BIR Ruling No. 004-64

February 5, 1964 BIR RULING NO. 004-64 Mr. Clemente J. Celso Certified Public Accountant Suites 314-14 Yuchengco Bldg. Rosario, Manila S i r : In reply to your letter of December 9, 1963, I have the honor to inform you that your client may deduct his ordinary losses from his capital gains for the year 1963. Capital gains or gains from the sale of capital assets are considered items of gross income. Therefore, as long as the requirements for their deductibility under Section 30(d) of the Tax Code are complied with, ordinary losses are deductible from the capital gains of a taxpayer. On the other hand, capital losses cannot be deducted from ordinary income because under Sections 30(d)(4)(A) and 34(c) of the Tax Code, capital losses are deductible only to the extent of the capital gains during the taxable year. Ordinary losses are not, however, subject to such limitations. cdll Very truly yours, (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue