BIR Ruling No. 158-84
BIR Ruling No. 158-84 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Sep 25, 1984
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September 25, 1984 BIR RULING NO. 158-84 24-a-196-83-158-84 Gentlemen : This refers to your letter dated February 24, 1984 stating that your client, Univille Development Corporation recently acquired a real estate property located at Makati, Metro Manila, for P2 million; that negotiations are being undertaken to exchange the same with another real property of Lucky Star Development Corporation located at Antipolo, Rizal with an acquisition cost of P1.5 million and a present market value of P2 million. Based on the foregoing representations, you request a ruling as to whether Lucky Star Development Corporation shall be subject to capital gains tax/income tax as a result of the said exchange. In reply, I have the honor to inform you that Lucky Star Corporation is subject to the ordinary corporate income tax prescribed under Section 24(a) of the Tax Code on the gains that may be derived from the aforesaid exchange of its real property. cdta Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner
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