enumeration Flashcards
What are the four types of gross income for estates and trusts?
- Income accumulated for an unborn beneficiary.
- Income currently distributable to beneficiaries.
- Income received during administration of an estate.
- Income either distributed to beneficiaries or retained by the fiduciary.
Who are the four participants in a trust?
- Trustor (Grantor)
- Trustee
- Beneficiary
- Fiduciary
What are the three allowable deductions for estates and trusts?
- Income distributable to beneficiaries
- Income collected by a guardian
- Income during administration retained by fiduciary
What are the three conditions for taxable estates?
- Estate under judicial settlement
- Income received post-death included in estate income
- Taxation from the date of death
What are the three differences between taxpayer and conduit entities?
- Taxpayers are taxed on all income earned.
- Conduits pass income to owners for tax purposes.
- Trusts blend elements of both taxpayers and conduits.
What are the two main types of general partnerships in tax classification?
- General Professional Partnership (GPP)
- General Co-Partnership (Compania Colectiva)
What are two key responsibilities of GPPs in tax reporting?
- File an annual income tax return.
- Disclose partners’ names and shares.
What are two deductions that GPPs or partners can claim?
- Itemized Deductions
- Optional Standard Deduction (OSD)
What are two main tax statuses a co-ownership might have depending on its activities?
- Non-taxable (if limited to preservation)
- Taxable (if profit-generating)
In what two situations do GPP partners pay income tax individually?
- On distributive share in GPP income.
- On other personal income.
What are two situations when a GPP’s OSD may not be claimed by partners?
- If GPP claims OSD, partners cannot claim it.
- Partners’ distributive share is net.
What are two types of partnership losses?
- Net Operating Loss
- Division of Losses per Profit Sharing Ratio
What are two characteristics that distinguish GPP from other partnerships in taxation?
- GPP not taxed as corporation.
- Income taxed at partner level.
What are two general co-partnership tax implications for partners?
- Considered stockholders.
- Profits treated as dividends.
What are two instances where partners cannot claim further deductions on GPP income?
- When distributive share is net income.
- If OSD is applied at the GPP level.
What are three types of taxable income that include tips?
- Tips
- Gratuities
- Service charges (if voluntary)
What are three characteristics of gratuities?
- Voluntary
- Taxable
- Not subject to withholding tax.
Who are the three entities involved in tip transactions?
- Customers
- Employees
- Tax authorities
What are two differences between tips and regular compensation?
- Tips are voluntary.
- Compensation is fixed and predetermined.
What are three scenarios where tips are taxable?
- Paid directly to employees.
- Declared as income.
- Included in total gross income.
What are five items included in gross income?
- Compensation income
- Royalties
- Rents
- Interest
- Pensions
What are five examples of de minimis benefits?
- Monetized unused vacation leave credits (10 days)
- Medical cash allowance (up to PHP 1,500 per semester)
- Rice subsidy (up to PHP 2,000 per month)
- Uniform allowance (up to PHP 6,000 annually)
- Laundry allowance (up to PHP 300 per month)
What are three items considered taxable compensation?
- Honoraria
- Director’s fees
- Stock options
What are two examples of passive income subject to final tax?
- Interest on bank deposits
- Royalties
What are two exclusions from gross income?
- Life insurance proceeds
- De minimis benefits
