Request for Exemption of Real Estate Dealer from Payment of Capital Gains Tax Imposed by Sec. 34 (H) of the Tax Code

May 12, 1986 BIR RULING NO. 060-86 34-h 045-84 060-86 Gentlemen : This refers to your letter dated February 12, 1986 requesting exemption from the payment of the capital gains tax imposed by Section 34(h) of the Tax Code as amended by P.D. No. 1994. In reply, I have the honor to inform you that inasmuch as you are a real estate dealer, the lots you sell are not capital assets and, therefore, the gains derived by you from the sale thereof are not subject to the final capital gains tax prescribed by Section 34(h) of the Tax Code, as amended by P.D. No. 1994 but to the ordinary corporate income tax prescribed under Section 24(a) of the same Code, as amended. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner