S P E C IA L IZ E D C P A L E R E V IE W

Taxation
QUIZZER 3: CAPITAL LOSS CARRY-OVER
Reviewer: Noelen Monarca Carreon, CPA

FOR 1-11: TAXPAYER IS AN INDIVIDUAL.

1. Capital Gain from the sale of Capital Asset not subject to CGT is P100,000. The Capital asset has a Holding
Period of 8 months. How much is the amount of Capital Gain that should be recognized in the taxable income?
2. Capital Gain from the sale of Capital Asset not subject to CGT is P100,000. The Capital asset has a Holding
Period of 14 months. How much is the amount of Capital Gain that should be recognized for the said transaction.
3. Capital Gain from the sale of Capital Asset not subject to CGT is P100,000. The Capital asset has a Holding
Period of 1 year. How much is the amount of Capital Gain that should be recognized for the said transaction.
4. Capital Gain from the sale of Capital Asset not subject to CGT is P100,000. The Capital asset has a Holding
Period of 2 years. How much is the amount of Capital Gain that should be recognized for the said transaction.
5. Capital Loss from a sale of Capital Asset not subject to CGT is (P100,000). The Capital asset has a Holding
Period of 6 months. How much is the amount of Capital Loss that should be recognized for the said transaction.
6. Capital Loss from a sale of Capital Asset not subject to CGT is (P100,000). The Capital asset has a Holding
Period of 16 months. How much is the amount of Capital Loss that should be recognized for the said transaction.
7. Capital Loss from a sale of Capital Asset not subject to CGT is (P100,000). The Capital asset has a Holding
Period of 16 months. Total Capital Gains for the taxable year is P50,000 and Ordinary Gain is P100,000. How much
is the amount of Capital Loss that should be recognized for the said transaction.
8. Capital Loss from a sale of Capital Asset not subject to CGT is (P100,000). The Capital asset has a Holding
Period of 6 months. Total Capital Gains for the taxable year is P50,000 and Ordinary Gain is P100,000. How much is
the amount of Capital Loss that should be recognized for the said transaction.
9. Capital Loss from a sale of Capital Asset not subject to CGT is (P200,000). The Capital asset has a Holding
Period of 16 months. Total Capital Gains for the taxable year is P50,000 and Ordinary Gain is P100,000.Net income
from the said year is P80,000. How much is the correct amount of Net Capital Loss that can be carried over for the
succeeding year?
10. In 2018, Capital Loss from a sale of Capital Asset not subject to CGT is (P200,000). The Capital asset has a
Holding Period of 6 months. Total Capital Gains for the taxable year is P50,000 and Ordinary Gain is P100,000. Net
income from the said year is P80,000. How much is the correct amount of Net Capital Loss that can be carried over
for the succeeding year?
11. In item 10, is the unrecognized/uncarried over net capital loss from the year 2018 can be carried over to year
2020?

FOR 12-21: TAXPAYER IS A CORPORATION.

12. Capital Gain from the sale of Capital Asset not subject to CGT is P100,000. The Capital asset has a Holding
Period of 8 months. How much is the amount of Capital Gain that should be recognized for the said transaction.
13. Capital Gain from the sale of Capital Asset not subject to CGT is P100,000. The Capital asset has a Holding
Period of 14 months. How much is the amount of Capital Gain that should be recognized for the said transaction.
14. Capital Gain from the sale of Capital Asset not subject to CGT is P100,000. The Capital asset has a Holding
Period of 1 year. How much is the amount of Capital Gain that should be recognized for the said transaction.
15. Capital Gain from the sale of Capital Asset not subject to CGT is P100,000. The Capital asset has a Holding
Period of 2 years. How much is the amount of Capital Gain that should be recognized for the said transaction.
16. Capital Loss from a sale of Capital Asset not subject to CGT is (P100,000). The Capital asset has a Holding
Period of 6 months. How much is the amount of Capital Loss that should be recognized for the said transaction.
17. Capital Loss from a sale of Capital Asset not subject to CGT is (P100,000). The Capital asset has a Holding
Period of 16 months. How much is the amount of Capital Loss that should be recognized for the said transaction.
18. Capital Loss from a sale of Capital Asset not subject to CGT is (P100,000). The Capital asset has a Holding
Period of 16 months. Total Capital Gains for the taxable year is P50,000 and Ordinary Gain is P100,000. How much
is the amount of Capital Loss that should be recognized for the said transaction.
19. Capital Loss from a sale of Capital Asset not subject to CGT is (P100,000). The Capital asset has a Holding
Period of 6 months. Total Capital Gains for the taxable year is P50,000 and Ordinary Gain is P100,000. How much is
the amount of Capital Loss that should be recognized for the said transaction.

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20. Capital Loss from a sale of Capital Asset not subject to CGT is (P200,000). The Capital asset has a Holding
Period of 16 months. Total Capital Gains for the taxable year is P50,000 and Ordinary Gain is P100,000.Net income
from the said year is P80,000. How much is the correct amount of Net Capital Loss that can be carried over for the
succeeding year?
21. In 2018, Capital Loss from a sale of Capital Asset not subject to CGT is (P200,000). The Capital asset has a
Holding Period of 6 months. Total Capital Gains for the taxable year is P50,000 and Ordinary Gain is P100,000. Net
income from the said year is P80,000. How much is the correct amount of Net Capital Loss that can be carried over
for the succeeding year?

22. An individual taxpayer, single, has the following data for 2018 taxable year: How much is the net taxable
income?
Ordinary income P240,000
Ordinary loss 40,000
Capital gain on capital asset held for six (6) months 10,000
Capital gain capital asset held for three (3) years 40,000
Capital loss on capital asset held for 15 months 10,000
Note: All capital gains and capital losses are from sale/exchanges of Capital Assets not subject to Capital Gains Tax.

23. ABC Corporation has the following data for 2018 taxable year: How much is the taxable income?
Ordinary income P240,000
Ordinary loss 40,000
Capital gain on capital asset held for six (6) months 10,000
Capital gain capital asset held for three (3) years 40,000
Capital loss on capital asset held for 15 months 10,000
Note: All capital gains and capital losses are from sale/exchanges of Capital Assets not subject to Capital Gains Tax.

24. An individual taxpayer, single has the following data for 2018: How much is the taxable income?
Ordinary income P240,000
Ordinary loss 40,000
Capital gain on capital asset held for six (6) months 10,000
Capital gain capital asset held for three (3) years 40,000
Capital loss on capital asset held for 15 months 80,000

25. Given the following data during the calendar year (2018), determine the taxable income assuming the
taxpayer is a citizen of the Philippines without a dependent child.
Business income P800,000
Business expenses 500,000
Compensation income 500,000
Capital gain on sale of bonds held for twenty (20) months 60,000
Capital gain on direct sale to a buyer of shares of domestic corporation held 150,000
for six (6) months
Capital loss on sale of a car held for ten (10) months 50,000
Capital loss on sale of land in the Philippines held for two (2) years 100,000
Capital loss in 2011 (net taxable income in 2011 was P100,000) 200,000

26. Given the following data during the calendar year (2018), determine the taxable income assuming the
taxpayer is a citizen of the Philippines without a dependent child.
Business income P800,000
Business expenses 500,000
Compensation income 500,000
Capital gain on sale of bonds held for twenty (20) months 60,000
Capital gain on direct sale to a buyer of shares of domestic corporation held 150,000
for six (6) months
Capital loss on sale of a car held for ten (10) months 10,000
Capital loss on sale of land in the Philippines held for two (2) years 100,000
Capital loss in 2011 (net taxable income in 2011 was P100,000) 200,000

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27. Given the following data during the calendar year (2018), determine the taxable income assuming the
taxpayer is a “domestic corporation”.
Business income 800,000
Business expenses 500,000
Capital gain on sale of bonds held for two (2) months 70,000
Capital gain on direct sale to buyer of shares of domestic corporation held 150,000
for six (6) months
Capital loss on sale of a car held for two (2) years 10,000
Capital loss on sale of land in the Philippines held for two (2) years 100,000
Capital loss in 2017 (net taxable income in 2017 was P50,000) 200,000

(28-35)George sold 2,000 shares of a domestic corporation in a local stock exchange at 110 per share
(Acquisition cost –P100 per share).
28. How much is the capital gains tax on the sale of shares?
29. How much is the income subject to basic or ordinary tax?
30. What is the applicable tax on the transaction?
31. How much is the stock transaction tax for the sale of shares?
32. Who is responsible in stock transaction tax?
33. Assume that George is a dealer in securities, how much is the CGT?
34. Assume that George is a dealer in securities, how much is the Stock Transaction Tax?
35. Assume that George is a dealer in securities, what are the applicable taxes for the said sale of shares?