAW)
P6 for 1st 2000 /P2 for remaining every 1k
=25,000 x 12 = 300,000
300,000-2000=298,000
298,000/1000=P298+6=304
83
84. Accredited real estate salesperson must be under the supervision of the real estate broker and should indicate
a. Name and license number of the broker
b. Email address of the broker
c. The website of the broker
d. Name and field of specialization of the broker
a. Name and license number of the broker
84
85. On January 5, 2013, X Corporation sold a residential condominium unit to Mr. Rich amounting to 2,000,000.00. On April 15, 2013, X Corporation sold the adjacent unit to Mr. Rich amounting to 2,000,000. How much is the VAT for the said transactions, if any?
a. exempt
b. 428,571.43
c. 500,000
d. 480,000.00
b. 428,571.43
Find: VAT - 12%
Sol.
SP (4,000,000 /1.12) 3,571428.57 - /
Add Cost VAT 12%. 428,571.43
(4mx3/28) ----------------
NSP Jan. 5, 2013. - 2m. 4,000,000.00 - x (Given)
April 15, 2013 - 2m.
85
86. A real estate broker employed a real estate salesperson to help him sell condominium units. Under the RESA Law, the real estate salesperson must be a:
a. Registered real estate salesperson HLURB
b. Licensed and registered real estate salesperson
c. Accredited real estate salesperson
d. Licensed real estate salesperson
c. Accredited real estate salesperson
86
87. This refers to an official in the local government unit, who performs appraisal and assessment of real properties, including plants, equipment, and machineries, essentially for taxation purposes.
a. Accountants
b. Appraisers
c. Assessors
d. Treasurer
c. Assessors
87
88. Alien can acquire a real estate in the following instances except:
a. Acquisition by hereditary succession
b. Acquisition before the 1935 Constitution
c. Purchase of aliens of more than 40% of the units in a condominium project
d. Purchase of a former natural born Filipino citizens not exceeding 1,000 square meters for urban land to be used solely for his residence.
c. Purchase of aliens of more than 40% of the units in a condominium project
88
89. A parcel of land through which the right of way is granted in favor of an adjoining land is called
a. dominant estate
b. servient estate
c. estate
d. any of the above
b. servient estate
89
90. The maximum retention limit for a landowner under the CARP law is:
a. 3 hectares
b. 5 hectares
c. 12 hectares
d. 10 hectares
b. 5 hectares
Retention of landowner under R.A. 6657 CARP reform is 5 hectares.
The Comprehensive Agrarian Reform Program, more commonly known as CARP, is an agrarian reform law of the Philippines whose legal basis is the Republic Act No. 6657, otherwise known as the Comprehensive Agrarian Reform Law (CARL). The CARP covered all public and private agricultural lands regardless of the crops planted. It also included public domain lands that were suitable for agriculture. It sought to redistribute land not only to farmers and farm workers but also to other landless poor.
447.
Retention of landowner’s children who is at least 15 years old, actually tilling and managing the farm under R.A 6657 (CARP) is 3 hectares per child.
90
91. The law referred to as Comprehensive Agrarian Reform Program Extension with Reforms (CARPER) is
a. RA 9646
b. RA 7160
c. RA 9700
d. RA 6657
c. RA 9700
Comprehensive Agrarian Reform Program Extension with Reforms
91
92. At present, the law governing real estate service practice is:
a. Real Estate Statute Administration of the Philippines
b. Real Estate Act of the Philippines
c. Realty Service Act of the Philippines
d. Real Estate Service Act of the Philippines
d. Real Estate Service Act of the Philippines
92
93. This refers to any natural or juridical person engaged in the business of developing real estate development project for his/her or its own account and offering them for sale or lease
a. real estate
b. real estate developer
c. real estate service practitione
d. real property
b. real estate developer
93
94. A “for sale” sign should not be placed on a property by more than one broker and only if:
a. the sign is placed at least one meter away from the other sig
b. The sign should be of the same size as the other signs
c. Authorized by the owner
d. It should not exceed three signs on the property
e. The address of the broker is indicated in the sign
c. Authorized by the owner
94
95. Under BP 185, a former natural born Filipino may acquire residential land in the Philippines even if already a foreign citizen provided that it should not exceed the following area in case of rural land
a. 1 hectare
b. 3 hectares
c. 1,000 sqms.
d. 5,000 sqms.
a. 1 hectare
95
96. It means all lands including mines and natural resources belong to the State:
a. Repatration
b. Regalian Doctrine
c. Steward Concept of Owner
d. Escheat
b. Regalian Doctrine
96
97. Which information is false?
a. Capital Gains Tax is 6% of the total contract price or fair market value determined by BIR or FMV determined by Assessor whichever is higher
b. Documentary Stamp Tax is 1.5 % of the total contract price or fair market value determined by BIR or FMV determined by Assessor whichever is higher
c. Transfer Tax is computed at 1% of the contract price or Fair Market Value whichever is higher
d. The transfer tax must be paid within 60 days from the date of acquisition
c. Transfer Tax is computed at 1% of the contract price or Fair Market Value whichever is higher
97
98. Mr. X sold the property for 10,000,000 inclusive of capital gains tax, documentary stamp tax and 5% broker’s commission. What will be his net proceeds after the deduction of the expenses?
