Parcels of Land Sold by Integrated are Capital Assets

September 2, 1981 BIR RULING NO. 166-81 34-a-1 068-81 166-81 Board of Investments Industry & Investments Bldg. 385 Buendia Avenue Ext. Makati, Metro Manila Attention: Ms . Lilia R . Bautista Governor Dear Ms. Bautista : This refers to your letter dated April 29, 1981 requesting opinion on whether the two parcels of land sold by Integrated Realty Corporation (Integrated for brevity) are capital assets as defined under Section 34(a) of the Tax Code, as amended. Investigation conducted by this Office disclosed that Integrated is a domestic corporation actually engaged in the operation of a hotel and a coffee shop and as a real estate dealer renting out its building only; that on May 3, 1971, Integrated purchased for P250,000.00 the two parcels of land in question which are situated in Paraaque and which comprise of 200,211 square meters; that the said parcels of land were sold by Integrated to Mr. & Mrs. Renato Tanseco for P9,009,495.00 payable in five equal yearly installments; and that the said parcels of land were and still are raw lands, undeveloped, idle, unproductive, unimproved and not being utilized in business. In reply, please be informed that on the basis of the abovestated findings of this Office, the parcels of land sold by Integrated are capital assets within the contemplation of Section 34 of the Tax Code, as amended. aisadc Very truly yours, RUBEN B. ANCHETA Acting Commissioner