Mr. Pinoy, a resident citizen, sold to John on July 1, 2020 a piece of land...

 

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Mr. Pinoy, a resident citizen, sold to John on July 1, 2020 a piece of land held as capital asset in the Philippines at a selling price of P5,000,000. The land had a cost of P2,500,000 and at the time of sale had a far value of P6,000,000 and a mortgage of P2,000,000 which was assumed by the Mr. John. The sale called for a payment of P300,000 on the date of sale and P200,000 on Dec 1, 2020. The balance shall be paid in installment of P500,000 each on Dec 1, 2021 up to Dec. 1, 2024. Mr Pinoy will pay the tax on installment, if qualified. The initial payment was Mr. Pinoy, a resident citizen, sold to John on July 1, 2020 a piece of land held as capital asset in the Philippines at a selling price of P5,000,000. The land had a cost of P2,500,000 and at the time of sale had a far value of P6,000,000 and a mortgage of P2,000,000 which was assumed by the Mr. John. The sale called for a payment of P300,000 on the date of sale and P200,000 on Dec 1, 2020. The balance shall be paid in installment of P500,000 each on Dec 1, 2021 up to Dec. 1, 2024. Mr Pinoy will pay the tax on installment, if qualified. The initial payment was

Answer rating: 100% (QA)

ANSWER The initial payment was P300000 on the date of sale ... View the full answer