TAX004

Assignment 2.2: Taxable Net Gift and Donor's Tax

ROCO LOCO, single, donated the following properties on September 21, 2017:

PROPERTY DONATED DONEE VALUE

  Cash   Butch, brother, on account of marriage P            200,000 
  Jewelries   Kate, girlfriend residing in Japan             350,000 
  House & lot   Parents, golden wedding anniversary gift         1,400,000 
  Marie, niece, donation is embodied in the
  Motorcycle  80,000 
will
  Cash   Aster, father of the father of his mother 150,000 
  To the International Rice Research
  Cash 70,000 
Institute
  Car   Fe, sister, donation is revocable 350,000 
  Land   Barangay Tahimik for use of facilities 80,000 

INSTRUCTIONS:

1. How much is the total amount of donation to a stranger?

2. How much is the total donor's tax payable on the donation to stranger assuming taxable
year is 2018?
3. How much is the total taxable net gift assuming 2018 taxable year?
4. How much is the donor's tax due assuming 2018 taxable year?

ANSWER:

JEWELRIES P350,000
1. Amount of Donation P350,000
JEWLRIES P350,000
EXEMPTION (250,000)
NET GIFTS 100,000
TAX RATE         x 6%         
2. Donor’s Tax Payable P6,000
CASH P200,000
JEWELRIES 350,000
HOUSE & LOT 1,400,000
CASH     150,000    
GROSS PROFIT 2,100,00
    (250,000)    
3. Net Taxable Gifts P1,850,000
        x 6%         
4. Donor’s Tax Due P111,000