Real Estate Taxation

1. 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?

1.5%

1.75%

2%

1.25%

1%

2. A tax on documents, instruments, loan agreements and papers evidencing the acceptance,
assignment, sale or transfer of an obligation, is called:

Value Added Tax

Internal Tax

Documentary Stamps

Sales Tax

Community Tax

3. The basic real property tax for land located in a province shall be at the rate:

Not exceeding 1% of assessed value

Not exceeding 2% of assessed value

1% of assessed value

Not exceeding 6% of assessed value

Not exceeding 5% of assessed value

4. 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.

Certificate Authorizing Payment

Certificate Authorizing Registration

Certificate of Payment

BIR Authority to Accept Payment

Official Receipt

5. 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?

P50,000.00

P90,000.00

P13,000.00

P35,000.00

P63,000.00

6. If the value added tax is P720,000, what would be the selling price inclusive of VAT?

P5,720,000

P6,720,000

P7,720,000

P8,720,000

P9,250,000

7. The capital gains tax should be paid within how many days from the notarization of the deed of
sale?

15 days

30 days

7 days

45 days

10 days

8. 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:

5 years

8 years

10 years

12 years

9. 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?

50%

75%

100%

60%

10. 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?

Demand a provision in the deed of sale that any future liabilities shall be for the accountof the sellers

11. The zonal value of a property can be obtained from?

Bureau of Internal Revenue

Registry of Deeds

Office of the Sheriff

Assessors Office

Land Registration Authority

12. 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:

24 months

36 months

18 months

12 months

13. If the value added tax is P720.000, what would be the selling price before VAT?

P3,000,000

P4,000,000

P5,000,000

P6,000,000

P7,000,000

14. 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:

5% of the selling price

30% of the selling price

15% of the selling price

25% of the selling price

10% of the selling price

15. The rate of tax on the sale of a house and lot owned by a corporation in the amount of
P2,500,000 classified as a (capital asset)

6%

1.5%

12%

3%

5%

16. 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?

P4,380,000.00

P4,375,000.00

P4,500,000.00

P4,365,000.00

P4,000,000.00

17. The provincial, city, or municipal assessor shall undertake a general revision of real property
assessment every

4 years

5 years

2 years

1 year

3 years

18. 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?

Value-added tax

Withholding tax

Capital gains tax

Sales tax

Transfer tax

19. After a Deed of Absolute Sale is made, signed and notarized, when should the Documentary
Stamp tax on sale of real property be paid:

Within 5 days after the close month

Within 30 days

Within 15 days after the close month

Within 10 days after the close month

Within 24 hours

20. How much is the amount of basic real property tax that may be imposed by a province?

1.0% of the assessed value

2.0% of the assessed value

Not exceeding 1.0% of the assessed value

Not exceeding 2.0% of the assessed value

21. 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:

One percent per month

Twenty five percent per annum

Twenty four percent per month

Two percent per month

Three percent per month

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

3-door commercial apartment for rent

Residential house and lot

Condominium office unit

Office building of a corporation

Residential apartments obeing leased

23. Which price of a house and lot package sold by a dealer is subject to E-VAT?

P1,000,000

P2,500,000

P2,000,000

P 1,500,000

P3,000,000

24. 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?

P30,000

P33,000

P37,500

P45,000

P47,500

25. A residential house and lot located in Quezon City is subject to pay the following real estate tax to the city government:

Transfer tax

Special Education fund tax

Capital gains tax

Business tax

Mayor's permit

26. 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?

P120,000

P132,000

P150,000

P180,000

P210,000

27. 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?

Within 15 days

Within 30 days

Within 45 days

Within 60 days

see p.201 of reviewer manual

Explanation

see p.201 of reviewer manual

28. The Local Board of Assessment Appeals may have the following members except:

City Prosecutor

City Treasurer

Provincial Prosecutor

Registrar of Deeds

City Engineer

29. 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:

Creditable Withholding Tax

Transfer and Registration fees

Expanded Value Added Tax

Capital gains tax

Documentary stamp

30. The document which must not be presented to the Assessor to effect transfer of tax declaration is:

Copy of the new owner's duplicate title in the name of the Transferee

Copy of the documents of absolute sale or transfer in favor of the Transferee

Copy of the BIR Certificate Authorizing Registration (CAR)

Copy of the Transfer Tax receipt

Copy of the lot and building plans

31. 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?

P60,000

P240,000

P210,000

P270,000

P300,000

32. 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 sqm
Market value of the land = P4.525.00 per sqm
Market value of the structure = P2,400,000.00
Assessment level:
Residential= 20%
Commercial = 50 %
Property tax rate = 1.5%
Special Education Fund = 1% of the assessed value

What is the total combined assessed value of the land and the improvement?

P3,644,375.00

P1,822,187.50

P1,244,375.00

P2,400,000.00

33. 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____.

36 months

5 years

24 months

2 years

10 years

34. 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?

30 days

120 days

90 days

45 days

60 days

35. In local taxation, issuance of warrant of levy by provincial, municipality, or city treasurer shall
be done within:

1 year

3 years

4 years

2 years

5 years

36. 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.

