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(5) Tax Review: Capital Gains Tax

Total questions: 40

Worksheet time: 22mins

Name
Class
Date
1.

Sale of real property by a real estate dealer is subject to what kind of tax?

a)

BASIC INCOME TAX

b)

CAPITAL GAINS TAX

c)

8% PREFERNTIAL TAX

d)

ESTATE TAX

2.

Gain on sale of shares/securities by a dealer in securities is subject to what kind of tax?

a)

BASIC INCOME TAX

b)

CAPITAL GAINS TAX

c)

8% PREFERNTIAL TAX

d)

ESTATE TAX

3.

Gain on sale of shares of domestic corporation directly sold to a buyer is subject to what kind of tax?

a)

BASIC INCOME TAX

b)

CAPITAL GAINS TAX

c)

8% PREFERNTIAL TAX

d)

ESTATE TAX

4.

Gain on sale of an unlisted shares from a non-listed Domestic Corporation is subject to what kind of tax?

a)

BASIC INCOME TAX

b)

CAPITAL GAINS TAX

c)

8% PREFERNTIAL TAX

d)

ESTATE TAX

5.

Gain on sale of shares of a closely-held corporation is subject to what kind of tax?

a)

BASIC INCOME TAX

b)

CAPITAL GAINS TAX

c)

8% PREFERNTIAL TAX

d)

ESTATE TAX

6.

Sale of real property classified as capital asset is subject to what kind of tax?

a)

BASIC INCOME TAX

b)

CAPITAL GAINS TAX

c)

8% PREFERNTIAL TAX

d)

ESTATE TAX

7.

Sale of real property classified as ordinary asset is subject to what kind of tax?

a)

BASIC INCOME TAX

b)

CAPITAL GAINS TAX

c)

8% PREFERNTIAL TAX

d)

ESTATE TAX

8.

Sale of real property classified as ordinary asset who is not under a real estate business but is used in the operation of a business is subject to what kind of tax?

a)

BASIC INCOME TAX

b)

CAPITAL GAINS TAX

c)

8% PREFERNTIAL TAX

d)

ESTATE TAX

9.

The land which is classified as a capital asset of a resident citizen taxpayer was acquired at P500,000 seven (7) years ago. The location of the land is in the Philippines. Taxpayer sold it at a price which was higher than its FMV of P1,000,000. Selling price of the land was P1,500,000.

How much is the tax base for CGT on the said sale?

a)

P1,000,000

b)

P1,500,000

c)

P2,000,000

d)

P500,000

10.

The land which is classified as a capital asset of a resident citizen taxpayer was acquired at P500,000 seven (7) years ago. The location of the land is in the Philippines. Taxpayer sold it at a price which was higher than its FMV of P1,000,000. Selling price of the land was P1,500,000.

What is the applicable CGT tax rate for the said sale?

a)

6%

b)

15%

c)

10%

d)

20%

11.

The land which is classified as a capital asset of a resident citizen taxpayer was acquired at P500,000 seven (7) years ago. The location of the land is in the Philippines. Taxpayer sold it at a price which was higher than its FMV of P1,000,000. Selling price of the land was P1,500,000.

How much is the Capital Gains Tax (CGT) on the said sale?

a)

90,000

b)

60,000

c)

15,000

d)

20,000

12.

What is the Taxable Amount for the computation of CGT in item A?

a)

P1,000,000

b)

P1,800,000

c)

P2,000,000

d)

P800,000

13.

How much is the CGT?

a)

60,000

b)

108,000

c)

120,000

d)

48,000

14.

What is the Taxable Amount for the computation of CGT in item B?

a)

P1,000,000

b)

P1,800,000

c)

P2,000,000

d)

P800,000

15.

How much is the CGT?

a)

P60,000

b)

P108,000

c)

P120,000

d)

P48,000

16.

What is the Taxable Amount for the computation of CGT in item C?

a)

P3,000,000

b)

P2,000,000

c)

P1,000,000

d)

-0-

17.

How much is the CGT?

a)

P180,000

b)

P60,000

c)

P120,000

d)

P48,000

18.

What is the Taxable Amount for the computation of CGT in item D?

a)

P1,200,000

b)

P800,000

c)

1,000,000

d)

(P200,000)

19.

How much is the CGT?

a)

P72,000

b)

P48,000

c)

P60,000

d)

- 0 -

20.

How much is the CGT?

a)

P72,000

b)

P48,000

c)

P60,000

d)

- 0 -

21.

Mr. Gomez, a resident citizen, sold his Real Property classified as Capital Asset to the Government. He opted to be taxed at 6% CGT. FMV of the property is P5,000,000 and the Gross Selling Price is P3,000,000. What kind of tax will this transaction be subjected to?

a)

CAPITAL GAINS TAX

b)

BASIC INCOME TAX

c)

PASSIVE INCOME TAX

d)

PERCENTAGE TAX

22.

Mr. Gomez, a resident citizen, sold his Real Property classified as Capital Asset to the Government. He opted to be taxed at 6% CGT. FMV of the property is P5,000,000 and the Gross Selling Price is P3,000,000. Can Mr. Gomez opt to be taxed for the said sale transaction under Basic Income Tax Scheme?

a)

Yes

b)

No

c)

Maybe

d)

Sometimes

23.

Mr. Joey Marquez sold his real property classified as his principal residence for an amount of P10,000,000. He acquired the said property 10 years ago at an amount of P7,000,000. After 10 years of residing happily in the said property, he decided to sell it in order to acquire a much better place to home his family. Fair Market Value of the property at the time of sale is P11,000,000. After 2 years, he decided to buy a new principal residence from the proceeds he received from selling their prior residential house. How much is the CGT?

a)

- 0 -

b)

600,000

c)

420,000

d)

660,000

24.

Mr. Joey Marquez sold his real property classified as his principal residence for an amount of P10,000,000. He acquired the said property 10 years ago at an amount of P7,000,000. After 10 years of residing happily in the said property, he decided to sell it in order to acquire a much better place to home his family. Fair Market Value of the property at the time of sale is P11,000,000. After 1 year, he decided to buy a new principal residence from the proceeds he received from selling their prior residential house. How much is the CGT?

a)

- 0 -

b)

600,000

c)

420,000

d)

660,000

25.

Jenny sold 2,000 shares of a domestic corporation in the local stock exchange at P150 per share. The shares were purchased 3 years ago for P100 per share. How much is the Taxable Amount that should be subject to Capital Gains Tax? Selling date: March 6, 2020

a)

100,000

b)

300,000

c)

200,000

d)

- 0 -

26.

Jenny sold 2,000 shares of a domestic corporation in the local stock exchange at P150 per share. The shares were purchased 3 years ago for P100 per share. How much is the Capital Gains Tax? Selling date: March 6, 2020

a)

15,000

b)

45,000

c)

30,000

d)

- 0 -

27.

Jenny sold 2,000 shares of a domestic corporation directly to a buyer (Fred) at P150 per share. The shares were acquired six (6) months ago at P100 per share. How much is the Taxable Amount that should be subject to Capital Gains Tax?

a)

100,000

b)

300,000

c)

200,000

d)

- 0 -

28.

Jenny sold 2,000 shares of a domestic corporation directly to a buyer (Fred) at P150 per share. The shares were acquired six (6) months ago at P100 per share. How much is the applicable CGT Rate for the said transaction? Selling date: March 6, 2020

a)

6%

b)

15%

c)

8%

d)

10%

29.

Jenny sold 2,000 shares of a domestic corporation directly to a buyer (Fred) at P180 per share. The shares were acquired six (6) months ago at P120 per share. How much is the Capital Gains Tax? Selling date: March 6, 2020

a)

P27,000

b)

P18,000

c)

P9,000

d)

- 0 -

30.

13. Jobert sold 2,000 shares of a domestic corporation directly to a buyer (Earl) at P100 per share. The shares were acquired two (2) years ago at P120 per share. How much is the Gain/(Loss) that is subject to CGT on the said transaction?

a)

(P40,000)

b)

P40,000

c)

(P20,000)

d)

- 0 -

31.

Jobert sold 2,000 shares of a domestic corporation directly to a buyer (Earl) at P100 per share. The shares were acquired two (2) years ago at P120 per share. How much is the Capital Gains Tax (CGT)?

a)

(P6,000)

b)

P6,000

c)

P30,000

d)

- 0 -

32.

Jenny sold 2,000 shares of a domestic corporation in the local stock exchange at P150 per share. The shares were purchased 3 years ago for P100 per share. The said transaction is subject to what kind of tax?

a)

CGT

b)

BIT

c)

OPT

d)

VAT

33.

Stock Transaction Tax has a fixed rate of ________ of the Gross Selling Price.

a)

.60% or 6/10 of 1%

b)

.50% or 5/10 of 1%

c)

40% or 4/10 of 1%

d)

15%

34.

It is a tax imposed on the gains presumed to have been realized by the seller from the sale, exchange, or other disposition of capital assets located in the Philippines, including pacto de retro sales and other forms of conditional sale.

a)

BASIC INCOME TAX

b)

CAPITAL GAINS TAX

c)

8% PREFERNTIAL TAX

d)

ESTATE TAX

35.

BIR Form for Onerous Transfer of Real Property Classified as Capital Assets -Taxable and Exempt)

a)

BIR FORM 1705

b)

BIR FORM 1706

c)

BIR FORM 1707

d)

BIR FORM 1701

36.

BIR Form for Onerous Transfer of Shares of Stocks Not Traded Through the Local Stock Exchange

a)

BIR FORM 1705

b)

BIR FORM 1706

c)

BIR FORM 1707

d)

BIR FORM 1701

37.

When to file and pay BIR Form 1706?

a)

within thirty (30) days following the sale, exchange or disposition of real property

b)

Within ten (10) days following the sale, exchange or disposition of real property

c)

Within fifteen (15) days following the sale, exchange or disposition of real property

d)

Within forty-five (45) days following the sale, exchange or disposition of real property

38.

Annual Capital Gains Tax Return For Onerous Transfer of Shares of Stocks Not Traded Through the Local Stock Exchange.

a)

BIR FORM 1705-A

b)

BIR FORM 1706-A

c)

BIR FORM 1707-A

d)

BIR FORM 1701-A

39.

When to file and pay BIR Form 1707?

a)

within thirty (30) days after each sale, barter, exchange or other disposition of shares of stock not traded through the local stock exchange

b)

Within ten (10) days after each sale, barter, exchange or other disposition of shares of stock not traded through the local stock exchange

c)

Within fifteen (15) days after each sale, barter, exchange or other disposition of shares of stock not traded through the local stock exchange

d)

Within forty-five (45) days after each sale, barter, exchange or other disposition of shares of stock not traded through the local stock exchange

40.

Under the CREATE Law, What is the Capital Gains Tax Rate for Domestic and Foreign Corporation on ONEROUS TRANSFER OF SHARES OF STOCKS NOT TRADED THROUGH THE LOCAL STOCK EXCHANGE

a)

Not over ₱100,000.00 - 5%

On any amount in excess of ₱100,000.00 - 10%

b)

6% on gains

c)

Not over ₱100,000.00 - 10%

On any amount in excess of ₱100,000.00 - 5%

d)

15% on gains