2016 - SET F - Feb. 28, 2016 Flashcards
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
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.
- 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
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)
- 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. CHED Memorandum Order (CMO) No. 28, Series of 2011
- 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
c. Eduardo G. Ong (2016)
Ofelia Binag (2022)
- How much is the maximum assessment level of machinery classified as commercial?
a. 90%
b. 40%
c. 50%
d. 80%
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%
- 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
d. Fourth degree
- 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
c. July 30, 2009
- 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.
d. He must show proof that he has at least 10 years experience as a real estate sales person.
- 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
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.
- 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
d. house and lot
- 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
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
- An owner whose land abuts a river is called:
a. co-owner
b. landowner
c. naked owner
d. riparian owner
d. riparian owner
- 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
c. rights in fee simple
- 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.
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.
- 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
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
- 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%
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%
- 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
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.
- 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
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
- 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
b. 90,000
Sol.
Prof Fee - P100k x 10%(Wtax) = P10k
= P100k - P10k = P90k
- 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
b. 12 hectares
- 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
b. 1,919,500
- 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
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.
- 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
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.
- 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
d. On or before the tenth (10th) day of the month following the month the withholding was made
- 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
- 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
- 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
- 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
- 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.
- 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
- 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.”
- 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.
- 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
- 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
- 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
- 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
- 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
- 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
- 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.
- 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%
- 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
- 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.
- 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.
- 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
