POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Donor’s Tax Reviewer
1. On January 15, 2018, Jose sold a real property used in business for P600,000 to his brother-in-law. The
assessed value and zonal value of the land were P750,000 and P1,000,000, respectively. The sale is
subject to:
a. Subject to donor’s tax of P9,000 and capital gains tax of P60,000
b. Subject to donor’s tax of P9,000 or capital gains tax of P60,000 at the option of Jose
c. Subject to capital gains tax only of P60,000
d. Subject to donor’s tax only of P9,000
*If sold a vacant lot held as capital asset the sale is subject to capital gains tax only of P60,000.
2. On January 15, 2018, Jose donated a vacant lot held as capital asset to his brother-in-law. The assessed
value and zonal value of the land were P750,000 and P1,000,000, respectively. The land had an unpaid
mortgage of P200,000, which was not assumed by the donee and an unpaid realty tax of P10,000 which
was assumed by the donee. The donation is subject to:
a. Subject to donor’s tax of P44,400 or capital gains tax of P60,000 at the option of Jose
b. Subject to donor’s tax only of P44,400
c. Subject to capital gains tax only of P60,000
d. Subject to donor’s tax of P44,400 and capital gains tax of P60,000
3. Julio made the following gifts to his relatives:
Philippines USA UK Italy
Gross gifts 750,000 500,000 250,000 500,000
Deductions 250,000 200,000 150,000 150,000
Tax paid - 25,000 12,000 10,000
The donor’s tax payable after tax credits is:
a. P26,000
b. P30,800
c. P33,520
d. P60,000
Use the following data for the next four (4) questions:
Mr. and Mrs. Privileged, made the following donations during 2021:
▪ January 25
To Oliver, their legitimate son, on account of marriage last January 20, 2021, car worth P500,000,
with P200,000 unpaid mortgage, ½ was assumed by the donee.
▪ May 31
To John, brother of Mr. Privileged, his capital property worth P200,000 on account of marriage 6
months ago with a condition that the donee will pay the donor’s tax thereon.
▪ July 15
To Felicidad, daughter of Mrs. Privileged by former marriage, on account of her marriage 12
months ago, Mrs. Privileged’s paraphernal property worth P100,000
▪ August 20
Conjugal car of the couple worth P400,000 with P200,000 unpaid mortgage, ½ assumed by
Felicidad and P500,000 worth of land to their four sons on account of their graduation, 20% of
which was owned by their closest friend, Rafael, who agreed to donate his share through a public
document.
4. The gift tax payable by Mr. Privileged as of May 31 should be?
5. The gift tax payable of Mrs. Privileged as of July 15 should be:
6. The gift taxes payable of Mr. and Mrs. Privileged on August 20 should be:
7. The gift tax payable of Rafael on August 20 should be:
8. Bill, single, donated the following properties on October 2018:
Property Donee Value
Cash Juan, brother, on account of marriage 1,000,000
Jewelries Kat, girlfriend residing in Japan 250,000
House & Lot Parents, silver wedding anniversary gift 2,500,000
Land Brgy. Mapayapa, for use of barangay hall 75,000
Car Fe, sister, donation is irrevocable 1,200,000
Cash International Rice Research Institute 50,000
Cash Guillermo, father of the father of his mother 300,000
Motorcycle Kay, niece, donation is embodied in the Will 70,000
The donor’s tax payable should be?