BIR Ruling
BIR Ruling • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Apr 2, 1973
Full text
April 2, 1973 Justice Jose D. L. Reyes 192 F. Benitez Street San Juan, Rizal S i r : In reply to your letter dated March 27, 1973, I have the honor to inform you that, if the rental income from the parcels of land you own in common with your brother is more than P4,000.00 per annum, you are considered a real estate dealer and, therefore, the parcels of land in question are deemed used in business and, as such, are ordinary and not capital assets. (See Section 194(s) and Section 34(a)(1), Tax Code). The gain to be derived from the disposition of the parcels of land in question will, therefore, be ordinary and not capital gain. aisa dc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue
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