Identify a FALSE statement. A government hospital is income tax exempt on its related income. A private hospital is subject to regular income tax on its income, related or unrelated. A non-profit hospital is subject to a preferential tax rate of 1% if its gross income from unrelated activities does not exceed 50% of its total income. All of the above None of the above

Identify a FALSE statement. A government hospital is income tax exempt on its related income. A private hospital is subject to regular income tax on its income, related or unrelated. A non-profit hospital is subject to a preferential tax rate of 1% if its gross income from unrelated activities does not exceed 50% of its total income. All of the above None of the above

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 2RP

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Which of the following is not correct? a. Non-stock, non-profit private organizations are not subject to VAT if their income from sales is used for non-profit purposes. b. A VAT registered taxpayer can pass on the VAT even to non-VAT registered buyers. c. Services subject to specific percentage tax shall not be subject to VAT regardless whether their annual gross sales or gross receipts exceed P3,000,000. d. None of the above.
Compute the tax due if the corporation is a non-profit hospital
Which of the following is NOT a valid use of Form 990-T? Request credit for certain excise taxes paid. Apply for reinstatement after an exempt organization has their status revoked. Claim the Small Employer Health Insurance Premium Tax Credit. Determine tax liability from UBI.
ABC corporation provided the following data for calendar year ending December 31, 2021 ($1 = P50). Use new tax rate under CREATE Law (RA 11534) d. If it opts to claim the tax paid abroad as deduction from gross income, Compute for its income tax. e. If it is private educational institution, Compute for its income tax due after tax credit. f. If it is a non-profit hospital, Compute for its income tax credit.
Which of the following statements relating to qualified transfers for gift tax purposes is not correct? O The relationship between the donor and the donee is irrelevant with a qualified transfer. A payment made directly to an individual to reimburse him for medical expenses is a qualified transfer. O The exclusion for a qualified transfer is in addition to the annual exclusion. O A payment made to a qualified education institution for tuition costs is a qualified transfer.
On net revenue from sources within the exclusively, private educational institutions and nonprofit hospitals may be eligible for special tax rates of 10%. Is it true or false?
Community benefits serve as justification for a non-profit healthcare organization's tax-exempt status. True or False
Which of the following statements relating to qualified transfers for gift tax purposes is not correct? 1. The relationship between the donor and the donee is irrelevant with a qualified transfer. 2. A payment made directly to an individual to reimburse him for medical expenses is a qualified transfer. 3. The exclusion for a qualified transfer is in addition to the annual exclusion. 4. A payment made to a qualified education institution for tuition costs is a qualified transfer. The relationship between the donor and the donee is irrelevant with a qualified transfer. A payment made directly to an individual to reimburse him for medical expenses is a qualified transfer. The exclusion for a qualified transfer is in addition to the annual exclusion. A payment made to a qualified education institution for tuition costs is a qualified transfer.
Registered charities and non-profit organizations are taxed on their profit or income. True False
Which statement below best describes the entities that can accept donations from the public and provide donors with documentation to allow them to claim a tax deduction in respect of their donation? a. A local state school. b. A private hospital. c. Only entities classified as a deductible gift recipient (DGR) as they meet the necessary requirements to be registered by the ATO. d. Any not for profit organisation.
Which one of the following transactions would typically not be recognized in the fiduciary fund? a. General operating expenditure b. Collection of general property tax c. None of the options d. Purchase of ambulance vehicles for government hospitals
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