Ms. Buenaventura S. Caseñas

December 11, 2008 BIR RULING [DA-(I-043) 517-08] 24 (D); 196; 188; DA-225-2006; DA-105-2006; DA-458-2006 Ms. Buenaventura S. Caseas 105 12th Avenue, Cubao, Quezon City Madam : This refers to your letter dated September 1, 2008 requesting for a ruling that the transfer of a condominium unit from your brother, Erlindo S. Caseas, as trustee in your favor, as trustor is exempt from capital gains tax and documentary stamp tax. Based on your representations, as well as from the documents submitted, it appears that on March 30, 1990, you purchased a condominium unit from Hardin Silangan, Inc. via a Contract to Sell; that said property is covered by Condominium Certificate of Title No. 822 located in Bougainvilla Mansions, 91 P. Tuazon St., Cubao, Quezon City; that on July 27, 1990, you executed a Trust Agreement with your brother, Erlindo S. Caseas, whereby the latter acknowledged that you are the true owner of the property and merely holds the property as your Trustee; that said property is now registered in the name of Erlindo S. Caseas; that Erlindo S. Caseas already passed away last February 23, 1999; that the heirs of Erlindo S. Caseas, namely, Concepcion Ponce de Leon Caseas (wife), Alan, Olivia, Francis, Erlindo, Jr. and Ines (children) executed a Waiver and Relinquishment of Rights acknowledging that her husband and father, respectively, held the said condominium unit as trustee and you are the trustor; and that since you are now 76 years old and unemployed for a long time, you are now planning to sell the said property. aITDAE In reply, please be informed that since the transfer of the condominium unit, as trustee, in favor of Buenaventura S. Caseas, as trustor, is without monetary consideration and is merely a confirmation of title/ownership in favor of the beneficial owner, the same is not subject to the capital gains tax imposed under Section 24 (D) and of the Tax Code of 1997, as amended. Likewise, the conveyance of realties to trustees or other persons without consideration is not taxable under Section 185 of the Revised Documentary Stamp Tax Regulations. Thus, the transfer of the aforesaid condominium unit from Erlindo S. Caseas to Buenaventura S. Caseas pursuant to the Trust Agreement, which is made without monetary consideration, is not subject to the documentary stamp tax imposed under Section 196 of the Tax Code of 1997, as amended. However, the notarial acknowledgment to the said deed is subject to the documentary stamp tax of P15.00 pursuant to Section 188 of the Tax Code of 1997. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service