DIAGNOSTIC Test- Taxation

REAL ESTATE TAXATION

1.
How much is the amount of basic real property tax that may be imposed by a
province?
A.
1.0% of the assessed value
B.
2.0% of the assessed value
C.
Not exceeding 1.0% of the assessed value
D.
Not exceeding 2.0% of the assessed value
2.

Documentary stamps tax (DST) is one of the taxes due on sale, exchange,
and transfer of capital and ordinary assets. What is the rate to be applied for
the DST of the gross selling price or zonal value plus value of a house or
building in the lot?
A.
1.5%
B.
1.75%
C.
2%
D.
1.25%
E.
1%

3.

What is the tax payable to the local government unit for sale, transfer or
other disposition of real estate, whether the real estate is a capital or
ordinary asset?
A.
Value-added tax
B.
Withholding tax
C.
Capital gains tax
D.
Sales tax
E.
Transfer tax

4.

Mr Reyes sold his vacant residential lot with an area of 300 square meters for
P1,500,000.00. If the zonal value of said property is P3,500 per square meter,
how much will Mr. Reyes pay for Capital Gains Tax?
A.
P50,000.00
B.
P90,000.00
C.
P13,000.00
D.
P35,000.00
E.
P63,000.00

5.

The Documentary Stamps for the Donor's tax shall be paid on:
A.
After 20th day of the following month from notarization of deed
B.
After 10th day of the following month from notarization of deed
C.
After 15th day of the following month from notarization of deed
D.
After 5th day of the following month from notarization of deed
E.
None of the above
In case of redemption of the property sold due to delinquent real property
taxes, the owner may redeem the same including paying interest based on
the purchase price from the date of sale to the date of redemption in the
amount of:
A.
One percent per month
B.
Twenty five percent per annum
C.
Twenty four percent per month

6.

By: R.D.LEONEN-IPA, REB, REA, REC

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DIAGNOSTIC Test- Taxation

D.
E.

Two percent per month

Three percent per month

7.

The basic real property tax for land located in a province shall be at the rate:
A.
Not exceeding 1% of assessed value
B.
Not exceeding 2% of assessed value
C.
1% of assessed value
D.
Not exceeding 6% of assessed value
E.
Not exceeding 5% of assessed value

8.

In case of disagreement with the valuation of the city assessor on the market
value of the property, the owner may appeal the same to the Board of
Assessment Appeals within how many days counted from receipt of the
notice of assessment?
A.
30 days
B.
120 days
C.
90 days
D.
45 days
E.
60 days

9.

A tax on documents, instruments, loan agreements and papers evidencing

the acceptance, assignment, sale or transfer of an obligation, is called:
A.
Value Added Tax
B.
Internal Tax
C.
Documentary Stamps
D.
Sales Tax
E.
Community Tax

10.

A sale of an ordinary asset shall be considered as a sale on installment if the

payments made in the year of sale does NOT exceed:
A.
5% of the selling price
B.
30% of the selling price
C.
15% of the selling price
D.
25% of the selling price
E.
10% of the selling price

11.

After a Deed of Absolute Sale is made, signed and notarized, when should the
DocumentaryStamp tax on sale of real property be paid:
A.
Within 5 days after the close month
B.
Within 30 days
C.
Within 15 days after the close month
D.
Within 10 days after the close month
E.
Within 24 hours

12.

A residential house and lot located in Quezon City is subject to pay the
following real estate tax to the city government:
A.
Transfer tax
B.
Special Education fund tax
C.
Capital gains tax
D.
Business tax

By: R.D.LEONEN-IPA, REB, REA, REC

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DIAGNOSTIC Test- Taxation

E.

Mayor's permit

13.

The rate of tax on the sale of a house and lot owned by a corporation in the
amount ofP2,500,000 classified as a (capital asset)
A.
6%
B.
1.5%
C.
12%
D.
3%
E.
5%

14.

The capital gains tax should be paid within how many days from the
notarization of the deed of sale?
A.
15 days
B.
30 days
C.
7 days
D.
45 days
E.
10 days

15.

Mr. Garcia sold his principal residence for the amount of P5,000,000 in order
to buy another residence that was worth only P4,000,000. As per the
computation the zonal value of the house he sold was P4,500,000 and
assessor's value was P3,500,000. How much capital gains tax will Mr Garcia
still pay the BIR?
A.
P60,000
B.
P240,000
C.
P210,000
D.
P270,000
E.
P300,000

16.
The Local Board of Assessment Appeals may have the following members
except:
A.
City Prosecutor
B.
City Treasurer
C.
Provincial Prosecutor
D.
Registrar of Deeds
E.
City Engineer
17.

