BIR Ruling

September 2, 1971 Mr. Julio Tagare Misamis Colleges Ozamiz City S i r : This refers to your letter dated June 30, 1971 requesting information as to whether or not an owner of a residential house a portion of which is occupied by the owner's family and the other portion of its is being rented for an amount of four thousand pesos (P4,000.00) annually, is subject to the fixed tax of P150.00. cdt In reply, I have the honor to inform you that the abovementioned owner is a real estate dealer. Section 194(s) of the Tax Code provides that a "real estate dealer" includes any person engaged in business of buying, selling, exchanging, leasing, or renting property as principal and holding himself out as a full or part time dealer in real estate or as an owner of rental property or properties rented or offered to rent for an aggregate amount of four thousand pesos or more a year. Any person shall be considered as engaged in business as a real estate dealer by the mere fact that he is the owner or sublessor or property rented or offered to rent for an aggregate amount of four thousand pesos or more a year. Such being the case, said owner is subject to the annual fixed tax of P150.00 as real estate dealer, pursuant to Section 182(A)(3)(aa) of the Tax Code. cdi Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue