Gain Derived from the Sale of a Co-owner's Interest Therein Not Subject to the Final Capital Gains Tax

May 31, 1985 BIR RULING NO. 082-85 34-h 045-84 082-85 M a d a m : This refers to your letter dated April 1, 1985, requesting for a certification authorizing the registration of the transfer of ownership of the co-owner's interest (totaling 36/1440) of Bernadette C. Dikitanan in a parcel of land covered by Transfer Certificate of Title No. 164957 of the Register of Deeds of Manila. It appears that Bernadette C. Dikitanan is a co-owner of a parcel of land located in the District of San Nicolas, Manila, consisting of Five Hundred Eighty Nine and 7/10 (589.7) square meters, more or less, and covered by TCT No. 164957 of the Register of Deeds of Manila; that the said parcel of land has been leased under Contract of Lease executed by the co-owners on June 11, 1969 in favor of Leader Land Resources Corporation; that the 36/1440 co-owners interest of Bernadette C. Dikitanan has been sold to Leonardo G. Syjuco (18/1440 interest) and Remedios M. Syjuco (18/1440 interest) pursuant to separate Deeds of Absolute Sale executed by her on March 21, 1985. In reply, I have the honor to inform you that since the property is not a capital asset, the gain derived by Bernadette C. Dikitanan from the sale of her co-owner's interest therein is not subject to the final capital gains tax prescribed by Section 34(h) of the Tax Code, as amended by Batas Pambansa Blg. 37 but to the ordinary income tax rates prescribed by Section 21(b) of the Tax Code, as amended by B.P. Blg. 135. aisadc Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner