Optional standard deduction

1. Which of the following is correct regarding Net Operating Loss Carry-Over?

NOLCO can be claimed only up to the extent of available taxable income in any given
subsequent period
2. Which is not correct concerning OSD?
It is computed as 40% of gross income or gross receipts less direct cost of services for
any taxpayer
3. Which of the following cannot claim optional standard deduction?

A taxpayer earning a combination of compensation and passive income subject to final

tax
4. Select the correct statement concerning Optional Standard Deduction?

Can be claimed simultaneously with a deduction for health and hospitalization insurance
by an individual taxpayer in business
5. Which of the following taxpayers may avail the 40% optional standard deduction based
on the gross income?
Neither a nor b
6. Which is incorrect?
A partner in a GPP can still claim either itemized deductions or optional deductions from
his share in the net income of the GPP
7. Which is incorrect?
A partner in a GPP can still claim either itemized deductions or optional deductions from
his share in the net income of the GPP
8. Pinoy Exporters, Inc., a pioneer BOI-registered entity, incurred substantial losses from its
initial year of operation totaling P25,000,000. Under E.O. 226, pioneer firms as defined
therein enjoys tax holiday for its first 6 years of operation. If Pinoy Exporter, Inc. has a
taxable income before NOLCO of P18,000,000 in its second year of operation.
How much NOLCO can be claimed?
P18,000,000
9. Which of the following is correct regarding Net Operating Loss Carry-Over?
NOLCO can be claimed only up to the extent of available taxable income in any given
subsequent period
10. Select the correct statement concerning Optional Standard Deduction?
Can be claimed simultaneously with a deduction for health and hospitalization insurance
by an individual taxpayer in business
11. Pinoy Exporters, Inc., a pioneer BOI-registered entity, incurred substantial losses from its
initial year of operation totaling P25,000,000. Under E.O. 226, pioneer firms as defined
therein enjoys tax holiday for its first 6 years of operation. If Pinoy Exporter, Inc. has a
taxable income before NOLCO of P18,000,000 in its second year of operation.
How much NOLCO can be claimed?

P18,000,000
12.