Compliance of a Homesteader With All the Terms and Conditions

August 11, 1960 BIR RULING NO. 353-60 Mr. Luis Ramos Bo. Nabbuan Santiago, Isabela S i r : In reply to the query contained in your letter dated July 15, 1960, I have the honor to inform you that, when a homesteader has complied with all the terms and conditions which entitled him to a patent for a particular tract of public land, he acquires a vested interest therein, and is to be regarded as the equitable owner thereof. Even without the patent, a perfected homestead is a property right in the fullest sense, unaffected by the fact that the paramount title is still in the Government. Such land may be conveyed or inherited. (Balbon v. Farrales, 51 Phil. 498) Therefore, if at the time of the death of your feather be had complied with all the terms and conditions which entitled him to a patent on the said homestead and the same have a fair market value of P7,000.00, you are required to file an estate and inheritance tax returns, pursuant to Section 92(a) and (b) of the Tax Code. Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue