Gains from the sale of real property classified as capital assets are generally
subject to a 6% capital gains tax.
*
1 point
TRUE
FALSE
The regular income tax rate is applied to the gain from the sale of real
property classified as ordinary assets.
*
1 point
TRUE
FALSE
Losses from the sale of capital assets can be deducted from ordinary income
to reduce the regular income tax liability.
*
1 point
TRUE
FALSE
A corporation selling real property classified as ordinary assets is subject to a
12% Value-Added Tax (VAT) if the gross sales exceed the VAT threshold
*
1 point
TRUE
FALSE
Installment sales of real property allow the recognition of income
proportionate to collections received in a year.
*
1 point
TRUE
FALSE
Real properties acquired through inheritance are immediately considered
ordinary assets for tax purposes.
*
1 point
TRUE
FALSE
If the seller of a real property is an individual not engaged in business, the
6% capital gains tax is a final tax.
*
1 point
TRUE
FALSE
Properties held primarily for sale to customers in the ordinary course of trade
or business are classified as ordinary assets.
*
1 point
TRUE
FALSE
The tax rate for a corporation’s sale of real property classified as ordinary
assets is different from the regular income tax rate.
*
1 point
TRUE
FALSE
Individuals and corporations are subject to the same capital gains tax rates
on the sale of real properties classified as capital assets.
*
1 point
TRUE
FALSE
Individuals and corporations can claim deductions for necessary and ordinary
business expenses.
*
1 point
TRUE
FALSE
Charitable contributions made to non-government organizations (NGOs) are
fully deductible from gross income.
*
1 point
TRUE
FALSE
Depreciation expenses for business-use assets are allowable deductions.
*
1 point
TRUE
FALSE
Personal, living, and family expenses can be deducted from gross income.
*
1 point
TRUE
FALSE
An individual taxpayer can choose between optional standard deductions
(OSD) or itemized deductions.
*
1 point
TRUE
FALSE
The optional standard deduction (OSD) for individuals is capped at 40% of
gross income.
*
1 point
TRUE
FALSE
Interest expense is always fully deductible, regardless of the circumstances.
*
1 point
TRUE
FALSE
The cost of goods sold (COGS) is a deductible expense for businesses
engaged in manufacturing or trading.
*
1 point
TRUE
FALSE
Losses from illegal activities can be claimed as deductions.
*
1 point
TRUE
FALSE
Expenses incurred for entertainment and recreation of business clients are
100% deductible.
*
1 point
TRUE
FALSE
