Rodrigo Marcos, resident citizen, with 4 qualified dependent children, have the following data for taxable year 2021:
• Compensation Income, net of the following deductions: 500,000
SSS Contributions 6,000
PHIC Contributions 1,200
Pag-ibig Contributions 1,200
Union dues 3,000
Personal loans 50,000
Withholding tax 25,000
• Professional Income (net of 10% withholding tax) 450,000
• Professional Expenses 120,000
• Dividend from a domestic corporation 20,000
• Dividend from a foreign corporation 15,000
• Royalty on book written, net of taxes 20,000
• Royalty on book written and published in USA 100,000
• Interest on bank deposit under EFCDS 5,000
• Interest on bank deposit maintained with Bank of America, NY 10,000
(peso equivalent)
• Lotto winnings 500,000
• Lotto winnings, US 200,000
• Business Income:
Gross Sales 1,200,00
Cost of Sales 650,000
Operating Expenses 200,000
Tax paid for 3 quarters 60,000
• He also sold the following properties:
Sale of lot with a warehouse (was used in their trading business) 800,000
Acquired two years ago at a cost of 500,000
Sale of a personal computer bought 6 months ago @P 50,000 20,000
Sale of personal car, acquired 3 years ago @ P50,000 100,000
Land in Canada purchased two years ago at a cost of
P1,200,000 1,800,000
1,500 shares of San Miguel Corporation (cost – P1,100, PV-1,000, SP-1,500)
He incurred the following expenses:
Commission of the broker upon acquisition – 10,000
Commission of a friend who helped him sell – 5,000
• He also made the following contributions:
To Brgy. La Torre, P10,000, for their Christmas party
To St. Dominic Cathedral, P50,000
• He borrowed P500,000 from PNB at the start of the year, @12% per annum, where he was able to pay half on June 30 while the other half is still outstanding as of the end of the year
• He received a check amounting to iP50,000 as interest income on his deposit with BDO

Required:
1. Net Taxable Income if filing under:
a. Itemized deduction
b. Optional Standard Deduction
2. Final taxes (show schedule)
3. Capital Gains Tax, if any

Answer rating: 100% (QA)

Question Analysis Expenses deductions 500000 SSS Contri... View the full answer