TAX REPORTING OF LOSSES

All losses are considered business expenses

• True

• False

If a taxpayer has filed a declaration of loss, the BIR will issue

• Certificate of Loss

• Affidavit of Loss

• Proof of Loss

• Deductible Loss

This pertains to the condition of goods which become waste due to damage or impairment in quality caused by natural or other causes.

• Spoilage

• Deterioration

• Obsolescence

• Expiration

This pertains to the condition wherein the goods have been determined to be waste due to damage or impairment in quality caused by corrosion, weakening or disintegration, whether by natural or other causes.

• Deterioration

• Spoilage

• Obsolescence

• Expiration

This o the condition wherein the goods are rendered useless and outdated or have lost their value due to advances in technology, product innovation or development, or change in consumer demand.

• Obsolescence

• Expiration

• Spoilage

• Deterioration

This pertains to the condition of consumable goods that have become unfit for consumption due to the termination or lapse of its predetermined useful life.

• Expiration

• Spoilage

• Deterioration

• Obsolescence

Period to File Application for Destruction/Disposal of Goods

• 7 days

• 5 days

• 14 days

• 45 days

Generally, the value of the loss is based on

• Actual cost

• Adjusted cost

• Inventory valuation

• Fair value

In Application for Destruction / Disposal of Goods, the BIR will issue

• Certificate of Deductibility

• Certificate of Loss

• Witness Certification of Destruction

• Certificate of Disposition

Donations are generally valued at

• Acquisition cost

• Appraisal value

• Book value

• Fair market value