a. 8,888,888.89
b. 11,428,571.43
c. 8,750,000
d. 1,250,000
c. 8,750,000
Find: Net Proceeds / Deed Sale/Capital Asset
SP P10,000,000
Less: Cost
6% CGT
1.5% DST
5% Comm
------ 1,250,000
12.5% -----------------
NSP (10,000,000 x87.5%) P 8,750,000
98
99. ABC Development Corporation, a corporation engaged in real estate business, sold a condominium unit amounting to 2,500,000 to Mr. X. Mr. X made a downpayment of 1,000,000 on March 1, 2015, how much creditable withholding tax must be paid on March 1, 2015?
a. 125,000
b. 5,000
c. 150,000
d. 50,000
a. 125,000
Find: CWT / Ordinary Asset
SP P2,500,000 - (2m+ = 5% CWT)
CWT 5% 125,000
99
100. An applicant for the licensure examination for real estate consultants must show proof that he or she at least how many years of experience as a licensed real estate appraiser:
a. 5 years
b. 20years
c. 10 years
d. 15 years
a. 5 years
100
101. Condemnation of private property for public use is called the right of:
a. Seizure
b. Escheat
c. Eminent Domain
d. Acquisition
c. Eminent Domain
The right of a government to take private property for public use upon payment of its fair market value. Eminent domain is the basis for condemnation proceedings.
101
102. The following are lands of the public domain, except:
a. Forest
b. National Parks
c. Commercial
d. Agricultural
e. Mineral
c. Commercial
Commercial is a private/business property
102
103. Which one is not an example of involuntary alienation of the property?
a. sale for tax delinquency
b. foreclosure of mortgage
c. expropriation
d. sale to an alien buyer
d. sale to an alien buyer
103
104. Those who are citizens of the Philippines from birth without having to perform any act to acquire or perfect their Philippine citizenship:
a. naturalized citizen
b. former natural born citizen
c. natural born citizen
d. dual citizen
c. natural born citizen
104
105. The interest rate that the local government unit can impose is :
a. 20% per annum of the amount of tax due from the time it becomes due until fully paid
b. 20% per month of the amount of tax due from the time it becomes due but not exceeding 36 months
c. 2% per annum of the amount of tax due from the time it becomes due but not exceeding 36 months
d. 2% per month of the amount of tax due from the time it becomes due but not exceeding 36 months
d. 2% per month of the amount of tax due from the time it becomes due but not exceeding 36 months
105
106. The land of Mr. A located in Metro Manila has a fair market value of 10,000,000. The assessment level of the land is 20%. What is the for the basic real property tax due?
a. 2,000,000
b. 20,000
c. 40,000
d. 400,000
c. 40,000
- FMV P10,000,000 x 20% Assessed Level = P2,000,000
- P2,000,000 x 2% (City) = P40,000
Real Property Tax Rates
- Provinces - not to exceed 1% of assessed value
- City or Municipality with MM - not to exceed 2% of Assessed Value
- Special Education Fund (SEF) - 1% on the Assessed Value, in the addition to basic real property tax
- Additional Tax on Idle Lands -maximum of 5%
106
107. Mr. Nah Matay left a net estate amounting to 20,000,000, how much is the net estate tax due?
a. 2,000,000
b. 2,504,000
c. 2,215,000
d. 3,215,000
d. 3,215,000
1st 10m = 1,215,000 (Tax Rate)
Bal. 10m x 20% (Tax Rate) b = 2,000,000
---------------
Net Estate Tax 3,215,000
OLD TAX SCHEDULE:
a. If Donee is a realtive
Net Estate Bracket Tax Rate
Over. But Not Over
- 200,000 Exempt
200,000. 500,000 5% of excess over 200,000
500,000 2,000,000 15,000 + 8% of excess over 500,000
2,000,000 5,000,000 135,000+11% of excess over 2,000,000
5,000,000 10,000,000. 465,000+15% of excess over 5,000,000
10,000,000 1,215,000+20% of excess over 10,000,000
b. If donee is a stranger: 30% of the net gifts
NEW TAX RATE
Tax Base Tax Rate
Value of Net Estate 6%
*Value of Net Estate = Value of gross estate less allowable deductions.
107
108. Assuming the same values in No. 1, if ever the estate tax was paid a year after its due date, how much is the total estate tax payable?
a. 5,465,500
b. 4,661,750
c. 1,446,750
d. 3,630,800
b. 4,661,750
3,215,000 x 45% = 1,446,750
= 3,215,000+1,446,750
= 4,661,750
108
109. Mr. X donated a land amounting to 4,000,000 to his 3rd cousin. Assuming there is no allowable deduction, how much is the donor’s tax?
a. 600,000
b. 1,200,000
c. 1,000,000
d. 240,000
Solution: 4,000,000 x 30% = 1,200,000
= ========
b. 1,200,000
109
110. The grandfather clause can be found in what section of the Implementing Rules and Regulation of RA 9646
a. Section 20
b. Section 10
c. Section 25
d. Section 14
a. Section 20