18.

In local taxation, issuance of warrant of levy by provincial, municipality, or

city treasurer shallbe done within:
A.
1 year
B.
3 years
C.
4 years
D.
2 years
E.
5 years
The provincial, city, or municipal assessor shall undertake a general revision
of real property assessment every
A.
4 years
B.
5 years
C.
2 years
D.
1 year

By: R.D.LEONEN-IPA, REB, REA, REC

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DIAGNOSTIC Test- Taxation

E.

3 years

19.

The creditable withholding tax on the sale of an ordinary asset should be filed
and paid to the BIR:
A.
Within 10 days from date of sale
B.
Within 30 days from notarization of deed of sale
C.
Within 30 days from date of sale
D.
Within 10 days from notarization of deed of sale
E.
Within 10 days from the close of the month of sale

20.
tax?

Which of the following properties, if sold.will not be subject to value added

A.
B.
C.
D.
E.

3-door commercial apartment for rent

Residential house and lot
Condominium office unit
Office building of a corporation
Residential apartments obeing leased

21.

Real property declared for the first time shall be assessed for the period
during which it would have been liable but in no case for more than____.
A.
36 months
B.
5 years
C.
24 months
D.
2 years
E.
10 years

22.

After full payment of capital gains tax and documentary stamp tax on sale of
a piece of land, the BIR shall then issue this document to the taxpayer.
A.
Certificate Authorizing Payment
B.
Certificate Authorizing Registration
C.
Certificate of Payment
D.
BIR Authority to Accept Payment
E.
Official Receipt

23.

The zonal value of a property can be obtained from?

A.
Bureau of Internal Revenue
B.
Registry of Deeds
C.
Office of the Sherif
D.
Assessors Office
E.
Land Registration Authority

24.

Which price of a house and lot package sold by a dealer is subject to E-VAT?
A.
P1,000,000
B.
P2,500,000
C.
P2,000,000
D.
P 1,500,000
E.
P3,000,000

By: R.D.LEONEN-IPA, REB, REA, REC

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DIAGNOSTIC Test- Taxation

25.

The sale and transfer of title from real estate dealer to a buyer of a house and
lot at P2,000,000.00 is subject to the following EXCEPT:
A.
Creditable Withholding Tax
B.
Transfer and Registration fees
C.
Expanded Value Added Tax
D.
Capital gains tax
E.
Documentary stamp

26.

In case of real property paid under deferred payment basis, the documentary
stamp tax shall accrue upon:
A.
Execution of Deed of Absolute Sale
B.
Notarization of transfer document
C.
Payment of the Option Money
D.
Payment of the full amount
E.
Execution of Contract to Sell

27.

Jake and Rosie sold their house which is their principal residence. You as their
broker have to advise them that the transaction is exempt from the capital
gains tax if they spend how many percent of the sales proceeds in acquiring
or constructing their new principal residence?
A.
50%
B.
75%
C.
100%
D.
60%

28.

For the exemption in payment of capital gains tax to be valid, within how
many months from the sale or disposition of their principal residence should
Jake and Rosie use the proceeds in acquiring or constructing their new
principal residence:
A.
24 months
B.
36 months
C.
18 months
D.
12 months

29.

Despite the exemption from the capital gains tax if Jake and Rosie will use the
sales proceeds in acquiring or constructing their new principal residence,
what must the buyer do before paying the agreed upon selling price in order
to ensure payment of all taxes due on the transaction?
A.
Withhold and deduct the six percent capital gains tax from the agreed
selling price and pay it directly to the BIR for later refund upon proof by
Jake and Rosie.
B.
Withhold and deduct the six percent capital gains tax from the agreed
selling price and deposit the amount in cash or manager's check in
Jake's and Rosie' s account
C.
Demand a provision in the deed of sale that any future liabilities shall
be for the account of the sellers
D.
Withhold and deduct the six percent capital gains tax from the agreed
selling price and deposit the amount in cash or manager's check in an
interest-bearing bank account under an escrow agreement between
the bank, the concerned RDO, the sellers and the buyer

By: R.D.LEONEN-IPA, REB, REA, REC

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DIAGNOSTIC Test- Taxation

30.

At the end of the prescribed period for acquiring or constructing their new
principal residence, Jake and Rosie must submit documentary evidence
showing that they used the proceeds of the sale to acquire a new principal
residence. Within how many days from the end of the prescribed period
should they submit the documentary evidence so that they shall not be
declared deficient in the payment of their capital gains tax on the sale?
A.
Within 15 days
B.
Within 30 days
C.
Within 45 days
D.
Within 60 days

31.

