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Real Estate Taxation Questions
Real Estate Taxation Questions
1. How much is the amount of basic real property tax that may be imposed by a province?
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. 1.25%
B. 1%
C. 1.5%
D. 1.75%
E. 2%
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
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:
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:
7. The basic real property tax for land located in a province shall be at the rate:
C. 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
9. A tax on documents, instruments, loan agreements and papers evidencing the acceptance,assignment, sale or transfer of
an obligation, is called:
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:
11. After a Deed of Absolute Sale is made, signed and notarized, when should the DocumentaryStamp tax on sale of real
property be paid:
B. Within 30 days
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
D. Business tax
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 ofsale?
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. In local taxation, issuance of warrant of levy by provincial, municipality, or city treasurer shall be done within:
A. 1 year
B. 3 years
C. 4 years
D. 2 years
E. 5 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
19. The creditable withholding tax on the sale of an ordinary asset should be filed and paid to theBIR:
20. Which of the following properties, if sold. will not be subject to value added tax?
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
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.
C. Certificate of Payment
E. Official Receipt
B. Registry of Deeds
D. Assessor’s Office
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
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:
E. Documentary stamp
26. In case of real property paid under deferred payment basis, the documentary stamp tax shallaccrue upon:
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%
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
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
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.
Commission P1,225,000.00
Commission P1,225,000.00
Commission P1,295,000.00
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 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?
A. P3,644,375.00
B. P1,822,187.50
C. P1,244,375.00
D. P2,400,000.00
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 meter 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 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
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
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
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