FINALS - ENUMERATION Flashcards
1
Q
- Four Types of Gross Income for Estates and Trusts:
A
- 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.
2
Q
- Four Participants in a Trust:
A
- Trustor (Grantor)
- Trustee
- Beneficiary
- Fiduciary
3
Q
- Three Allowable Deductions for Estates and Trusts:
A
- Income distributable to beneficiaries
- Income collected by a guardian
- Income during administration retained by fiduciary
4
Q
- Three Conditions for Taxable Estates:
A
- Estate under judicial settlement
- Income received post-death included in estate income
- Taxation from the date of death
5
Q
- Three Differences Between Taxpayer and Conduit Entities:
A
- Taxpayers are taxed on all income earned.
- Conduits pass income to owners for tax purposes.
- Trusts blend elements of both taxpayers and conduits.
6
Q
- List the two main types of general partnerships in tax classification.
A
- General Professional Partnership (GPP) and
- General Co-Partnership (Compania Colectiva)
7
Q
- Enumerate two key responsibilities of GPPs in tax reporting.
A
- File an annual income tax return,
- disclose partners’ names and shares
8
Q
- Name two deductions that GPPs or partners can claim.
A
- Itemized Deductions,
- Optional Standard Deduction (OSD)
9
Q
- List two main tax statuses a co-ownership might have depending on its activities
A
- Non-taxable (if limited to preservation),
- Taxable (if profit-generating)
10
Q
- Identify two situations where GPP partners pay income tax individually.
A
- On distributive share in GPP income,
- on other personal income
11
Q
- Enumerate two types of partnership losses.
A
- Net Operating Loss,
- Division of Losses per Profit Sharing Ratio
11
Q
- List two situations when a GPP’s OSD may not be claimed by partners.
A
- If GPP claims OSD, partners cannot claim it;
- partners’ distributive share is net
12
Q
- State two characteristics that distinguish GPP from other partnerships in taxation.
A
- GPP not taxed as corporation,
- income taxed at partner level
13
Q
- Identify two general co-partnership tax implications for partners.
A
- Considered stockholders,
- profits treated as dividends
14
Q
- List two instances where partners cannot claim further deductions on GPP income.
A
- When distributive share is net income,
- if OSD is applied at the GPP level
15
Q
- List three types of taxable income that include tips.
A
- Tips,
- gratuities, and
- service charges (if voluntary).
16
Q
- Provide three characteristics of gratuities.
A
- Voluntary,
- taxable,
- not subject to withholding tax.
17
Q
- Name three entities involved in tip transactions.
A
- Customers,
- employees,
- tax authorities.
18
Q
- List two differences between tips and regular compensation.
A
- Tips are voluntary;
- compensation is fixed and predetermined.
19
Q
- Enumerate three scenarios where tips are taxable.
A
- Paid directly to employees,
- declared as income,
- included in total gross income.
20
Q
- Five items included in gross income.
A
- Compensation income,
- royalties,
- rents,
- interest,
- pensions
21
Q
- Five examples of de minimis benefits.
A
- 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)
22
Q
- Three items considered taxable compensation.
A
- Honoraria,
- director’s fees,
- stock options
23
Q
- Two examples of passive income subject to final tax.
A
- Interest on bank deposits,
- royalties
24
Q
- Two exclusions from gross income.
A
- Life insurance proceeds,
- de minimis benefits
