BIR Ruling No. 081-61

March 23, 1961 BIR RULING NO. 081-61 Mr. Felix A. Gulfin Attorney at Law 67 San Luis, Pasay City S i r : In reply to your query dated March 17, 1961, I have the honor to quote hereunder the pertinent provision of the National Internal Revenue Code: cdti "Sec. 84. (b) The term 'corporation' includes partnerships, no matter how created or organized, joint stock companies, joint accounts ( cuentas en participacion ) associations or insurance companies, but does not include duly registered general copartnerships ( companias colectivas )." For tax purposes, partnerships are considered corporation. Capital assets as defined in Section 34(a)(1) of the same Code does not include property used in the trade or business, of a character which is subject to the allowance for depreciation, or real property used in the trade or business of the taxpayer. Inasmuch as the real estate dealer, any gain derived from the sale thereof is an ordinary gain taxable in full. cdta Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue