Mr. T sold his vacant lot with an area of 100 sq. m. in Green Valley Subdivision, Casili, Consolacion, Cebu. The selling price in the Deed of Sale is P1,000,000. The fair value in the provincial assessors office as shown in the Tax Declaration is P200,000. The latest BIR zonal value is in BIR website. 

1. Compute for the capital gains tax. 

2. Compute the documentary stamp tax. 

3. What is the BIR form to be used and the deadline for payment?

Answer rating: 100% (QA)

To compute the capital gains tax and documentary stamp tax we need to consider the following informa... View the full answer