BIR Ruling

September 23, 1976 San Miguel Corporation 6766 Ayala Avenue Makati, Rizal Attention: Mr . D . T . Reyes Vice-President Gentlemen : This refers to your letter dated April 1, 1976 requesting confirmation of your treatment of your property, identified as Damargari Farm located at Barrio Capri, Novaliches, Caloocan City, as a capital asset. It is represented that the property was acquired by you in 1963; that you used it as a poultry farm and piggery on an experimental basis; and that finding that you no longer have any use for said property, you abandoned it last year, so that it has remained idle since then. In reply, I have the honor to inform you that inasmuch as the examiner who conducted an investigation of this case has ascertained that the said property has actually been abandoned and no longer used as a poultry farm and piggery since May, 1975, your aforesaid property is considered a capital asset, as defined in Section 34(1) of the Tax Code. (See 34 Am. Jur. 2d, p. 118; Steward Title Guaranty Co., 20 TC 630; Providence Coal Mining Co. vs. Glenn, 39 AFTR, 219). Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3