5.
Basic Appraisal for Real Estate Brokers
Basic Appraisal for Real Estate Brokers - Questioners
I. Amo:rtu.ation: The monthly amortization for loan of Pl00,000.00. Payables
in 30 years at an interest rate of 7% per annum is:
a. P600.00
b. P665.00
c. P700.00
d. P725.00
Solution:
Given: 1 = 7% per annum or 0.583%/month
n = 30 x 12 = 360 periods
IA = Pl 00,000 (also the principal)
Solution: MP = IA(AF); AF = f6 = fl/f2
Where: Factor f6 = i(l +i),..nf[(l +i),..n-1)
AF= .00583(1.00583)"'360/[(I.00583)"'360-1) = .00665
MP= 100,000 x .00665 = P665.00 (b)
2. Output tax for VAT: The developer sold a studio unit for P3,300,000.00 with
a 10% cash discount How much is the output tax for VAT?
a. P396,000
b. P353,571
c. P356,400
d. P318,214
e. None of the above
Solution:
Given: Selling price = P3,330,000 less 10% discount
Net selling price = P3,300,000 x .90 = P2,970,000
VAT threshold= P3,199,200 > P2,970,000
Therefore, the sale is not subject to VAT (e. None of the above)
3. Output tax for VAT: The developer sold a studio unit for P3,300,000
exclusive of 12% VAT. How much is the output tax for VAT?
a. P396,000 I I
b. P353,571
C. P356,400
d. P318,214
e. None of the above
Solution:
,Given: Selling price = ,P3,300,000 exclusive of VAT
Find: l 2%EVAT
EVAT= Base price x 12% , ·
EVAT = 0.12 x P3,300,000 = P396,000 (a) ·· ,
4. Net Selling Price: The developer sold a studio unit for P3,800,000 inclusive
of 12% VAT.. How much is the ·selling,price exclusive of VAT? .
J ; ,· • J 1 !. ! 1 ' < I
' ' '
a. P3,344,000
b. P3,392,857
C. P3,384,000
d. P3,398,857
Solution:
Given: Selling price= P3,800,000 inclusive of VAT
Find: Net selling price exclusive of VAT
Net selling pmce ';"',3,800,000 - 12% VAT·
NSP + .12 NSP = 3,800,000 · ', . · , 1
1.12 NSP = 3-,800,000 · i n .( 1
NSP = P3,392,857 (b) 1· ·
5. Percentage Tax: The developer sold a studio unit foi ,P3,300,000 'with 1096
discount. How much is the Percentage,Tax?
a. P99,000
b. P89,100
c. P96,116
d. PB6,505 1'
e. None of the above
Solution:
Percentage tax is not passed on. 'Thus it is applied directly to the selling
.
pnce
Given: Selling price= P3,300,000
Find percentage 3% ,
Percentage tax = .03 x 3,300,000 = P99,000 (a)
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6. Creditable withholding tax: J]ie'developer sold a studio unit for P3,300,000
less a 10% discount How much is the creditable withholding tax?
a. P148,500
b. P165,000 'I
c. P89,100
d. P99,000
e. None of the above • tit I
' '{ d I, ! t I I' ' l ,t, hi l l' '
Solution: : ,,
Remember: 1.51/3/5 I ' 500k/2M/2M+
i
Given: Price= 3,300,000 less 1'0% 1 , , , 1
Net Price = .90 x 3,300,000 = 2,970,000 r ,. ,
Since it is over 2M . . ,1
CWT= 5% x 2,970,000 = P148,500 (a)
· 7· Creditable withholding tax: The developer sold a studio unit for P3,800,000
inclusive of 12% VAT. How much is the creditable withholding tax?
a. Pl69,643
b. Pl90,000
C. Pl67,200
d. Pl00,320
Solution:
Given: Price is P3,800,000 inclusive VAT , ·
Find creditable withholding tax
Solution:
C\VT is based on the net selling price
NSP = 3,800,000 x 100/112 = 3,392,857 > 2M
cwr = 5% x 3,392,857 = Pl69,643 (a)
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8. Docs stamps tax (DSn: The developer sold a studio unit for P3,800,000
inclusive 12% VAT. How much is the documentary stamps tax?
a. P57,000
b. PS0,160
c. P38,000
d. P33,440
Solutipn:
Given: Price is P3,800,000 inclusive of VAT
Find: DST ·
Solution: DST on sales is 1.5%
DST = 1.5% x 3,800,000
DST = P57 ,000 (a)
9. Capital gain tax: the residential lot owner sells his lot for P2,000,000. How
much is the capital'gains tax?
a. PI20,000
b. PI00,000
c. PI30,000
d. PII0,000
Solution:
Given: Selling price = P2,000,000
Find: Capital gains tax
CGT = 6% x 2,000,000 = P120,000 (a)
IO.Broker's Commission: a condo priced at PS,400,000 inclusive of VAT is
sold installment. Year 1 installment paid is Pl,350,000. How much is the
broker's full 5% commission if based on selling price net of VAT?
