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Deductions from Gross Income - Sections 34 and 36: Itemized Deductions

Mr. Santos is a self-employed dentist who runs his own dental clinic. He is preparing his income tax return for the previous year and wants to take advantage of the itemized deductions allowed under Sections 34 and 36 of the Philippine Tax Code.

1. During the year, Mr. Santos incurred various expenses related to his dental practice. Specify at least three (3) deductible items that Mr. Santos can include in his itemized deductions.
2. Mr. Santos also had interest income from his savings account throughout the year. Can he deduct any interest expense related to his savings account from his gross income under the itemized deductions?
3. Mr. Santos acquired a new dental equipment during the year, which he primarily uses for his dental practice. Can he claim any deductions for the cost of acquiring the dental equipment? Explain the applicable provisions under the Tax Code.

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Answer