Capital Gains Tax P1,470,000.00Documentary Stamps Tax P 367,500.00Commission P1,225,000.00

Capital Gains Tax P1,554,000.00Documentary Stamps Tax P 388,500.00Commission P1,225,000.00

Capital Gains Tax P1,554,000.00Documentary Stamps Tax P 388,500.00Commission P1,295,000.00

Capital Gains Tax P1,470,000.00Documentary Stamps Tax P 367,500.00Commission P1,295,000.00

Capital Gains Tax based on whichever is higher
Documentary Stamp based on whichever is higher

Explanation

Capital Gains Tax based on whichever is higher
Documentary Stamp based on whichever is higher

37. The Documentary Stamps for the Donor's tax shall be paid on:

After 20th day of the following month from notarization of deed

After 10th day of the following month from notarization of deed

After 15th day of the following month from notarization of deed

After 5th day of the following month from notarization of deed

None of the above

No Documentary Stamp on Donor and Estate Tax.

Explanation

No Documentary Stamp on Donor and Estate Tax.

38. 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?

P2,000,000

P2,200,000

P2,500,000

P3,000,000

P3,500.000

39. The creditable withholding tax on the sale of an ordinary asset should be filed and paid to the
BIR:

Within 10 days from date of sale

Within 30 days from notarization of deed of sale

Within 30 days from date of sale

Within 10 days from notarization of deed of sale

Within 10 days from the close of the month of sale

40. In case of real property paid under deferred payment basis, the documentary stamp tax shall
accrue upon:

Execution of Deed of Absolute Sale

Notarization of transfer document

Payment of the Option Money

Payment of the full amount

Execution of Contract to Sell

Real Estate Taxation

1. 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?

2.

What first name or nickname would you like us to use?

2. A tax on documents, instruments, loan agreements and papers evidencing the acceptance,assignment, sale or transfer of an obligation, is called:

3. The basic real property tax for land located in a province shall be at the rate:

4. 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.

5. 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?

6. If the value added tax is P720,000, what would be the selling price inclusive of VAT?

7. The capital gains tax should be paid within how many days from the notarization of the deed ofsale?

8. Exemptions on payment of the six percent (6% ) capital gains tax on the sale of an individualseller's principal residence who will use the proceeds to purchase a new place of residence may be availed of only once every:

9. Jake and Rosie sold their house which is their principal residence. You as their broker have toadvise them that the transaction is exempt from the capital gains tax if they spend how manypercent of the sales proceeds in acquiring or constructing their new principal residence?

10. 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?

11. The zonal value of a property can be obtained from?

12. 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 inacquiring or constructing their new principal residence:

13. If the value added tax is P720.000, what would be the selling price before VAT?

14. 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:

15. 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)

16. 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 netproceeds after deduction of expenses?

17. The provincial, city, or municipal assessor shall undertake a general revision of real propertyassessment every

18. 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?

19. After a Deed of Absolute Sale is made, signed and notarized, when should the DocumentaryStamp tax on sale of real property be paid:

20. How much is the amount of basic real property tax that may be imposed by a province?

21. 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:

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

23. Which price of a house and lot package sold by a dealer is subject to E-VAT?

25. A residential house and lot located in Quezon City is subject to pay the following real estate tax to the city government:

28. The Local Board of Assessment Appeals may have the following members except:

29. The sale and transfer of title from real estate dealer to a buyer of a house and lot atP2,000,000.00 is subject to the following EXCEPT:

30. The document which must not be presented to the Assessor to effect transfer of tax declaration is:

33. Real property declared for the first time shall be assessed for the period during which it wouldhave been liable but in no case for more than____.

34. In case of disagreement with the valuation of the city assessor on the market value of theproperty, the owner may appeal the same to the Board of Assessment Appeals within how many days counted from receipt of the notice of assessment?

35. In local taxation, issuance of warrant of levy by provincial, municipality, or city treasurer shallbe done within:

37. The Documentary Stamps for the Donor's tax shall be paid on:

38. 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?

39. The creditable withholding tax on the sale of an ordinary asset should be filed and paid to theBIR:

40. In case of real property paid under deferred payment basis, the documentary stamp tax shallaccrue upon:

2. A tax on documents, instruments, loan agreements and papers evidencing the acceptance,
assignment, sale or transfer of an obligation, is called:

7. The capital gains tax should be paid within how many days from the notarization of the deed of
sale?

8. 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:

9. 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?

12. 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:

15. The rate of tax on the sale of a house and lot owned by a corporation in the amount of
P2,500,000 classified as a (capital asset)

16. 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?

17. The provincial, city, or municipal assessor shall undertake a general revision of real property
assessment every

19. After a Deed of Absolute Sale is made, signed and notarized, when should the Documentary
Stamp tax on sale of real property be paid:

29. 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:

33. 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____.

34. 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?

35. In local taxation, issuance of warrant of levy by provincial, municipality, or city treasurer shall
be done within:

38. 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?

39. The creditable withholding tax on the sale of an ordinary asset should be filed and paid to the
BIR:

40. In case of real property paid under deferred payment basis, the documentary stamp tax shall
accrue upon: