Bar Exam Reviewer on Tax – Real Estate Taxation

Anktryd, Inc., bought a parcel of land in 2009 for P7 million as part of its
inventory of real properties. In 2010, it sold the land for P12 million which was its zonal valuation. In the same year, it incurred a loss of P6 million for selling
another parcel of land in its inventory. These were the only transactions it had in its real estate business. Which of the following is the applicable tax treatment?

A. Anktryd shall be subject to a tax of 6% of P12 million.
B. Anktryd could deduct its P6 million loss from its P5 million gain.
C. Anktryd’s gain of P5 million shall be subject to the holding period.
D. Anktryd’s P6 million loss could not be deducted from its P5 million gain.

Answer is Letter B

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