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Questions and Answers
What prompted Mr. and Mrs. Salomon to donate their conjugal land worth P500,000?
In the case of Mr. and Mrs. Salomon, what value of jewelry was donated on account of marriage more than a month after the donation?
What was the fair market value of the piece of land given by Mr. Pinagpala to his daughter Estela on account of her graduation?
What did Mr. and Mrs. Pinagpala donate to Juana, a family friend, on account of her birthday?
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What type of organization received a donation of P250,000 from Mr. and Mrs. Pinagpala?
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What is the type of property that Mr. Cabarles donated to Leona on account of her recent marriage?
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In a donation of real (immovable) property, when is the donor's tax applicable?
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Which scenario would trigger the cessation of a donor's right to exercise the reserve power over a donated property?
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In a donation, what is the term used for the act of giving a mango farm to Sergio with Angelica reserving the right to the fruits for five years?
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Which statements accurately reflect the nature of donation under Philippine tax laws?
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What type of tax is imposed on a donation by a nonresident citizen of a franchise exercised outside of the Philippines?
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Which donation scenario involves reserving the right to rentals for five years from the date of donation?
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Study Notes
Donor's Tax
- Donation of real (immovable) property, the value of which exceeds P5,000, is subject to donor's tax.
- Donation by a non-resident citizen of a franchise is subject to donor's tax even if such franchise is exercised outside of the Philippines.
Reservation of Right
- If the donor reserves the right to live in the donated property, the donation is not complete until the right ceases.
- If the donor reserves the right to the rentals for a certain period, the donation is not complete until the end of the period.
- If the donor reserves the right to the fruits of the property for a certain period, the donation is not complete until the end of the period.
Tax Computation
- The donor's tax payable is based on the fair market value of the donated property.
Specific Donations
- Donation of conjugal land worth P500,000 to three sons is subject to donor's tax.
- Donation of jewelry worth P75,000 to a child from a previous marriage is subject to donor's tax.
- Donation of a building worth P750,000, with 40% co-owned by another person, is subject to donor's tax.
Donations by Mr. and Mrs. Pinagpala
- Donation of 10,000 shares worth P50 per share to a legitimate daughter is subject to donor's tax.
- Donation of an antique jewelry worth P50,000 to a legitimate daughter is subject to donor's tax.
- Donation of a piece of land worth P1,000,000 to a legitimate daughter is subject to donor's tax.
- Donation of cash worth P100,000 to Mrs. Pinagpala's sister is subject to donor's tax.
- Donation of P250,000 to an accredited non-stock non-profit organization is exempt from donor's tax.
- Donation of a piece of land valued at P700,000 to a company is subject to donor's tax.
- Donation of cash worth P200,000 to a legitimate son is subject to donor's tax.
Donations by Mr. and Mrs. Cabarles
- Donation of a conjugal property in the Philippines worth P600,000 to a legitimate child is subject to donor's tax.
- Donation of a property in the USA worth P200,000 to a nephew is subject to donor's tax.
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Description
Test your knowledge on Donor's Tax with this set of multiple choice exercises from the University of Santo Tomas Integrated Review Course in Taxation. Questions cover various scenarios involving donor's tax and applicable regulations.
