Real Estate Taxation
In this quiz we’ll be looking at taxation in real estate, often referred to as property tax - which is an ad valorem tax on the value of a property. What do you know about the topic?
- 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
Correct Answer
C. Not exceeding 1.0% 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%
Correct Answer
A. 1.5% -
- 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
Correct Answer
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
Correct Answer
B. P90,000.00 -
- 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
Correct Answer
E. None of the aboveExplanation
No Documentary Stamp on Donor and Estate Tax.Rate this question:
-
- 6.
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
- D.
Two percent per month
- E.
Three percent per month
Correct Answer
D. Two 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
Correct Answer
A. Not exceeding 1% of assessed value -
- 8.
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?
- A.
30 days
- B.
120 days
- C.
90 days
- D.
45 days
- E.
60 days
Correct Answer
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
Correct Answer
C. Documentary Stamps -
- 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
Correct Answer
D. 25% 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
Correct Answer
A. Within 5 days after the close month -
- 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
- E.
Mayor's permit
Correct Answer
B. Special Education fund tax -
- 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%
Correct Answer
A. 6% -
- 14.
The capital gains tax should be paid within how many days from the notarization of the deed ofsale?
- A.
15 days
- B.
30 days
- C.
7 days
- D.
45 days
- E.
10 days
Correct Answer
B. 30 days -
- 15.
Mr. Garcia sold his principal residence for the amount of P5,000,000 in order to buy anotherresidence 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
Correct Answer
A. P60,000 -
- 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
Correct Answer
B. City Treasurer -
- 17.
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
Correct Answer
B. 3 years -
- 18.
The provincial, city, or municipal assessor shall undertake a general revision of real propertyassessment every
- A.
4 years
- B.
5 years
- C.
2 years
- D.
1 year
- E.
3 years
Correct Answer
E. 3 years -
- 19.
The creditable withholding tax on the sale of an ordinary asset should be filed and paid to theBIR:
- 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
Correct Answer
E. Within 10 days from the close of the month of sale -
- 20.
Which of the following properties, if sold. will not be subject to value added tax?
- A.
3-door commercial apartment for rent
- B.
Residential house and lot
- C.
Condominium office unit
- D.
Office building of a corporation
- E.
Residential apartments obeing leased
Correct Answer
B. Residential house and lot -
- 21.
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____.
- A.
36 months
- B.
5 years
- C.
24 months
- D.
2 years
- E.
10 years
Correct Answer
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
Correct Answer
B. Certificate Authorizing Registration -
- 23.
The zonal value of a property can be obtained from?
- A.
Bureau of Internal Revenue
- B.
Registry of Deeds
- C.
Office of the Sheriff
- D.
Assessors Office
- E.
Land Registration Authority
Correct Answer
A. Bureau of Internal Revenue -
- 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
Correct Answer
E. P3,000,000 -
- 25.
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:
- A.
Creditable Withholding Tax
- B.
Transfer and Registration fees
- C.
Expanded Value Added Tax
- D.
Capital gains tax
- E.
Documentary stamp
Correct Answer
C. Expanded Value Added Tax -
- 26.
In case of real property paid under deferred payment basis, the documentary stamp tax shallaccrue 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
Correct Answer
E. Execution of Contract to Sell -
- 27.
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?
- A.
50%
- B.
75%
- C.
100%
- D.
60%
Correct Answer
C. 100% -
- 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 inacquiring or constructing their new principal residence:
- A.
24 months
- B.
36 months
- C.
18 months
- D.
12 months
Correct Answer
C. 18 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
Correct Answer
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 -
- 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
Correct Answer
B. Within 30 daysExplanation
see p.201 of reviewer manualRate this question:
-
- 31.
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:
- A.
5 years
- B.
8 years
- C.
10 years
- D.
12 years
Correct Answer
C. 10 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
Correct Answer
B. Capital Gains Tax P1,554,000.00 Documentary Stamps Tax P 388,500.00 Commission P1,225,000.00Explanation
Capital Gains Tax based on whichever is higher
Documentary Stamp based on whichever is higherRate this question:
-
- 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
Correct Answer
B. P1,822,187.50 -
- 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
Correct Answer
D. P3,000,000 -
- 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
Correct Answer
D. P180,000 -
- 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
Correct Answer
D. P45,000 -
- 37.
If the value added tax is P720.000, what would be the selling price before VAT?
- A.
P3,000,000
- B.
P4,000,000
- C.
P5,000,000
- D.
P6,000,000
- E.
P7,000,000
Correct Answer
D. P6,000,000 -
- 38.
If the value added tax is P720,000, what would be the selling price inclusive of VAT?
- A.
P5,720,000
- B.
P6,720,000
- C.
P7,720,000
- D.
P8,720,000
- E.
P9,250,000
Correct Answer
B. P6,720,000 -
- 39.
The document which must not be presented to the Assessor to effect 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
Correct Answer
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 netproceeds 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
Correct Answer
B. P4,375,000.00 -
Quiz Review Timeline +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
-
Current Version
-
Mar 16, 2022Quiz Edited by
ProProfs Editorial Team -
Mar 19, 2011Quiz Created by
Joco
- Accounting Quizzes
- Advertising Quizzes
- Agriculture Quizzes
- Automotive Quizzes
- Brand Quizzes
- Business Accounting Quizzes
- Business Analyst Quizzes
- Business Development Quizzes
- Business Environment Quizzes
- Business Etiquette Quizzes
- Business Finance Quizzes
- Business Math Quizzes
- Business Organization Quizzes
- Business Plan Quizzes
- Business Process Quizzes
- Business Study Quizzes
- Business Technology Quizzes
- CEO Quizzes
- Collaboration Quizzes
- Company Quizzes
- Construction Quizzes
- Consumer Quizzes
- CSR Quizzes
- Customer Quizzes
- Customer Service Quizzes
- Development Quizzes
- Ecommerce Quizzes
- Employment Quizzes
- Entrepreneurship Quizzes
- Finance Quizzes
- Hospitality Quizzes
- Human Resources Quizzes
- Industry Quizzes
- International Business Quizzes
- Introduction To Business Quizzes
- Investment Quizzes
- Logistics Quizzes
- Management Quizzes
- Manufacturing Quizzes
- Marketing Quizzes
- Material Quizzes
- Media Quizzes
- Office Quizzes
- Organization Quizzes
- Principles Of Business Quizzes
- Printing Quizzes
- Product Quizzes
- Publishing Quizzes
- Retail Quizzes
- Sales Quizzes
- SAP Business One Quizzes
- Small Business Quizzes
- Source Quizzes
- Supply Quizzes
- Survey Quizzes
- Telecommunication Quizzes
- Trade Quizzes
- Training Quizzes
- Transportation Quizzes
- Warehouse Quizzes
- Welding Quizzes
Back to top