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    For Student Copy - Income Taxation

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    roxanformilleza
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    For Student Copy - Income Taxation

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    roxanformilleza
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    For student copy_Income Taxation

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    For student copy_Income Taxation

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    For student copy_Income Taxation

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    4 views3 pages

    For Student Copy - Income Taxation

    Uploaded by

    roxanformilleza
    For student copy_Income Taxation

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    © All Rights Reserved
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    Topic: Gains from dealing in properties (Analytical)

    • Conducting a property appraisal is a procedure used for determining the cost when
    dealing with properties.

    • Depreciation influences gains in property transactions by reducing the profit.

    • One of the factors to be considered when calculating gains is the market value
    fluctuations.

    • Renovating the property, investing in high-demand locations, and holding onto the
    property long-term are the common strategies for maximizing gains in property deals.

    • The financial transaction value of the property is one of the bases for measuring gains
    and losses when dealing with properties.

    • Capital gains in property dealings mean an increase in the value of a property over
    time.

    • ROI means a “Return on Investment”

    • Flipping in real estate means purchasing a property and reselling it quickly for profit.

    • Rental Income, Property Taxes, and Operating expenses are the factors that are
    needed when calculating net operating income (NOI).

    • Higher vacancy rates and operational costs are some of the potential disadvantages of
    investing in commercial properties compared to residential properties.

    • Investment in real estate investment trusts (REITs), Investing in properties across


    different geographical locations, and investing in different types of properties
    (residential, commercial) are the common strategies for property investment
    diversification.

    • Investing in Real Estate Investment Trusts (REITs) is an example of an indirect way to


    gain from dealing in properties.

    • The role of market analysis in property investment is to assess the supply and demand
    dynamics of the real estate market.
    • Historical trends in property prices are one of the crucial factors when evaluating the
    potential profitability of a property investment.

    • Leverage allows investors to purchase properties with borrowed funds in a property


    investment.

    Topic: Exclusion from Gross Income

    • Exclusion from gross income refers to the omission of certain types of income from tax
    calculations.

    • The exclusion of certain income from gross income decreases the taxable income of an
    individual taxpayer.

    • Salary from a full-time job, rental income from a property, and dividend payments from
    investments are some examples of gross taxable income.

    • The purpose of excluding certain income from gross income calculation is to ensure
    accurate and fair taxation of the taxpayers.

    • Income that is excluded from the tax will be typically indicated in tax return forms or
    schedules of the BIR.

    • One of the advantages of excluding certain income from gross income is lowering the
    overall tax liability of the taxpayers.

    • Incurring penalties or fines are the potential risk that taxpayers may face if they
    incorrectly exclude income from gross income calculations.

    • The Internal Revenue Service (IRS) is primarily responsible for regulating exclusions
    from gross income.

    • Form 1040 – used to report income that is excluded from gross income.

    • Earning interest on a savings account, receiving a gift from a family member, and
    selling personal belongings at a garage sale are the following scenarios that would be
    considered as excluded from gross income.
    Topic: Fringe benefit

    • The primary purpose of providing fringe benefits as part of income taxation rules in the
    Philippines is to attract and retain talented employees.

    • The impact of fringe benefits on an individual taxpayer is either an increase or decrease


    in tax liabilities.

    • The Bureau of Internal Revenue (BIR) is the one that is responsible for determining the
    value of fringe benefits for tax purposes.

    • Fringe benefits will attract and retain top talents in a company.

    • Fringe benefits can be either taxable or tax exempt depending on their kind.

    • Employee consent can affect whether certain fringe benefits are taxable.

    • Health insurance premiums are an example of tax exempted fringe benefits.

    • Employee discounts on company products are considered a common fringe benefit that
    could be included in an individual’s taxable income.

    • Training opportunities are some of the benefits provided by an employer in addition to


    monetary compensation.

    • Fringe benefits are taxed differently based on the type of benefits.

    • Employers only need to report fringe benefits exceeding a certain threshold. (90,000
    and above)

    • Taxable as regular income best describes the tax treatment of fringe benefits for
    employees.

    • De minimis benefits are benefits that are not required to be reported as income.

    • Stock options are taxable fringe benefits for employees.

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