Gains Derived from Sale of Subdivision Lots are Ordinary Gains Not Subject to Capital Gains Tax
BIR Ruling No. 103-80 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Jul 3, 1980
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July 23, 1980 BIR RULING NO. 103-80 Mr. Arsenio D. Benedicto 3 Sta. Fe Street San Francisco Del Monte Quezon City S i r : In reply to your letter dated June 11, 1980, I have the honor to inform you that the gains you derive from the sale of subdivision lots are ordinary gains, the same being profits derived from sale of property held primarily for sale to customers in the ordinary course of trade or business under Section 34 (a)(1) of the Tax Code of 1977, as amended, and are therefore not subject to the capital gains tax imposed by Section 34(h) of the Tax Code, as amended by Batas Pambansa Blg. 37, as implemented by Revenue Regulations No. 8-79. Very truly yours, RUBEN B. ANCHETA Acting Commissioner
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