BIR Ruling No. 018-62

January 15, 1962 BIR RULING NO. 018-62 The Philippine Free Press 708 Rizal Avenue, Manila Attention : Information Department Gentlemen : With reference to the query of Mr. Rufino A. Bero, I have the honor to inform you that a person who regularly sells or otherwise disposes of personal property on the installment plan, whether or not title remains in the vendor until the property is fully paid for, may return as income therefrom in any taxable year, that proportion of the installment payments actually received in that year which the total or gross profit (that is, sales less cost of goods sold) realized or to be realized when the property is paid for, bears to the total contract price. The income from a casual sale of other casual disposition of personal property (other than property of a kind which should properly be included in inventory) may be reported on the installment basis only if (1) the sale price excess P1,000.00 and (2) the initial payment do not exceed 25% per cent of the selling price. (Sec. 174, Income Tax Regulations.) As requested, the basic inquiry is herewith returned. cdtech Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue