Please answer the following questions then email me your answers at thbello@baniquedlaw.com before Session 3 (subject line: Answers to Exercise 1). This exercise will not be graded but will count towards the 20% class participation. The point of this exercise is for you to analyze and apply Code provisions/jurisprudence to the given fact pattern. So try to do this on your own (it won't be graded anyway). Sa madaling sabi, wag kayo mag kopyahan!! Please lang!!
Question 1: in 2006, Mr. A inherited a row of apartments with a fair market value of P1 million. In the same year, the row of apartments generated rentals for Mr. A in the amount of P100,000. Discuss the income tax implication, if any, of A's receipt of the apartments and the rentals.
Question 2: the employer of Mr. B implemented a retrenchment program which resulted in B's separation from service. B received a separation pay of P200,000. At the time of his separation from service, B was 51 years old and had been in the service of his employer for nine years. Is the separation pay taxable income to B? Explain.
Question 3: C Corp. insured the life of D, C Corp.'s president. C Corp. paid the premiums. The policy states that should Mr. D die, the proceeds of the insurance shall be paid to C. Corp. Are the premium payments deductible from C Corp.'s gross income? Are the premium payments taxable income in the hands of D? Would your answers be the same if the policy states that the proceeds shall be paid to D's spouse?
Question 1: in 2006, Mr. A inherited a row of apartments with a fair market value of P1 million. In the same year, the row of apartments generated rentals for Mr. A in the amount of P100,000. Discuss the income tax implication, if any, of A's receipt of the apartments and the rentals.
Question 2: the employer of Mr. B implemented a retrenchment program which resulted in B's separation from service. B received a separation pay of P200,000. At the time of his separation from service, B was 51 years old and had been in the service of his employer for nine years. Is the separation pay taxable income to B? Explain.
Question 3: C Corp. insured the life of D, C Corp.'s president. C Corp. paid the premiums. The policy states that should Mr. D die, the proceeds of the insurance shall be paid to C. Corp. Are the premium payments deductible from C Corp.'s gross income? Are the premium payments taxable income in the hands of D? Would your answers be the same if the policy states that the proceeds shall be paid to D's spouse?
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