Practice question
Under Section40(A), ordinary gain from disposition of property is generally measured by what, apart from special tax regimes?
- Amount realized over the applicable basis or adjusted basis
- Every peso of proceeds with no basis inquiry in all cases
- Only the number of pages in the deed
- Only the amount placed in a savings account
- Only the buyer’s opinion of the seller
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.
Answer this question in flashcards to review your response and continue practicing.