Practice question
A donee receives a genuinely donated apartment and later earns rent from it. The donee invokes the gift exclusion for both. Which is correct?
- The property’s gift value and later rent must be analyzed separately; the exclusion does not automatically cover rent
- Every later rent is the same gift
- The donee cannot ever own the apartment
- Rental income is always excluded if the building was free
- Only the donor’s wishes decide all tax law
Legal references
- https://lawphil.net/judjuris/juri2021/jul2021/gr_226287_2021.html — CIR v. Shinko Electric Industries, G.R. No. 226287, July 6, 2021, main opinion
- https://lawphil.net/statutes/repacts/ra1997/ra_8424_1997.html — NIRC, section 32(B)(1) and (3)
- https://lawphil.net/statutes/repacts/ra2025/ra_12214_2025.html — RA 12214, section 8 amending NIRC section 32
Answer this question in flashcards to review your response and continue practicing.