tax code in its enumeration of exclusions and allowable deductions...shortcut.docx

7/21/2019 Tax Code in its enumeration of exclusions and allowable deductions...shortcut.docx

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1. 'ordinary income'includes any gain from the sale or exchange of property

which is not a capital asset or property described in Section 39(A)(1). Any

gain from the sale or exchange of property which is treated or considered,

under other proisions of this !itle, as "ordinary income" shall be treated as

gain from the sale or exchange of property which is not a capital asset asdefined in Section 39(A)(1). !he term "ordinary loss" includes any loss from

the sale or exchange of property which is not a capital asset. Any loss from

the sale or exchange of property which is treated or considered, under other

proisions of this !itle, as "ordinary loss" shall be treated as loss from the sale

or exchange of property which is not a capital asset.

2. SEC. 31. Taxable Income Defined. - !he term taxable income means the

pertinent items of gross income specified in this #ode, less the deductionsand$or personal and additional exemptions, if any, authori%ed for such types

of income by this #ode or other special laws.

3. SEC. 32. Gross Income.

(1) #ompensation for serices in whateer form paid, including, but notlimited to fees, salaries, wages, commissions, and similar items&

(') ross income deried from the conduct of trade or business or the

exercise of a profession&

(3) ains deried from dealings in property&

() *nterests&

(+) ents&

(-) oyalties&

() /iidends&

(0) Annuities&


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(9) ri%es and winnings&

(12) ensions& and

(11) artner"s distributie share from the net income of the general

professional partnership.

(! Excl"sions from Gross Income.

(1) ife *nsurance. 4

(') Amount eceied by *nsured as eturn of remium.

(3) ifts, 5e6uests, and /eises.

() #ompensation for *n7uries or Sic8ness.

(+) *ncome xempt under !reaty.

(-) etirement 5enefits, ensions, ratuities, etc.:

(a) etirement benefits receied under epublic Act ;o. -1

(b) Any amount receied by an official or employee or by his heirs


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(a) *ncome /eried by @oreign oernment.

(b) *ncome /eried by the oernment or its olitical Subdiisions.

(c) ri%es and Awards


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(b) *f both the taxpayer and the person to whom the payment has

been made or is to be made are persons specified under Section 3-(5)& or

(c) *f the indebtedness is incurred to finance petroleum exploration.

(C! Taxes. :

(1! In General.: paid or incurred within the taxable year in connection with

the taxpayer"s profession, trade or business,


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business carried on by the taxpayer, indiidual or corporate, when the

taxpayer is directly or indirectly a beneficiary under such policy.

tax code in its enumeration of exclusions and allowable deductions...shortcut.docx

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