Practice question
A personal asset outside Section 24(D) is transferred below fair market value. All facts establish an ordinary-course transaction that is bona fide, at arm's length and free of donative intent. Which Section 100 qualification is relevant?
- Every price below market necessarily creates a taxable gift despite the proviso.
- All personal assets are governed solely by the real-property capital-gains rule.
- A business transaction can never involve any tax question.
- The buyer automatically becomes the donor's heir.
- The TRAIN proviso treats the specified ordinary-course transfer as made for adequate and full consideration.
Legal references
- NIRC Sections84-85,98 and104, read with TRAIN amendments: https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html
- RA10963, TRAIN, estate and donor tax amendments including Sections99-100: https://lawphil.net/statutes/repacts/ra2017/ra_10963_2017.html
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