DMC College Foundations In-house Review (TAX)

DONORS TAX
1. A married couple donated a conjugal property to their son who is getting married. Which of the
following statement is incorrect in connection with donation?
a. The husband is the proper claimant of dowry, being head of the family.
b. The husband and wife shall file two separate returns.
c. The husband and wife can claim P10,000 dowry each.
d. The gross gift of the husband shall be one-half of the value of the donated property.
2. Which of the following is not a tax-free donation?
a. Domain for prizes to be given to athletes in local sports competition held in the Philippines
sanctioned by a national sports association.
b. Net gifts by an individual to a non-stranger in the amount of P100,000 during the calendar year.
c. A cash donation amounting P1,000,000 made to candidate last election who is aspiring for the
position of senator which donation was reported to the COMELEC.
d. Renunciation by a surviving spouse of his share in the absolute community in favor of his common
children with the decedent.
3. A married non-resident alien donates share of stock valued P300,000 to his son who is getting married
to a Filipina in the Philippines. Assuming there is reciprocity, how much is the gross gift and the
exempt dowry?
a. P300,000 gross gift; P10,000 dowry c. P150,000 gross gift; P 0 dowry
b. P300,000 gross gift; P 0 dowry d. P 0 gross gift; P 0 dowry
4. Statement 1: Transfer inter vivos to the National Government for public use is a deduction from the
gross gifts.
Statement 2: Transfer mortis causa to the National Government for public use is a deduction from the
gross estate.
a. True; true b. true; false c. false; false d. false; true
5. A non-resident alien donor gifted his son and his daughter in law on account of their forthcoming
marriage in the Philippines. The maximum exempt dowry was:
a. P10,000 to son; P10,000 to daughter c. P10,000 to son; P 0 to daughter
b. P 0 to son; P10,000 to daughter d. P 0 to son; P 0 to daughter
6. Joseph sold his apartment to Evelyn, his best friend, for P1,000,000. The fair market value of the land
at the time of sale was P1,500,000. For donors tax purposes, which of the following statements was
correct?
a. Joseph would subject to donors tax at 30% based on P500,000.
b. Joseph was not subject to donors tax at 30% based on P1,500,000.
c. Joseph was not subject to donors tax but to 6% capital gains tax based on selling price.
d. Joseph would be subject to donors tax or capital gains tax depending on his choice.
7. If an individual performs services for a creditor who in consideration thereof cancels the debt, the
cancellation of indebtedness may amount to a
a. Gift b. Capital contribution c. Donation inter vivos d. Payment of income
8. What is the value, for tax purposes, of a gift made in contemplation of death?
a. At FMV as of the date of death c. At FMV as of the date of gift
b. At FMV as of the date of acceptance by donee d. At an arbitrary value given by the donor
9. This refers to a tax imposed on the transfer without consideration of property between two or more
persons who are living at the time of transfer.
a. Excise tax b. donors tax c. gift tax d. transfer taxes
10. When a property is donated, the basis of the donors tax is
a. The cost of acquisition if acquired by purchase or the FMV at acquisition date, whichever is
higher
b. The agreed value of donor and done
c. The fair market value at the time of donation
d. Any of the above
11. In 2015, Juan dela Cruz gave a loan of P250,000 to Petra, his secretary. In 2015, as an act of
generosity, Juan dela Cruz condoned the debt of Petra in his last will and testament. Juan dela Cruz
died in 2015. The condonation of the debt of Petra is
a. Donation inter vivos subject to donors tax c. Payment of compensation for services
b. A deduction of gross estate of J. dela Cruz d. Donation mortis causa subject to Estate tax
12. Donors tax return for gifts made to stranger is to be filed and paid
a. 30 days after the gift is made
b. 30 days after the close of the month when the gift is made
c. 30 days after the close of the quarter when the gift is made
d. On or before the 25th of the month following the close of the month when the gift was made.
13. A non-resident donor has the following donations on a particular date:
Donation to City of Dipolog for public purpose P150,000
Donation to his son on account of marriage P200,000
Donation to his mother on account of marriage P50,000
Donation to charitable institution (30% used for admin) P70,000
Donation to an illegitimate child who assumes the P15,000 unpaid
mortgage on the donated property P90,000
Gift to his friend on account of his friends birthday P10,000
How much are the gifts made to strangers?
a. P300,000 b. P370,000 c. P230,000 d. P150,000
14. How much gifts made to relatives?
a. P490,000 b. P350,000 c. P340,000 d. P230,000
15. How much are total deductions?
a. P185,000 b. P255,000 c. P245,000 d. P265,000
16. How much is the taxable net gifts?
a. P395,000 b. P315,000 c. P325,000 d. P305,000