A taxpayer has the following data: Income from practice of profession, net of tax.......................................................................230,000 Sale of office
Question:
A taxpayer has the following data:
Income from practice of profession, net of tax.......................................................................230,000
Sale of office furniture, holding period 2 years, cost of P9,000............................................... 15,000
Sale of investment in bonds, holding period 6 mos., cost, P8,000............................................ 7,500
Compensation income
Basic salary .................................................................................................350,000
13th month pay.............................................................................................. 25,000
Grocery allowance..........................................................................................10,000
Gross pay......................................................................................................385,000
Less - SSS/Medicare......................................................................................20,000
Union dues........................................................................................................2,000
Tax withheld .....................................................................................................6,600
Salary loan.......................................................................................................15,000 341,400
First prize in environmental essay writing contest.................................................................. 50,000
Royalties on e-books...............................................................................................................35,000
Assume full application of RA 11534 after transitory period.
Requirement:
Tax due on income from self-employment/practice of profession if taxpayer opted for the 8% optional rate.
