Practice question
Explain the distinction between gross property-sale proceeds and gain under Section40(A). An ordinary taxable disposition realizes PHP700,000 with PHP450,000 adjusted basis; no special presumed-gain regime applies. Compute the gain and explain why that is not yet the final tax.
Legal references
- NIRC RA8424, relevant provisions as amended: https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html Sections32(A)(3),40(A).
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