Tax Deductions Quiz

What is the purpose of allowable deductions for taxpayers?

• To increase gross income

• To reduce taxable income

• To eliminate all taxes

• To enhance revenue

Which of the following is NOT a special deduction?

• Health insurance premiums

• Research and development costs

• Depreciation on assets

• Charitable contributions

What percentage of gross sales receipts can individual taxpayers deduct using the optional standard deduction?

• 30%

• 40%

• 50%

• 60%

In Mr. Juan Dela Cruz's case, what is his total gross compensation income?

• P1,225,000

• P1,369,000

• P3,125,000

• P3,219,000

What is the allowable deduction for Mr. Dela Cruz's optional standard deduction?

• P1,250,000

• P1,844,000

• P2,000,000

• P3,219,000

Which of the following is considered an ordinary business expense?

• Travel expenses for personal vacation

• Salaries and wages paid to employees

• Personal medical expenses

• Interest on personal loans

What is the deductible amount for fringe benefits provided to an employee?

• Taxable income

• Not deductible

• Allowed as a deduction

• Only deductible if documented

Which of the following taxes is NOT deductible?

• Philippine income tax

• Estate tax

• Tax on sale of shares through the stock exchange

• Import duties

What must be true for losses to be deductible?

• They must occur outside of business hours

• They must be compensated by insurance

• They must be reported to the BIR within a certain period

• They must be less than P100,000

Which type of losses are NOT deductible?

• Business losses

• Casualty losses

• Losses from theft

• Losses not expressly stated as deductible