Exemptions on payment of the six percent (6% ) capital gains tax on the sale
of an individual seller's principal residence who will use the proceeds to
purchase a new place of residence may be availed of only once every:
A.
5 years
B.
8 years
C.
10 years
D.
12 years

32.

You have just closed the sale of a 700 square meter commercial lot in Pasig.
The selling price agreed upon is P35,000 per square meter. You have to
advise the seller, who has agreed to pay all the expenses, to prepare several
checks. What amounts should he indicate for the capital gains tax, the
documentary stamps tax, and your 5% commission check? The zonal
valuation of the lot is P37,000 per square meter.
A.
Capital Gains Tax P1,470,000.00 Documentary Stamps Tax P
367,500.00 Commission P1,225,000.00
B.
Capital Gains Tax P1,554,000.00 Documentary Stamps Tax P
388,500.00 Commission P1,225,000.00
C.
Capital Gains Tax P1,554,000.00 Documentary Stamps Tax P
388,500.00 Commission P1,295,000.00
D.
Capital Gains Tax P1,470,000.00 Documentary Stamps Tax P
367,500.00 Commission P1,295,000.00

33.

Your client Ricky has a property in a residential area that is actually being
used as a beauty salon. The tax declarations of the lot and the structure
indicate the following data:Lot area = 275 sqmMarket value of the land =
P4.525.00 per sqm Market value of the structure = P2,400,000.00Assessment
level: Residential= 20%Commercial = 50 %Property tax rate = 1.5%Special
Education Fund = 1% of the assessed valueWhat is the total combined
assessed value of the land and the improvement?
A.
P3,644,375.00
B.
P1,822,187.50
C.
P1,244,375.00
D.
P2,400,000.00

By: R.D.LEONEN-IPA, REB, REA, REC

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DIAGNOSTIC Test- Taxation

34.

A house and lot, with a land area of 400 square meters was sold at
P2,500,000. Per tax declaration the fair market value of the house is P
1,000,000, and the lot is P1,200,000. The zonal value of the lot is P5,000 per
square mete The sale is subject to capital gains tax.What is the tax base?
A.
P2,000,000
B.
P2,200,000
C.
P2,500,000
D.
P3,000,000
E.
P3,500.000

35.

A house and lot, with a land area of 400 square meters was sold at
P2,500,000. Per tax declaration the fair market value of the house is P
1,000,000, and the lot is P1,200,000. The zonal value of the lot is P5,000 per
square mete The sale is subject to capital gains tax. How much is the capital
gains tax?
A.
P120,000
B.
P132,000
C.
P150,000
D.
P180,000
E.
P210,000

36.

A house and lot, with a land area of 400 square meters was sold at
P2,500,000. Per tax declaration the fair market value of the house is P
1,000,000, and the lot is P1,200,000. The zonal value of the lot is P5,000 per
square mete The sale is subject to capital gains tax.How much is the
documentary tax?
A.
P30,000
B.
P33,000
C.
P37,500
D.
P45,000
E.
P47,500

37.
If the
VAT?
A.
B.
C.
D.
E.

value added tax is P720.000, what would be the selling price before

38.
If the
of VAT?
A.
B.
C.
D.
E.

value added tax is P720,000, what would be the selling price inclusive

P3,000,000
P4,000,000
P5,000,000
P6,000,000
P7,000,000

P5,720,000
P6,720,000
P7,720,000
P8,720,000
P9,250,000

By: R.D.LEONEN-IPA, REB, REA, REC

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DIAGNOSTIC Test- Taxation

39.

The document which must not be presented to the Assessor to efect transfer
of tax declaration is:
A.
Copy of the new owner's duplicate title in the name of the Transferee
B.
Copy of the documents of absolute sale or transfer in favor of the
Transferee
C.
Copy of the BIR Certificate Authorizing Registration (CAR)
D.
Copy of the Transfer Tax receipt
E.
Copy of the lot and building plans
40.

Mr Juan de la Rosa sold his property at P5,000,000.00 inclusive of the capital

gains tax, documentary stamp tax and the broker's commission of five (5%)
percent. What will be his net proceeds after deduction of expenses?
A.
P4,380,000.00
B.
P4,375,000.00
C.
P4,500,000.00
D.
P4,365,000.00
E.
P4,000,000.00

By: R.D.LEONEN-IPA, REB, REA, REC

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