BIR Ruling

March 10, 1976 Guzman, Bocaling & Co. 416 Regina Building Escolta, Manila Gentlemen : This refers to your letter dated February 23, 1976 requesting a ruling on the following facts: "Our client will sell its investments in shares of stock which were acquired prior to November 5, 1970. This transaction is subject to income tax on capital gain. However, our client sold some investments in shares of stock in which they sustained a capital loss. These shares were acquired subsequent to November 5, 1970, hence the selling price thereof was subjected to the 1/4 of 1% stock transaction tax." In reply, I have the honor to inform you that the capital loss sustained on the sale of shares of stocks acquired after November 5, 1970 is deductible from the capital gain derived on the sale of shares of stock acquired prior to November 5, 1970. Under Section 134 of Revenue Regulations No. 2, losses from sales or exchanges of capital assets are allowed only to the extent of the gains from such sales of exchanges. Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."