Practice question
A qualifying property disposition has PHP250,000 amount realized and PHP200,000 adjusted basis. No special presumed-gain rule, loss issue or adjustment applies. What is the Section40(A) gain entering the relevant income analysis?
- PHP50,000
- PHP250,000 simply because all proceeds are income
- PHP200,000
- PHP450,000
- Zero because basis exists
Legal references
- NIRC RA8424, relevant provisions as amended: https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html Sections32(A)(3),34(C)(1)(a),40(A).
- RA11976 Ease of Paying Taxes Act: https://lawphil.net/statutes/repacts/ra2024/ra_11976_2024.html Section5.
- BIR RMC60-2024, repeal of old Section34(K): https://bir-cdn.bir.gov.ph/BIR/pdf/RMC%20No.%2060-2024.pdf
- RA12214 CMEPA: https://lawphil.net/statutes/repacts/ra2025/ra_12214_2025.html Section9, additional employer PERA deduction.
- BIR RR22-2025, PERA additional deduction: https://bir-cdn.bir.gov.ph/BIR/pdf/RR%20No.%2022-2025.pdf Sections2–3.
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