'
a. P252,000 '111 '
b. P67,500
c. P302,400
d. P225,000
Solution:
Brokers PF on installment sale
Given: Price PS,040,000 inclusive VAT. Year 1 payment Pl ,350,000
Find: Broker's professional fee iof 5% , ' 1
,
Solution: Net price = 5,040,000 x 100/112 = 4,500,000
Broker's PF= 5% x 4,500,000 = 225,000 (di) 1 , ' •,
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I I.Broker's Percentage Tax: A condo priced at PS,040,000 inclusive of VAT is
sold on installment Year l installment paid is PI,350,000. How much is the
broker's percentage tax?
a. P39,285
b. P40,500
C. P6,750
d. PI3,000
Solution:
Given: Price P5,040,000 inclusive VAT. Year 1 payment Pl ,350,000
Find: Broker's percentage tax of 3%
Net price = 5,040,000 x 100/112 = 4,500,000
Broker's PF= 5% x 4,500,000 ,= 225,000
Broker's percentage tax = 3% x 225,000 = P6,750 (c)
12. Withholding tax on commission: A condo's selling price, VAT inclusive, is
P5,040,000. How much is the creditable withholding tax to be withheld from
the vatable broker's 5% commission on the assuming his withholding tax rate
is 10%?
a. P25,200
b. P30,240
C. P22,500
d. P20,089 n
Solution:
Given: Sale PS,040,000 including VAT
Find: Broker's withholding
NSP = P4,500,000 ,
PF= 5% x 4,500,000 = 225,000 (inclusive· of VAT)
Net PF= 100/112 x 225,000 = 200,893
Wtax = 10% x 200,893 = P20,089 (d)
13.Broker's Income Tax: A broker has a net income of P225,000 for the year.
He is married with 2 kicls and entitled to tot.al deductions of Pl OOK. How
much is his income tax if the tax rate is P8.5K + 2096 in excess of P70K?
a. P8,S00
b. Pl9,S00
c. P2S~OOO
d. P30,000
Solution:
Given: P225,000.· Exemptions Pl 00K. tax bracket is P8.5K+20% excess
ofP70K
Gross · 1 P225,000 '
Exemptions · 100,000
Net taxable P125,000
Tax= (125,000 - 70,000) x 20% + 8,500
Tax = Pl9,500 (b)
14. Estate tax: What is the maximum allowable amount of deduction for the
"family home" of the decedent in computing his estate tax?
a. PS00,000
b. P200,000 I •
c. Pl.O million
d. P2.0 million • I '
15.LGU Taxes: Compute the maximum transfer tax on a residential LOT
recently sold for PSM in Metro Manila.
a. P20,000
b. P37,500
C. P40,000
d. PS0,000
Solution:
IT= PS,000,000 x .01 x .75 = P37,500 (b)
16.LGU taxes: Compute the maximum real property tax on a residential lot with
a fair market value of PSM in Metro Manila.
a. P20,000
b. P37,500 ('
C. P40,000
d. PS0,000 ' ..
''
Solution: I '
RPT = PS,000,000 x .20 x .02 = P20,000' (a) ·
17.A rectangular lot measures 20M wide x 40M long. If the required setbacks
are: 3 meters' front, 2 meters' sides, and 2 meters' , rear, ancl as'suming an
FAR (Floor-Area-Ratio) of 5, how many stories can,be built?
a. 4 storeys I 1I
b. 5 storeys
c. 6 storeys
d. 7 storeys
Solution:
Footprint area = (20-2-2) x (40-3-2) = 560 sqm
Storeys = (5 x 800)/560 = 7 storeys (d)
18.Lot area 1,000 sqm purchased at P5K/sqm 4BR House GFA 200 sqm costs
P25K/sqm. Target net profit after business tax is 25% of direct costs. How
much should the final selling price be, inclusive of 5% broker's commission
on the total selling price and 12% EVAT?
a. Pl3,125,000
b. Pl4,700,000
c. P13,240,000
d. P14,827,995
Solution:
COST of LOT 1,000 x 5,000 = 5,000,000
COST OF HOUSE 200 x 25,000 = 5,000,000
Target net profit= 25% x 10,000,000 = 2,500,000.00
i 2,500,000.00
Find TSP: VAT= (12/112) TSP= 0.107 TSP
PF= 5% TSP = 0.05 TSP
TSP= 12,500,000 + 0.107TSP + 0.0STSP
0.843 TSP= 12,500,000
TSP= P14,827,995 (d)
19.Bank loan: Buyer,of a•Pl5,000,000 property is willing to pay 3096 DP and
bank willing to'finance the balance. If ~t.will be a 30 years' loan at 7% interest,
how much is monthly amortization? Use an amortization factor of 0.00665
a. P60,000
b. P69,825
C. P99,750
d. P90,000
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Solution:
Selling price P 15,000,000
Loan= 7096 x Pl5M , Pl 0,500,000
Terms: 30 years 7%
AF= f6 = fl/t2 = 0.00665
Monthly Amortization= .00665 x 10,500,000 = P69,825 (b)
Basic Appraisal for Real Estate Brokers
Answer Key
1. b P665.00
2. e None of the above
3. a P396,000
4. b P3,392,857
5. a P99,000
6. a Pl48,500
7. a Pl69,643
8. a P57,000
9. a Pl20,000
10.d P225,000
11.c P6,750
12.d P20,089
13.b P19,500
14.c Pl .0 million
15.b P37,500
16.a P20,000
17.d 7 storeys
18.d P14,827,995
19.b P69,825
