Exemption from the Payment of Capital Gains Tax in Order to Effect Transfer of Title of the Property

May 8, 1987 BIR RULING NO. 125-87 21 (e) 202-83 125-87 M a d a m : This refers to your letter dated April 28, 1987 requesting exemption from the payment of capital gains tax in order to effect transfer of title of the property in your name. It is represented that on March 4, 1987, you and Ms. Lourdes M. Caguiat bought the subdivided 3 door apartment building of Dr. Albert Isaac; that you bought apartment-C while Ms. Lourdes M. Caguiat bought apartment-A of the said 3 door apartment building; that the property is covered by Transfer Certificate of Title No. 69511 issued by the Register of Deeds of Manila; and that prior to the sale of said property, the same is being used by Dr. Alberto Isaac in his apartment business. In reply, I have the honor to inform you that since the property you and Ms. Lourdes M. Caguiat bought is not a capital asset, the gain derived by Dr. Alberto Isaac from the sale thereof is not subject to the final capital gains tax prescribed by Section 21(e) of the Tax Code as amended by Executive Order No. 37 but to the ordinary income tax rates prescribed by Section 21(a) of the Tax Code as amended by Executive Order No. 37. cdta Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner