BIR Ruling

September 3, 1973 Mrs. Concepcion V. de Roces 411 Rizal Ave., Manila Attention: Mr . Marcos B . Roces Attorney-in-fact M a d a m : In reply to your letter dated August 31, 1973, I have the honor to inform you that under the following facts: acd "A portion of this lot (157.9 sq. m.) was sold on October 31, 1967 and was declared as capital asset in my income tax return for the year 1967. The remaining portion was formerly occupied by shanty dwellers paying a monthly rental of about P200.00 up to January 1971. From February 1971 no more rentals were collected and I had to spend around P40,000.00 for attorney's fees, sheriff's fees, financial aids to tenants, security guards services, etc. in order to have the tenants move out from the land. This land has remained vacant since April 1972, except for one tenant who promised to vacate the premises early next month". the parcel of land you intend to sell is a capital asset. In order to avail of the benefits of exemption on the capital gains under Presidential Decree Nos. 16 and 16-A, the entire proceeds of the sale should be invested. aisadc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."