Owners of Rental Property are Subject to the Real Estate Dealer's Fixed Tax
BIR Ruling No. 276-58 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • May 14, 1958
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May 14, 1958 BIR RULING NO. 276-58 Mr. Gregorio O. Calit Certified Public Accountant P. O. Box 33 Oroquieta, Misamis Occidental S i r : Reference is made to your query relative to the real estate dealer's fixed tax. In reply thereto, I have the honor to inform you that the ruling to the effect that owners of rental property are subject to the real estate dealer's fixed tax in their collective capacity is predicated on the fact that each co-owner cannot be established to own any distinct part or portion of the mass of property owned in common. On the other hand, in the case of property already partitioned among those in interest, there is already allotted to each participant a specific portion of the property. Each participant manages and leases his specific portion of the property. It is for this reason that they are held subject to tax in their individual capacity. Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue
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