Practice question
What is the section 32(B)(3) distinction for genuinely donated property and later income from it?
- Both are always excluded forever
- Neither can ever be excluded
- Only the wrapping paper matters
- The gift’s value is excluded, but income from the property is included subject to other applicable rules
- Donation automatically converts rent into another gift
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.