BIR Ruling No. 202-83

November 17, 1983 BIR RULING NO. 202-83 M a d a m : This refers to your letter dated November 10, 1983 requesting exemption from the payment of the capital gains tax imposed by Section 34(h) of the Tax Code as amended by Batas Pambansa Blg. 37 relative to the expropriation of your commercial lot covered by transfer certificate of Title No. 136619 situated at No. 7 Araneta Blvd. Ext. Quezon City. It is represented that you are a real estate dealer being the owner of a commercial lot with a four door apartment erected thereon; that the said property was expropriated by the Ministry of Public Highways; and that you will be paid the amount of P159,600.00 by the Ministry of Public Highways as stipulated in a Contract of Sale dated October 18, 1983. In reply, I have the honor to inform you that since your property is not a capital asset, the gain derived by you from the sale thereof 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 Batas Pambansa Blg. 135. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner Bureau of Internal Revenue