BIR Ruling
BIR Ruling • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • May 21, 1975
Full text
May 21, 1975 Mr. Levi R. Rebanal 284 Panam Drive Airlane Village, Paraaque Rizal S i r : In reply to the queries contained in your letter dated May 8, 1975, I have the honor to inform you as follows: The excess between the proceeds of the expropriation of your real property whether based on its fair market value or its valuation under Presidential Decree No. 76 and its acquisition cost is subject to capital gains tax of 100% if said property is held for less than one year and 50% if held for more than one year as provided under Sec. 34 of the Tax Code. The capital gains tax is still payable by you notwithstanding the use of the proceeds of the expropriation to purchase a new lot wherein to construct new house as replacement. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN 1601-593-5
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