Treatment of an Abandoned Piece of Land

April 2, 1981 BIR RULING NO. 068-81 34-a-1 000-80 068-81 San Miguel Corporation 6766 Ayala Avenue Makati, Metro Manila Attention: Mr . Nazario L . Avendano Vice-President & Comptroller Gentlemen : This refers to your letter dated July 24, 1978 requesting confirmation of your treatment of your abandoned piece of land located at Makati, Metro Manila as a capital asset. Investigation conducted by this Office disclosed that you acquired the said property from Ayala Corporation on September 17, 1974; that you sold said property to Atlantic Gulf and Pacific Company of Manila on December 14, 1978; that from the time you purchased the said property up to its sale, you did not construct any building thereon; that it has not been utilized for any business venture conducted for profit; and that it has been used merely as a public parking space; hence, insofar as that Corporation is concerned, the property has been an idle, abandoned and unused property. In reply, I have the honor to inform you that, as we have ruled in similar cases respecting your abandoned property or property no longer used in your business, your treatment of the said property located at Makati as capital asset is hereby confirmed. (34 Am Jur. 2d, p. 118; Steward Title Guaranty Co., 20 TC 630, Providence Coal Mining Co. vs. Glenn, 39 AFTR 219) Very truly yours, RUBEN B. ANCHETA Acting Commissioner